Deficit financing,liquidity, and the government budget constraint

This article presents a macroeconomic model in which government deficits are bond financed and the stock of bonds may affect both expected income and liquidity. If either of these effects exists, then comparative statics analysis requires the government budget to be balanced. Temporary divergences from a balanced budget and changes in the maturity structure of the government debt may be analyzed in terms of changes in the stock of bonds. It is shown that traditional fiscal and monetary policies may have a perverse effect; that to ensure effective policy, deficit financing and open market operations should be avoided; and that only policies involving a balanced budget or the financing of deficits or surpluses through changes in the stock of money should be undertaken.     

Fit performance of several programs used for non-linear least squares problems

Seven computerprograms for non-linear regression or curve fitting problems are compared. The comparison of the programs, running in different computing centra, is restricted to the fit performance. Six model functions are fitted according to the least squares criterion to data series, arising from practical work. The special least squares minimization programs turned out to be better suited for these problems than general optimizing programs.     

The Resale Price Maintenance Struggle

A bstract Bills introduced in the 100th and 101st Congresses would amend the Sherman Act in regard to retail competition Their two key provisions would seek to (1) alter the standard of proof currently used for the establishment of illicit vertical price arrangements and (2) codify into law the judicially-established per se rule against resale price maintenance agreements The first provision seeks to overcome the effect of the establishment by the Supreme Court , in its Monsanto decision, of what is viewed as an illogical and impossible burden of proof on plantiffs seeking damages in resale price maintenance cases The second merely incorporates into statutory law the court's declarations in the Dr Miles case of the per se illegality of resale price maintenance agreements Arguments for and against this legislation are discussed and recent developments are examined     

Hypocrisy pay

Emotional labor—putting on an act asrequired explicitly orimplicitly in work situations-is very often psychologically, emotionally, and mentally damaging to most employees. As for soldiers in wartime who receive combat pay, it is suggested that such employees be specially compensated for their emotional labor with hypocrisy pay. Another solution is to select only those who are immune to such stress for jobs involving emotional labor—an ideal that probably cannot be achieved in all cases. Another assessment is that such special compensation is unwarranted.     

Law without justice: The dilemmas of formalization and fairness in the legalistic organization

There is growing evidence of a litigation mentality rampant in organizations, which has created a legalistic mindset in many managers. Increasingly, managerial decisions are becoming dominated by a concern for what is legally defensible at the expense of broader social considerations such as justice and fairness. The papers in this special issue explore how this legalistic mindset has created new organizational and social dilemmas, and situations of law whithout justice.