The college admissions problem is not equivalent to the marriage problem

Two-sided matching markets of the kind known as the “college admissions problem” have been widely thought to be virtually equivalent to the simpler “marriage problem” for which some striking results concerning agents' preferences and incentives have been recently obtained. It is shown here that some of these results do not generalize to the college admissions problem, contrary to a number of assertions in the recent literature. No stable matching procedure exists that makes it a dominant strategy for colleges to reveal their true preferences, and some outcomes may be preferred by all colleges to the college-optimal stable outcome.     

Don't stop with the one-stop shop: Foreign investment in a liberalizing third world

Developing countries around the world are liberalizing their trade and investment regimes. This paper, based on a multiyear, multicountry study, assesses the likely impact of these new trade and investment policies on foreign investment projects. It points to the divergence between rhetoric and reality that often characterizes the new investment policies and institutions. Indeed, the study suggests that, for many foreign investors, changes in trade policy are likely to be more significant than changes in investment policy. The paper provides recommendations to investors on how to take advantage of the new policies they are likely to encounter in developing countries. © 1993 John Wiley & Sons, Inc.     

The Role of Speculation and Information in the Early Evolution of the United States Ostrich Industry: An Industry Case Study

The U.S. ostrich industry was introduced in the 1980s and experienced rapid expansion in the late 1980s and early 1990s. Breeding stock prices rose rapidly and subsequently plummeted during 1993–1995. High prices are to be expected in the introductory stage of an industry. However, the magnitude of prices in the ostrich industry is likely due to overestimates of ostrich productivity and future demand for ostrich products, as well as speculation in the ostrich market. This paper discusses the evolution of the industry from the mid-1980s to the present.     

Consumption and Wealth in Australia

This paper examines the relationship between consumption and wealth in Australia. We find a steady-state relationship between non-durables consumption, labour income and aggregate household wealth for the period 1988–1999. We also find that changes in both non-financial and financial assets have significant but different short-run and long-run effects in dynamic consumption models. Finally, we place our results within the broader empirical literature and examine whether they are consistent with standard theories of consumption.     

The effect of self-selection bias on the testing of a stock price reaction to management's earnings forecasts

This study examines the inferential bias due to the failure to control for self-selection when studying the market's reaction to management earnings forecasts. The analysis is conducted by controlling for self-selection and comparing the results to those obtained when self-selection is not controlled. This comparison suggests that the overall inference of a market reaction to the management forecast issuance does not change. However, the statistical significance declines when self-selection is considered. Since the issuance of a management forecast is an obvious self-selection, the results of this study suggest that self-selection should be considered and evaluated in quasi-experimental studies in accounting and finance.     

Weak versus strong domination in a market with indivisible goods

The core of a market in indivisible goods can be defined in terms of strong domination or weak domination. The core defined by strong domination is always non-empty, but may contain points which are unstable in a dynamic sense. However, it is shown that there are always stable points in the core, and a characterization is obtained. The core defined by weak domination is always non-empty when there is no indifference, and has no instability problems. In this case, the core coincides with the unique competitive allocation.