Community and class antagonism

We investigate how vertical unity within a community interacts with horizontal class divisions of an unequal income distribution. Community is conceptualized in terms of a public good to which all those in the community have equal access, but from which outsiders are excluded. We formulate the idea of redistributive tension, or class antagonism, in terms of the costs that poorer individuals would be willing to impose on the rich, to achieve a given gain in personal income. Our conclusion is that the nominal distribution of income could give a misleading picture of tensions in society, both within and across communities. Ideologies of community solidarity may well trump those of class solidarity because of the implicit sharing of community resources brought about by community-specific public goods. Greater economic mobility of particular types may actually exacerbate class tensions instead of attenuating them. We illustrate our theoretical results with a discussion of a number of historical episodes of shifting class tensions and alliances.     

Auction theory adaptations for real life applications

We develop extensions to auction theory results that are useful in real life scenarios.1. Since valuations are generally positive we first develop approximations using the log-normal distribution. This would be useful for many finance related auction settings since asset prices are usually non-negative.2. We formulate a positive symmetric discrete distribution, which is likely to be followed by the total number of auction participants, and incorporate this into auction theory results.3. We develop extensions when the valuations of the bidders are interdependent and incorporate all the results developed into a final combined realistic setting.4. Our methods can be a practical tool for bidders and auction sellers to maximize their profits. The models developed here could be potentially useful for inventory estimation and for wholesale procurement of financial instruments and also non-financial commodities.All the propositions are new results and they refer to existing results which are stated as Lemmas.     

Traded and Nontraded Goods and Real Wages

The paper explains most, if not all, observations made by the empirical literature regarding the behavior of skilled and unskilled real wages in the United States, especially those since 1980. Generalizing the Stopler–Samuelson theorem, the authors show that the nontraded sector is critical to explaining the effects of changes in the price of traded goods on relative and absolute wages. Factor‐intensities play their role as in the traditional Stolper–Samuelson model, but the output of the nontraded sector matters as well. Specifically, freer trade benefits capital and hurts both the skilled and unskilled labor if the import as well as the nontraded sectors contract. This is a new result to the literature on Stolper–Samuelson issues.     

Environmental influences on corporate entrepreneurship: executive perspectives on the internet

This paper focuses on the likelihood of firms adopting corporate entrepreneurship in response to the challenges and opportunities presented by a change in their business environment shaped by the growth of the Internet. We further examined if firms are willing to modify their existing systems in response to such a change. We also investigated the paths or modes of entrepreneurship that firms would adopt when they perceive being entrepreneurial to be a viable response in light of a specific change in their business environment. Finally, we identified the impediments that firms may need to overcome when adopting corporate entrepreneurship. Results based on the data from senior executives lend support to our hypotheses. Managerial implications of the results are discussed.     

Regulation,Minimum Wage and Informality: Introduction to Symposium

Are markets in developing and transition economies over‐regulated or under‐regulated? This is a perennial question in the development discourse, but one for which answers appear to come more from preset ideology than from context‐specific analysis and evidence. These issues become even more pressing when the debate turns to the links between regulation, deregulation and inequality. The recent experience of rising inequality in many countries has also brought to the fore predictable policy positions. A key aspect of labor regulation in developing countries, and one becoming more prominent in the era of rising inequality, is the minimum wage. The range of issues around regulation, minimum wage and informality was addressed by papers presented to a conference held in New Delhi on December 17–18, 2014. The conference was co‐sponsored by the World Bank, UK Department for International Development, Cornell University and Columbia University. The organizers of the conference were Kaushik Basu, Stefan Dercon, Ravi Kanbur and Jan Svejnar. A selection of papers from the conference which passed the usual review procedures of the Review of Development Economics, and a further selection of papers from those submitted to the journal, form this symposium.     

An Investigation of Justice in supply chain relationships and their performance impact

Justice is important in improving performance of supply chain relationships. However, the role of justice in improving performance in supply chain relationships is an under-investigated subject in the literature. In studying the joint impact of justice dimensions, the traditional assumption is that the three forms of justice interact with each other in a multiplicative manner. However, this assumption creates a managerial problem as discussed in this paper. We outline a different view of how the justice dimensions interact with one another utilizing the constraining factor model (CFM). We show that the CFM resolves some of the problems arising from the choice of multiplicative interaction of justice measures on performance. Specifically, we demonstrate that an increase in procedural, distributive or interactional justice results in a significant and positive improvement in performance only if the specific justice dimension is the constraining factor in the relationship. Overall, our analysis suggests that all three dimensions are important and a high level of one of the justice elements will not compensate for a low level of another, a view that is put forward by a number of past research studies in justice. We discuss the theoretical and managerial implications of our findings.     

The initiation of audit committee interlocks and the contagion of accounting policy choices: evidence from special items

Review of Accounting Studies - We document that the initiation of audit committee interlocks is associated with contagion in reported special items. We argue that this is, in part, attributable to...     

The accuracy of IPO earnings forecasts in Thailand and their relationships with stock market valuation

In order to help reduce information asymmetry between managers and prospective investors, IPO prospectuses in Thailand are required to publish managers' forecasts of the forthcoming year's earnings. This type of direct disclosure is especially important in a developing economy such as Thailand where financial intermediaries and information vendors are relatively sparse, and where investors are rarely professionals. Our results demonstrate that managers' earnings forecasts are much more accurate than extrapolations of historical earnings. We show that forecast accuracy is related to underpricing, and it has a directional, but not statistical, association with one-year stock returns and one-year wealth relatives.     

Welfare Policy: Cash Versus Kind,Self-Selection and Notches

This paper investigates second-best allocations where the government lacks full information about consumer types, and how such allocations may be implemented through notch schemes. Thus, we provide another rationale for notches in addition to that investigated by Blinder and Rosen (1985). We use a model of Blackorby and Donaldson (1988), extending their results to more general preferences and to more general tax-subsidy instruments (piecewise linear, rather than linear). We argue that observed policies are sometimes of this nature: In-kind subsidies that are available only if consumption equals or exceeds a particular amount have been used in practice, in housing, and medical care.     

PREMATURE MORTALITY AND POVERTY MEASUREMENT

There is a glaring paradox in all commonly used measures of poverty. The death of a poor person, because of poverty, reduces poverty according to these measures. This surely violates our basic intuitions of how poverty measures should behave. It cannot be right in concept that differentially higher mortality among the poor serves to reduce poverty. This article begins the task of developing poverty measures that are not perversely mortality sensitive. A family of measures is proposed that is an intuitive modification of standard poverty measures to take into account the fact that the rich live longer than the poor.