Are baseball players paid their marginal products?

Previous researchers found that baseball players under the reserve clause had been paid considerably less than their contributions to club revenues. We ask, has the new contractual system of free agency and final-offer arbitration brought baseball salaries into line with marginal revenue products? Using public data for the 1986 and 1987 seasons, our basic answer is yes, major league salaries generally coincide with estimated marginal revenue products, though significant deviations exist. Experienced players are paid in accord with their productivity; young players, however, are paid less than their marginal revenue product, on average. This result is closely related to the market structure within baseball.     

Achieving greater financial independence for Latin America: A proposal

Financial intermediation development in Latin America illustrates the various ways in which the financial system may influence growth, efficiency, and welfare. Though the financial repression of earlier years has begun to be alleviated, much of the resulting growth of finance in Latin America has been concentrated within the countries or between them and the now-developed regions. Intraregional financial flows have been largely overlooked as an avenue for the increase of financial savings and of regional control over the mobilization and allocation of financial resources. This paper proposes the creation of new instruments designed to further the development of financial intermediation on a regional basis. A Latin American Development Bond programme is suggested which would increase the level of voluntary financial savings for regional development purposes and would reduce the present triangulation of credit flows through financial intermediaries outside of Latin America.     

Food and Tourism: Towards an Understanding of Sustainable Culture

Studies of the social significance of food and eating have mostly been left to social anthropologists and social historians. Often it has not appeared as part of the cultural environment that is offered as a tourist package. If a culture is to prove sustainable in the face of tourism, then traditional and ethnic foods must be preserved along with other art forms. This pilot study shows that in a tourist area of Bali (a) visitors are not necessarily being offered what they want, and (b) traditional food is not being preserved.