Separation of the redistributive and allocative functions of government: A public choice perspective

The implications of not separating the redistributive and allocative functions of government are examined from a public choice perspective. Many democratic governments lump transfers and public services into a single unified budget. This can distort voter perceptions of the marginal cost of public services relative to the marginal tax price embodied in the taxing institutions employed to generate public revenue. If the median voter's perception of marginal cost is affected, the majority rule outcome with respect to public goods spending will be altered correspondingly.     

The Household, Time Use and Tax Policy

This paper is concerned with modelling household decisions andthe welfare effects of tax policy. It seeks to emphasise theimportance of a model that incorporates household productionand can take account of the evident female labour supply heterogeneityacross two-parent families. If, after having children, someproportion of households substitute domestic for market laboursupply, the income and consumption variables used as the taxbase in most countries may be poorly correlated with livingstandards. Taxes and welfare programs based on these variablesmay increase inequality by shifting the overall tax burden tolow and middle wage families with both partners in work, awayfrom families with much higher wages and in which only one memberworks to earn the same joint market income. The paper combinesdata on time use, income, taxes and benefits to show how theytrack female labour supply over the life cycle, resulting inmuch higher tax burdens on two-earner households. (JEL D13,D91, H31, J22)     

Actinomycosis of the retroperitoneum and an extremity: CT features

A patient presenting with thigh and flank masses and back pain for 3 months proved to have actinomycosis involving the retroperitoneum and quadriceps muscle. Retroperitoneal involvement without intraperitoneal disease is rare. Computed tomography (CT), however, showed disease transgressing adjacent anatomic compartments with direct extension through the body wall and involvement of adjacent bony structures which is characteristic of actinomycosis.     

The effects of industry growth and strategic breadth on new venture performance and strategy content

A sample of 123 independent new ventures was classified into four industry growthlstrategic breadth categories. High growth industry environments were found to provide a favorable environment for new ventures to achieve sales growth; however, the highest sales growth rates were exhibited by new ventures pursuing broad breadth strategies in high growth industries. One-way ANOVA and contrast tests were also used to identify whether specific strategic variables varied across the four industry growth/strategic breadth combinations. New ventures in high growth industries chose to enter on a larger, more aggressive scale and placed more emphasis on new product development than those entering low growth industries. Broad breadth strategy ventures had higher levels of advertising and promotion expenses and placed greater emphasis on the dominance of marketing expertise in their top management team, developing new channels of distribution, and on brand name recognition. Ventures pursuing focus strategies emphasized specialty products and were less cost conscious.     

Exchange Rate Exposure at the Firm and Industry Level

Previous work on the exposure of firms to exchange rate risk has primarily focused on U.S. firms and, surprisingly, found stock returns were not significantly affected by exchange‐rate fluctuations. The equity market premium for exposure to currency risk was also found to be insignificant. In this paper we examine the relation between Japanese stock returns and unanticipated exchange‐rate changes for 1,079 firms traded on the Tokyo stock exchange over the 1975–1995 period. Second, we investigate whether exchange‐rate risk is priced in the Japanese equity market using both unconditional and conditional multifactor asset pricing testing procedures. We find a significant relation between contemporaneous stock returns and unanticipated yen fluctuations. The exposure effect on multinationals and high‐exporting firms, however, is found to be greater in comparison to low‐exporting and domestic firms. Lagged‐exchange rate changes on firm value are found to be statistically insignificant implying that investors are able to assess the impact of exchange‐rate changes on firm value with no significant delay. The industry level analysis corroborates the cross‐sectional findings for Japanese firms in that they are sensitive to contemporaneous unexpected exchange‐rate fluctuations. The co‐movement between stock returns and changes in the foreign value of the yen is found to be positively associated with the degree of the firm's foreign economic involvement and inversely related to its size and debt to asset ratio. Asset pricing tests show that currency risk is priced. We find corroborating evidence in support of the view that currency exposure is time varying. Our results indicate that the foreign exchange‐rate risk premium is a significant component of Japanese stock returns. The combined evidence from the currency exposure and asset pricing analyses, suggests that currency risk is priced and, therefoe, has implications for corporate and portfolio managers.     

Effects of accountability on symbolic information search and information analysis by organizational buyers

Most studies of the organizational buying process assume that buyers acquire and use information “prosocially”—to make better decisions and promote their company’s welfare. The authors propose, however, that demands to account for their behavior causes organizational buyers to also gather and use information for political purposes—to protect their own self-interest. The authors present the results of an empirical study that investigates the extent to which four types of accountability—informal, official, process, and decision accountability—result in political (or symbolic) information search and prosocial information analysis by organizational buyers. Study findings suggest that buyers accountable to superiors and those accountable to subordinates or peers engage in more symbolic information search. Buyers accountable for their decision-making process analyze information more extensively. Surprisingly, buyers accountable for decision outcomes neither search for symbolic information nor analyze information more extensively. She received her Ph.D. from the University of North Carolina at Chapel Hill. Her research interests include industrial buying behavior, business-to-business relationships, and international marketing. She has published articles in theJournal of International Marketing and theJournal of Macromarketing, as well as various conference proceedings. He received his Ph.D. from Northwestern University. His research interests are in the marketing strategy and public policy areas. His work has been published inJournal of Marketing, Journal of Consumer Research, Journal of Public Policy and Marketing, Journal of Advertising Research, and several other journals.     

ON INTERNAL MARKETS IN THE N.H.S.

Professor Alain Enthoven has suggested the development of 'internal markets' in the NHS Patricia Day and Professor Rudolf Klein, of the University of Bath, argue for the encouragement of latent potential within the NHS Nick Bosanquet, of the University of York, reinforces their call for increased managerial discretion to improve efficiency Dr David Green, of the IEA, insists that commercial incentive will have a more bracing effect than continued government control     

The Insolvent Thrifts of 1982: Where Are They Now?

In 1982, 237 thrifts were GAAP (Generally Accepted Accounting Principle) insolvent. By 1987, 92 of these were either merged or closed and 77 remained insolvent. The remaining 68 were GAAP solvent with an average GAAP-to-total-assets ratio of 5.6%. The purpose of this paper is to identify the factors that affected the probability of solvency for the 1982-insolvent thrifts over the period 1983–1987.
To identify these factors, the probability of insolvency is modeled in each year between 1983 and 1987 using logistic regression. Because a thrift can earn its way out of insolvency or raise outside capital, the probability of solvency is a function of the infusion of outside capital along with balance sheet and income statement ratios reflecting the thrifts earning ability. The only variable consistently significant in each year is the variable reflecting the raising of outside capital.