An econometric analysis of affirmative action

Conclusion In this paper we have described a methodology to measure the effect of perceived discrimination on the supply of black job applicants and the effectiveness of an affirmative action program in overcoming this effect. Using multiple regression analysis we have shown that there exists a highly significant relation between the percentage of black and white applicants from the District of Columbia to Fairfax County and salary levels based on EEO-4 job categories. While the court has held that there is no evidence of current discrimination by Fairfax County, the success of its affirmative action program for D.C. black firefighter applicants in 1978 lends strong statistical support to the hypothesis of perceived discrimination and the effectiveness of a vigorous affirmative action program in reducing the labor market effects of perceived discrimination. Our result does not refute the county’s claim that lower salaries and transportation problems act to inhibit black applicants to the county from the District of Columbia; however, we have shown that perceived discrimination also plays a part. A vigorous outreach and affirmative action program has increased the supply of black applicants to the county. Economic variables such as salary differentials, transportation difficulties, etc., while they reduce the supply of black applicants from the District to Fairfax, may be partially overcome by a vigorous, active affirmative action program.     

IX. Geld und kapital

Ohne Zusammenfassung     

The Service Sector is Also Productive

Does growth come from manufacturing or services? Walter Eltis, Director General of NEDO, and Andrew Murfin, argue there is no evidence that manufacturing is more important as a source of economic growth than services.     

Incentive monotonicity and equilibrium selection in 2×2 matrix games

For the class of 2×2 matrix games with two strict Nash equilibria the paper introduces an equilibrium refinement called incentive monotonicity. It selects the risk-dominant equilibrium if interests are conflicting, while it remains silent in games with common interests. These results suggest that the equilibrium-selection problem might be more difficult in games with common interests, which is certainly the case if risk dominance and payoff dominance go in opposite directions.     

Lösung eines Maschinen-Reihenfolge-Problems von Thompson mit Hilfe eines lexikographischen Suchalgorithmus

Ohne Zusammenfassung     

Bank underwriting of debt securities: modern evidence

This article examines debt securities underwritten by Section20 subsidiaries of bank holding companies relative to thoseunderwritten by investment houses. Consistent with a net certificationeffect for banks, bank underwriting of lower credit rated firmsto whom the bank lends results in relatively higher prices (loweryields). We find no evidence of conflicts of interest even whenan issue is used to repay bank debt. Further, banks bring arelatively larger proportion of small issues to the market.Contrary to the contention that universal banking stunts availabilityof finance to small firms, bank underwritings appear to benefitsmall firms.