The Accountability of Municipal Corporations

The popular view that market forces controlled the development of financial reporting practices among nineteenth-century British companies has recently been shown, by Parker (1990), to be an oversimplification. Large companies engaged in the provision of public utilities, transportation and financial services were the subject of close regulation, though not necessarily or only for the purpose of shareholder protection. The nineteenth century also saw the creation of municipal corporations, and their development is marked by a further variation in the process of accounting change. A regulatory structure, including requirements for accountability, was established when the modern municipal corporation was created in 1834, and this broad framework remained in force without major amendment until 1930. The accounting practices employed by municipal corporations underwent fundamental change, however, to accommodate major alterations in the nature of their activities. The process of 'voluntary' change in response to market pressure received reinforcement from recommendations made by the highly active local-authority-oriented professional accounting body.     

Taxation when Borrowing is Costly*

The implications for taxation theory of a life-cycle model of consumption incorporating financial transactions costs are derived The equity case for progressive taxation is shown to correspond in a life-cycle setting, to an efficiency case. Individuals prefer a progressive tax system to a proportional one because the tax burden is lower when they are young and face high transactions costs of borrowing. Similarly, an income tax is preferred to a consumption tax. Unlike earlier models based on liquidity constraints, the model presented here involves a financial sector consuming real resources. This permits analysis of the tax treatment of financial services in a consumption tax system. Exemption of financial services will generally be desirable.     

The film business in the United States and Britain during the 1930s1

The film business in the United States and Britain during the 1930s. Film was a most important product in the lives of the people during the 1930s. This article sets out to analyse the underlying economic arrangements of the film industries of the United States and Britain during the decade for producing and diffusing this commodity type to the population at large. It finds a highly competitive industry that was built around showing films that audiences wanted to see, irrespective of the extent of vertical integration. It also examines the nature of the relationship between the two industries and finds an asymmetry between the popularity of British films in the American market and that of American films in the British market. The explanation offered is that the efforts of British firms in the American market were not sufficiently sustained to make a significant impact on American audiences.     

Variations in Immigrant Incorporation in the Neighborhoods of Amsterdam

Amsterdam’s immigrants of Caribbean and southern Mediterranean origin have been characterized as modestly segregated from Dutch residents, and their residential assimilation has been expected to proceed rapidly. This article tests the hypothesis of spatial assimilation using both aggregate data on levels of segregation and individual‐level analyses of the people who live in ethnic minority neighborhoods. Evidence is presented of assimilation for immigrants from the former colonies of Surinam and the Antilles, but Turks and Moroccans are shown to face stronger barriers. The former groups’ higher standing favors their mobility from ethnically distinct neighborhoods. There is a generational shift for Surinamese and Antilleans, while the Turks and Moroccans born in Amsterdam are as likely as the immigrant generation to settle in ethnic minority neighborhoods.     

The concept of the unemployable

Current government policy documents have been concerned with reforming welfare policy, with matching rights with responsibilities, and especially with reducing the numbers of incapacity benefit claimants. This article places these debates in historical perspective, and revises the existing historiography on poverty and unemployment, by exploring the concept of the 'unemployable' in the period 1880–1940. Up to 1914, unemployability embraced those unable and those unwilling to work, and in the 1920s, similar anxieties were reconstructed in the concept of the 'social problem group'. However, interwar social surveys were concerned more with the effects of long-term unemployment in creating unemployability. There are thus both changes and continuities between historical concerns with unemployability, and contemporary anxieties about incapacity benefit and worklessness.     

Consumer Experiences with Predatory Lending Practices

This investigation examines how consumers perceive and experience predatory lenders. Findings reveal that industry practices are carried out to the detriment of persons typically defined as “vulnerable,” such as elderly, impoverished, and African American consumers. Using a series of personal interviews with a geographically diverse set of respondents, data reveal thematic categories that include the friendly veneer, the rules of engagement, and an aggressive response, which capture the nuances of this exchange relationship from the perspective of these unwitting consumers. The closing section provides implications for scholars and regulators seeking workable solutions to limit additional financial exploitation.     

Information Transparency and Coordination Failure: Theory and Experiment

We examine the effect of higher order beliefs on the ability of decentralized decision makers to coordinate and take advantage of improvements in information transparency that can increase welfare. Theories that address this question have not been empirically explored. We study coordination in a laboratory experiment with privately informed decision makers. Economic outcomes in the setting depend both on agents' rational beliefs regarding economic fundamentals and on their rational beliefs regarding the beliefs of other agents. Increasing information transparency mitigates uncertainty about economic fundamentals but may increase strategic uncertainty, precipitating multiple equilibria and less efficient group outcomes. We provide evidence that sometimes the equilibrium attained by creditors is inferior from a welfare perspective to other available equilibria. Risk dominance appears to determine equilibrium selection in our setting.     

ANALYSIS OF COMPETITION IN THE DEFENSE INDUSTRIAL BASE: AN F‐22 CASE STUDY

Consolidation of the defense industrial base has led to concerns about whether enough competition exists between remaining firms to maintain needed cost reduction and innovation. We examine competition in the U.S. defense industrial base by performing an in‐depth case study of Lockheed Martin and the F‐22 program that considers multiple tiers of the industrial base. We find that defense firm specialization has led to outsourcing practices and arguably a more robust U.S. defense industrial base. Implications for government policy are identified. (JEL H57, O38, D43, L14)     

MIXED OLIGOPOLY IN A SINGLE INTERNATIONAL MARKET*

This paper departs from previous literature by considering a mixed oligopoly with two countries each with public and private firms competing in a single market. This differs from the traditional framework of examining a single domestic market in which foreign and domestic firms compete and is motivated, in part, by international airline markets but serves to characterise many markets. The resulting equilibrium emphasises that the strategic interaction of the two public firms usually serves to reduce welfare. Thus, the usual reason to imagine a public firm in a mixed oligopoly, to enhance welfare, is lost when such firms compete in the interest of their respective countries.