Local corporatism: Leeds and its chamber of commerce

Non‐domestic ratepayers may be disenfranchised, but they need not be without influence on their local council, as a case study of Leeds Chamber of Commerce shows     

Introduction to an Unpublished Note by Nicholas Kaldor & Joan Robinson

Some have argued for the priority of needs in moral and development theory, on the grounds that people have conflicting and incommensurable values and conceptions of the good. In this paper, I concentrate on one version of this view, that due to John Rawls. Rawls' view is that a person's advantage should be evaluated in terms of certain primary goods which are citizens' needs. I outline a variation on James Griffin's account of well-being, which involves certain values that make any human life better—prudential values. I argue that such values are commensurable, and that the account is consistent with pluralism. The discussion supports and helps us to understand various criticisms of Rawls. It also suggests that one argument for the priority of needs in development theory is invalid.     

A Stochastic Dynamic Programming Analysis of Farmland Investment and Financial Management

This paper develops a multiperiod investment portfolio model that includes risky farmland, risky and risk‐free nonfarm assets, and debt financing on farmland in the presence of transaction costs and credit constraints. The model is formulated as a stochastic continuous‐state dynamic programming problem, and is solved numerically for Southwestern Minnesota, USA. Results show that optimal investment decisions are dynamic and take into account the future decisions due to uncertainty, partial irreversibility, and the option to wait. The optimal policy includes ranges of inaction, states where the optimal policy in the current year is to wait. The risk‐averse farmer makes a lower investment in risky farmland reflecting risk‐avoiding behavior. We find that, in addition to risk aversion, the length of the planning horizon affects risk‐avoiding behavior in investment decisions. In contrast to a static model, changes in the riskiness of returns affect optimal investment decisions even when the decision maker is risk neutral. Finally, we find that higher debt financing on farmland is optimal when risky nonfarm assets can be included in the optimal investment portfolio and that the probability of exiting farming increases with the risky nonfarm investment. Dans le présent article, nous avons élaboré un modèle de portefeuille multipériode composé d'actifs agricoles risqués (terres), d'actifs non agricoles risqués et sans risque ainsi que de financement par emprunt de terres comprenant des coûts de transaction et des contraintes de crédit. Le modèle a été formulé comme un problème de programmation dynamique stochastique en temps continu et a été résolu de façon numérique pour le sud‐ouest du Minnesota, aux États‐Unis. Les résultats ont montré que les décisions optimales d'investissement sont dynamiques et qu’elles tiennent compte des décisions futures en raison de l'incertitude, de l'irréversibilité partielle et du choix d'attendre. La politique optimale inclut des plages d'inaction et des situations où la politique optimale de l'année en cours doit attendre. L'agriculteur risquophobe investit peu dans des actifs fonciers risqués ce qui traduit un comportement d'évitement des risques. Nous sommes arrivés à la conclusion que la longueur de l'horizon de planification, en plus de l'aversion pour le risque, influe sur le comportement d'évitement des risques au moment de prendre des décisions d'investissement. Contrairement au modèle statique, les changements dans les risques de rendements influent sur les décisions optimales d'investissement même si le décideur est indifférent au risque. Finalement, nous avons trouvé que le financement par emprunt pour des terres agricoles est optimal lorsqu’il est possible d'inclure des actifs non agricoles risqués dans le portefeuille optimal et que la probabilité de quitter l'agriculture augmente en présence d'investissements non agricoles risqués.     

An Interview with Barbara Bergmann: Leading feminist economist

Barbara Bergmann, Emerita Professor of Economics at both the American University and the University of Maryland, has been a leader in the development and establishment of feminist economics, in scholarly, policy and organizational capacities. Professor Bergmann is particularly known for her crowding model of discrimination. She is the author of an excellent, accessible undergraduate textbook, The Economic Emergence of Women (1986) . She has authored several policy-oriented books, including In Defense of Affirmative Action (1996a), Saving Our Children from Poverty: what the United States can learn from France (1996b) , and What Child Care System for America? (2000). Professor Bergmann is past president of the Society for the Advancement of Socioeconomics, the Eastern Economic Association and the International Association for Feminist Economics. She received her PhD in economics from Harvard in 1959. This interview was conducted at the ASSA meetings in Chicago on 4 January 1998.     

The Value Relevance of Accounting Information during a Financial Crisis: Thailand and the 1997 Decline in the Value of the Baht

This study addresses whether the financial turmoil surrounding the devaluation of the baht affected the value relevance of Thai accounting information. Our results suggest a decline in the value relevance of Thai book values and earnings following the devaluation. Prior to mid 1997 the Bank of Thailand pegged the value of the baht to a basket of currencies of which 80% was weighted to the US dollar. In response to pressure by currency speculators the bank abandoned its peg on July 2 1997 in favor of a managed float. The devaluation was followed by volatile exchange rates. The change in value relevance of accounting information after the devaluation may be attributable to the initial recognition of foreign exchange losses and the subsequent recognition of foreign exchange gains as exchange rates fell and then recovered.     

Computer support for work across space,time, and social worlds

Collaboration is at the heart of the academic enterprise; proposals for systems such as the National Science Foundation's “National Collaboratory”; or Apple Computer's “Knowledge Navigator”; seek to support these collaborative efforts by means of a variety of computing technologies. We examine the assumptions of the model of collaborative work behind such proposals and suggest ways to extend that model. We draw on a case study of collaborative efforts in classical scholarship in order to explore more fully the existing modalities of academic collaboration as it actually occurs. The development of a broader understanding of collaborative activities will enable us to address more effectively the challenge of constructing systems to support collaborative work.     

Central Mandates and Local Incentives: The Colombia Education Voucher Program

In decentralized education systems programs that promote centralmandates may have to be devolved to local governments, communities,and providers. When participation by local governments and providersis voluntary rather than compulsory, the determinants of programplacement are important in predicting potential benefits toindividuals. This article analyzes incentives for municipalitiesand private schools to participate in Colombia's voucher program.It finds that the demand for secondary education relative tothe capacity of public schools and the availability of spacesin private schools in the municipality were key predictors ofmunicipal participation, whereas the number of underserved studentshad a nonlinear effect on participation. Schools whose educationalquality was moderate and charged moderate tuition fees werethe most likely to participate; the program was less attractiveto schools whose quality and fees were high and to schools whosequality and fees were low.     

Going private transactions,bondholder returns,and wealth transfer effects

We examine how buyout activity and deal characteristics drive bondholder returns and the wealth transfer effects between bondholders and stockholders in going private transactions from 1981 to 2006. We find that various deal characteristics are major determinants of the cross-sectional variation in bondholder returns. In particular, a single private equity acquirer mitigates bondholder losses. On the other hand, bondholders have larger losses when a reputable buyout firm is involved in the deal. Bondholders experience losses in the 1980s and 2000s, but enjoy gains in the 1990s. Our findings remain robust to consideration of deal financing, relative cost of credit, and level of market overheating. We find a negative and significant relationship between stockholder and bondholder wealth effects, which supports the wealth transfer hypothesis.