A proposal for the reduction of domestic price variability during the phase-in period of trade liberalization

Countries replacing existing trade barriers with a fixed tariff may find that domestic price variability rises to politically unacceptable levels. This paper shows how the tariff-reduction formula can be modified to delay the transmission of world price variability. The importance of this modification is demonstrated by a simple two-country, one-commodity simulation model. The simulation results show that tariffication of existing EC variable levies/export subsidies would dramatically increase price variability within the European Community and that the transmission of this variability can be delayed by slightly altering the ***adjustment formula.     

Analysts’ and Investors’ Reactions to Consistent Earnings Signals

We investigate (1) whether the trajectory of the current‐quarter earnings expectation path (defined by the signs of the forecast revision and the earnings surprise) provides information about future firm performance, and (2) the extent to which analysts and investors react to that information. Our results indicate that analysts underreact more to earnings information revealed by consistent‐signal earnings expectation paths than to earnings information communicated by inconsistent‐signal expectation paths. We also find that the current earnings expectation path provides incremental explanatory power for future abnormal returns, even after controlling for the sign and magnitude of the earnings surprise. Overall, our evidence is consistent with underreaction stemming from analysts’ and investors’ bias in processing the information in consistent‐signal earnings expectation paths.     

The college graduate and his first job

To determine MBA graduates' subjective responses to their first jobs and the areas of their greatest dissatisfactions, the authors queried a group about ten factors: advancement opportunity, challenging work, responsibility, salary, supervision, location, job prestige, training programs, fringe benefits, and security.     

The Short Sale Stigma

Despite a recent upturn, housing prices remain in flux in most cities nationwide. Lenders are still left dealing with a glut of distressed properties. They can choose to foreclose on the property or allow the owner/mortgagor to attempt to sell the property for less than the outstanding balance of the mortgage in a short sale agreement. The best way to clear the market of distressed properties is an important policy question. This is the first study to examine not only the price and time on market effect of being a short sale but also whether the short sale process itself creates a market stigma.     

Minimum Service Requirements, Limited Brokers and Menuing of Services

In the past few years, many states have responded to the increasing number of limited service brokers by passing minimum service requirements. Limited service brokers can be viewed as those brokers who are offering their marketing and representative services A La Carte as opposed to the more traditional full-services brokers offering of a Table D??h?te (one size fits all) for their services. Supporters claim the legislation is necessary to protect consumers who are otherwise hurt by limited service brokers, but critics assert that this legislation is anti-competitive and not necessary. This study provides empirical evidence that sellers using limited service brokers experience a trade-off between a higher selling price and longer marketing spans with accompanying lower probabilities of finding a buyer during a given marketing period.