The construction of US utility accounting: 1882–1944

This paper seeks to contribute to a longstanding tradition in accounting research which attempts to understand accounting within its social and historical context. The topic of this historical narrative is the creation and role of accounting in the formation of the electricity industry in the US between 1882 until 1944. The paper is divided into three parts. In the first part we examine how early electrical engineers struggled to understand the nature and behavior of the costs of generating and distributing electricity at the turn of the 19th Century. In doing so, these engineers established a relationship between costs and the engineering concepts of load factor and diversity and developed pricing structures which would recover both standing (fixed) and running (variable) costs. In the second phase, we examine how this accounting knowledge was deployed by early “inventor entrepreneurs” and businessmen in their attempts to dominate the early electric markets in the US and how investor owned regulated utilities emerged out of these strategies as a uniquely North American institution. In the final phase, we examine how accounting became the center of intense conflict between regulatory commissions and investor owned utilities in the US court system – including the Supreme Court – as representatives of these entities vied with each other over the chart of accounts, allowable expenses, the valuation of assets and depreciation. Here we contend that utility accounting did not simply grow to reflect a regulatory process but rather worked to shape utility regulation in the US. In 1944 a legal ruling displaced the primacy of accounting in the regulatory process and shifted its focus from asset valuation to rate of return determination. The space once dominated by accountants was ceded to regulatory economists. After that, accounting became taken-for-granted and matter-of-fact.     

Deregulation of wholesale petrol prices: what happened to capital city petrol prices?

Wholesale petrol prices were deregulated in August 1998. This paper will quantify the effect associated with the deregulation of wholesale petrol prices on relative retail prices for unleaded petrol in Adelaide, Melbourne and Sydney. This is done through Box–Jenkins autoregressive integrated moving average methodology coupled with Box and Tiao intervention analysis. Weekly price data will be used for Adelaide, Melbourne, and Sydney. It finds that from the beginning of 1999, deregulation coincided with relatively lower retail petrol prices for all three cities. In the absence of any other possible alternative explanation for the simultaneous fall in relative retail petrol prices across all three cities, it is concluded that this change was most likely associated with deregulation. These results suggest that regulation of wholesale petrol prices were ineffectual in terms of constraining capital city retail petrol prices at the very least and may have actually contributed towards relatively higher retail petrol prices. This also suggests that future policy interventions designed to constrain prices in the downstream petroleum industry should be very carefully considered.     

Economics and Biological Evolution

The employment of insecticides raises the relative fitness of resistant insects; the use of antibiotics applies selection pressure in favour of resistant strains of bacteria; lower limits on fish net mesh size raises the advantages of smaller adults. These are some of the many examples of the unintended impact of human activity upon biological evolution. Often this evolution has economic significance, as it does in the examples quoted. This paper examines some of the principles involved and provides a preliminary analysis of the extent to which the economically optimal inducement of evolution differs from that arising when changes in selection pressures are not anticipated. Thanks are due to Jenny Ligthart and other participants at the 1994 EAERE conference in Dublin and especially to two referees of this journal for their helpful comments.     

Measuring growth: Is the new US approach better?

In this article, Alistair Barr looks at the new approach adopted by the United States to measure growth. He argues that chain-weighting is not to blame for the downward revision to estimates of growth during the current recovery. However, it has highlighted the sensitivity of estimates of real growth to different methodologies and this has implications for cross-country comparisons.     

About the authors

This article is inspired by a somewhat counter-intuitive phenomenon that has recently been highlighted in the contemporary business literature, but which does not appear to have been examined within a peer-reviewed environment. We are witnessing increasing successes by domestic brands in China, often at the expense of established multinational brands. Given that China is the world's largest national market in terms of population, this trend is worthy of investigation. Our approach is neither causal nor confirmatory. Instead, we undertake an exploratory review of robust secondary data sources. Our goal is to shed empirical light on what appears to be a ‘Sinosyncratic anomaly’, and then to provide a framework and springboard for future research in this domain. Clearly, our approach is not without limitations, which we do consider. However, there is a pressing need for global marketers to recognise and understand the reasons behind the mixed fortunes being experienced by some of the world's most admired (Western) brands in China, with a view to making empirical generalisations to other emerging markets.     

Input Substitution,Productivity Performance and Farm Size

This paper develops a theoretical model to examine the relationship between the input elasticity of (technical) substitution and both farm total factor productivity and size. In the presence of ongoing technical change and its factor bias, the ‘income effect’ arising from farms' cost minimising behaviour enables them to increase productivity by saving inputs or, through the dual equivalent, enlarging farm size. As such, farms with higher elasticities of substitution tend to grow larger and become more productive, which provides a new mechanism through which farm heterogeneity in productivity growth can be examined. Empirical evidence from Australian broadacre agriculture supports this theory and points to important policy implications.     

The English Tourist Network Automation project: a case study in interorganizational system failure

What are the barriers to the success of inter-organizational information systems? This question is considered through an examination of the English Tourist Network Automation (ETNA) project, launched in 1990 with the declared aim of implementation within the majority of tourist information centres within two years. The project was abandoned in 1993 with systems installed in 17% of the target population. Tourist information centres are provided by an inter-organizational network involving national, regional and local bodies. The impact that the complexities of this network had on the failure of the system are explored through an analysis of published documents. The importance of an organizational perspective with a clear view of the role of organizational politics to supplement technical considerations is stressed.     

The Economic Analysis of Industrial Accidents: a re-assessment

Conventional economic approaches to the analysis of industrial accidents utilise the hedonic pricing approach. This approach usually excludes potentially important institutional, sociological and macroeconomic determinants of occupational safety. Initially we identify some of the theoretical and empirical problems with orthodox economic analysis in this area. An alternative model is then formulated which explicitly encompasses a broader range of determinants. Finally, the model is tested using UK industry accident data, the results being inconsistent with the compensating differentials' emphasis of orthodox analysis but supportive of the augmented model.