Money demand interest elasticity and monetary policy effectiveness

This paper provides a theoretical basis for discretionary monetary policies being less effective as money demand is more sensitive to interest rates and less effective in checking recession than inflation. It cites speed of response as an important dimension of effectiveness in the policies, arguing that lagged responses diminish effectiveness by increasing prospects for destabilizing performances. It then illustrates how responses can be less rapid as money demand is more sensitive to interest rates and, providing that money demand interest sensitivity exceeds a threshold value, less rapid when the economy is short of full employment.     

The rise of cooperation in correlated matching prisoners dilemma: An experiment

Recently, there has been a Renaissance for multi-level selection models to explain the persistence of unselfish behavior in social dilemmas, in which assortative/correlated matching plays an important role. In the current study of a multi-round prisoners’ dilemma experiment, we introduce two correlated matching procedures that match subjects with similar action histories together. We discover significant treatment effects, compared to the control procedure of random matching. Particularly with the weighted history matching procedure we find bifurcations regarding group outcomes. Some groups converge to the all-defection equilibrium even more pronouncedly than the control groups do, while other groups generate much higher rate of cooperation, which is also associated with higher relative reward for a typical cooperative action. All in all, the data show that cooperation does have a much better chance to persist in a correlated/assortative-matching environment, as predicted in the literature. Electronic Supplementary Material Supplementary material is available in the online version of this article at . JEL Classification B52, C91, D74     

Measuring Effective Tax Rates in the Presence of Multiple Inputs: A Production Based Approach

We suggest a new method for comparing tax regimes acrossjurisdictions. The approach aggregates taxes on inputs by focussingon production, rather than investment, decisions. Taxes on variousinputs affect production decisions by increasing marginal costs.By calculating the difference between the tax-inclusive and tax-exclusivemarginal cost of production, we determine the effective excisetax rate on marginal costs implied by all of the various taxesimposed upon the firms inputs. The effective tax rate on marginalcosts provides a convenient summary measure of the potentialimpact of taxes on all inputs on production location decisions.     

The Role of Culture in Shaping Perceptions of Discrimination among Active Duty and Reserve Forces in the US Military

Organizational culture allows workers in an organization to develop a shared understanding about events that occur within the organization. The US Army has developed its own culture, which allows it to pursue a variety of challenges that it must face. Today’s US Army relies heavily on citizen soldiers, consisting of the Army Reserve and the National Guard. These soldiers come from a different background than the active component soldiers, and as a result, interpret actions taken by the organization and its leaders differently, based on the subculture from which these soldiers come. The present paper examines the effects that culture and status have on perceptions of discrimination and fairness during a recent US military operation. An historical frame of reference of similar experiences in previous military operations is provided, and implications for organizations that employ both permanent and temporary workers are discussed.     

A Research Agenda for Examining the Role of Compensation Consultants in the Executive Pay Process

Executive compensation has risen dramatically during the past several years. In some cases, organizations have lost money and value, while their executives have received generous if not excessive compensation. The business press has brought this issue to the attention of the American public and Congress, resulting in increasing examination of all parties involved in the pay-setting process. The selection and use of compensation consultants has come under particular scrutiny. Critics have argued that these firms suffer from serious conflicts of interest, such that they may be partly responsible for the rise in pay and the decoupling of pay from performance. Academic attention to the impact of compensation consultants in the pay-setting process, however, has been lacking, and thus most of the analysis of the subject is based on anecdotal evidence and superficial arguments. In the interest of fostering a more rigorous approach, this paper presents several theoretical perspectives that could be used to examine and explain the influence of compensation consultants on executive compensation. We present these theories in light of a specific case and suggest directions for future research.     

The Impact of Inflation Measures on the Real Returns and Risk of U.S. Stocks

Using different inflation measures produces economically significant differences in both the inflation record and inflation‐adjusted stock returns. We introduce a more consistent measure of the monthly Consumer Price Index (CPI) inflation rate to better measure real returns over 1913–2004, for which the official CPI exists. We also extend the series backward to 1871 on a monthly basis, an important addition to the data series. We analyze the impact of inflation on the real standard deviation of stock returns and find that, in contrast to the results for geometric mean returns, inflation adjustments have little impact on estimates of return variability.     

Case Studies in Job Analysis and Training Evaluation

Job analysis identifies work behaviors and associated tasks that are required for successful job performance. Job analysis is widely recognised as a starting point in a needs analysis for training and development activities. The content validity justification for basing training on a job analysis can be used for training evaluation. Effective training should only have an impact on job tasks significantly related to successful job performance. This article presents two examples of the use of job analysis for training evaluation: evaluation of an information technology certification and evaluation of training for a professional association of librarians.