STABLE SETS AND STEADY WAGES

This paper uses the notion of the Stable Set, in conjunction with a mild restriction on the extent to which a firm can quickly replace its entire workforce, to explain equal treatment across workers within a firm yet wage differentials across firms, and why a firm responds with quantity rather than with wage adjustments to shocks.     

2002 LAWRENCE R. KLEIN LECTURE LIQUIDITY AND ASSET PRICES*

We broadly define liquid assets, or monetary assets, as any asset that can be readily sold in the market and can be held by a number of people in succession before maturity. We ask in what environment is the circulation of liquid assets essential for the smooth running of the economy. By developing a canonical model of a monetary economy (i.e., where the circulation of liquid assets is essential), we are able to examine the interaction between liquidity, asset prices, and aggregate economic activity.     

Exploring the Role of Symbolic Legitimation in Voluntary Journal List Adoption

Abstract

Journal lists are common in the global accounting academy, yet the underlying ‘research quality’ construct is ill defined and the specific processes used in voluntary list adoptions have not been systematically tied to theory. This paper raises the questions: (1) What is driving voluntary journal list adoptions? and (2) Are journal list projects more closely aligned with addressing well-specified public problems or with effecting symbolic legitimation? A set of theory-based questions help structure an assessment of the process used by two American accounting/business programs with traditional teaching missions as they work toward developing an institution-specific journal list. Subject to the usual cautions about the generalizability of a case study described by an active player, the narrative suggests that symbolic legitimation issues may play a key role in journal listing and ranking processes.     

Transition Ethics: A Comparison of Ukrainian and United States Business Professionals

This article compares the ethical attitudes of Ukrainian business professionals with those of United States business professionals. A widely used survey instrument consisting of 16 hypothetical situations involving ethical dilemmas was employed to gather information on ethical attitudes in the two countries. On 13 of 16 vignettes, Ukrainian respondents demonstrated less stringent ethical attitudes than did their United States counterparts. Possible reasons for these differences are discussed, with primary emphasis on the transition from one economic system to another that is underway in Ukraine. Comments from Ukrainian respondents are presented so as to give an indication of the thought processes behind the questionnaire responses. Olena Vynoslavska is Head of Psychology and Pedagogics Chair at the National Technical University of Ukraine, Kyiv. She has been a research scholar under the sponsorship of the International Research and Educational Exchange program of the United States Department of State at Baylor University. Her research has included international comparative studies of entrepreneurship and management techniques. Joseph A. McKinney is Ben H. Williams Professor of International Economics at Baylor University. He was previously on the faculty of the University of Virginia, and has served as visiting professor or research scholar to universities in Japan, France, the United Kingdom and Canada. His research interests include business ethics, international trade policy, and regional economic integration. Carlos W. Moore is the Edwin W. Streetman Professor of Marketing at Baylor University, where he has been on the faculty for more than 30 years. His research interests include business ethics, marketing and advertising evaluation, and small business strategies. He has done consulting on bank marketing and new product development. Justin G. Longenecker is Emeritus Professor of Management at Baylor University. His research interests include business ethics, entrepreneurship, and family business. He is co-author of the leading text on small business management, and is the author of scholarly articles on various aspects of business management.     

Less of a puzzle: a new look at the forward forex market

The two-country monetary model is extended to include a consumption externality with habit persistence. The model is simulated using the artificial economy methodology. The ‘puzzles’ in the forward market are re-examined. The model is able to account for: (a) the low volatility of the forward discount; (b) the higher volatility of expected forward speculative profit; (c) the even higher volatility of the spot return; (d) the persistence in the forward discount; (e) the martingale behavior of spot exchange rates; and (f) the negative covariance between the expected spot return and expected forward speculative profit. It is unable to account for the forward market bias because the volatility of the expected spot return is too large relative to the volatility of the expected forward speculative profit.     

Trade policy,export expansion,human capital and growth

This paper empirically investigates the impact of trade policy on export expansion and on GDP growth in developing countries while controlling for the human capital stock and the initial level of development. By using a simultaneous system estimation we unite the approach found in the export expansion and growth literature with the approach found in papers that estimate the effect of trade policy on growth, while also making several improvements in the estimation of the underlying relationships. The results obtained from our estimation are more credible because of these improvements and therefore have stronger policy implications. We find that outward-oriented trade policies substantially and significantly impact growth in developing countries not only by directly enhancing exports but also through a feedback (or multiplier) effect.     

PROCESS STUDIES OF TOURISTS’ DECISION-MAKING

We review tourism decision-making paradigms. We conclude that the literature is dominated by ‘variance’ studies of tourists’ decisions by causal analysis of independent variables explaining choices by tourists. This ‘choice set’ approach is in consonance with the need to understand important issues such as destination attractiveness and marketing. We argue that this approach does not incorporate an ontology of decision-making as a process, a deeper understanding of which may only be generated through studies that involve narrating emergent actions and activities through which individual or collective endeavours unfold. From this base we review the tourism decision-making literature and argue for the development of process studies as an important adjunct to the current body of knowledge.     

Does industrial concentration impact on the relationship between policies and volatility?

It is usually recommended that countries diversify their economies to guard against any negative shocks that might impact on one industry. However, previous research has not identified how concentration can impact on the effectiveness of macroeconomic policies. This paper attempts to evaluate the relationship between industrial concentration, policies and economic volatility for a sample of 147 countries for the period 1970 to 2005. The study reports that less concentrated countries tend to have lower rates of output, consumption and investment growth volatility. In addition, while trade and capital account openness variables alone tend to diminish economic volatility, in concentrated economies opening both the capital and trade account can increase economic volatility.