The haw par affair and the reporting of related party transactions

It is generally recognised that managers are concerned with how transfer prices should be determined. This paper deals with an extension of this concern, namely, how transactions between related parties should be reported in published financial statements. The mode of reporting is regulated by national accounting standard which are in turn strongly influenced by the standards issued by the International Accounting Standards Committee. This paper examines theproposed International Accounting Standard on Related Party Transactions by applying the standardhypothetically to the facts of a major court case on the subject.The author is a Senior Lecturer with the School of Accountancy at the National University of Singapore     

Lévy term structure models: No-arbitrage and completeness

The Lévy term structure model due to Eberlein and Raible is extended to non-homogeneous driving processes. The classes of equivalent martingale and local martingale measures for various filtrations are characterized. It turns out that in a number of standard situations the martingale measure is unique.Received: May 2004, Mathematics Subject Classification (2000): 60H30, 91B28, 60G51JEL Classification: E43, G13Work supported in part by the European Communitys Human Potential Programme under contract HPRN-CT-2000-00100, DYNSTOCH.     

Monopoly pricing with negative network effects: The case of vaccines

We study the market for vaccinations considering income heterogeneity on the demand side and monopoly power on the supply side. A monopolist has an incentive to exploit the external effect of vaccinations and leave the poor susceptible in order to increase the willingness to pay the rich. Even the possibility of price discrimination does not remove this incentive. We demonstrate that the weaknesses of standard policy measures are mitigated when income heterogeneity is taken into account. This offers an efficiency based rationale for distribution oriented national or international public health interventions.     

Finite project life and uncertainty effects on investment

This paper revisits the important result of the real options approach to investment under uncertainty, which states that increased uncertainty raises the value of waiting and thus decelerates investment. Typically in this literature projects are assumed to be perpetual. However, in today's economy firms face a fast-changing technology environment, implying that investment projects are usually considered to have a finite life. The present paper studies investment projects with finite project life, and we find that, in contrast with the existing theory, investments may be accelerated by increased uncertainty. It is shown that this particularly happens at low levels of uncertainty and when project life is short.     

Hat die Einführung der Abgeltungsteuer Aktienkurse beeinflusst?

This paper discusses findings of a current research project whose results indicate that the implementation of the German flat withholding tax on capital gains at the turn of the year 2008–09 led to a temporary but significant increase in trading volumes and share prices on the German stock market. As this capital gains tax reform had already been announced in 2007, corresponding market reactions imply a delayed dissemination of tax information. Hence, our results raise some doubt regarding the information-processing capacity of stock markets. This holds true especially in the following circumstances: 1) extensive trading activities of individual investors with limited information access and attention; 2) a strong focus by a large group of individual investors to a limited number of trading days (herd behaviour); and 3) limited liquidity in the market (e.g. stocks with a small market capitalisation).     

Towards a ‘Post‐Neoliberal’ Mode of Housing Regulation? The Israeli Social Protest of Summer 2011

In the summer of 2011, after decades of virtually uncontested neoliberalization, Israel was swept by unprecedented protests against the rising cost of living, social inequality and, most particularly, escalating housing prices. Within two weeks, a small protest camp established on Rothschild Boulevard in Tel Aviv had grown into a mass movement involving hundreds of thousands of people across the country. Given an ambivalent sense of the significance of urban movements in bringing about social change, the aim of this article is to analyze whether the Israeli social protest was able to push forward a post‐neoliberal mode of housing regulation. Building on a framework developed by Brenner, Peck and Theodore to grasp transformations in the landscape of regulatory restructuring, this article argues that the movement has indeed achieved a far‐reaching hegemonic shift in public discourse and also become an important driver in promoting regulatory experiments. Despite its achievements, however, the movement was unable to challenge the Israeli ‘rule regime' of neoliberalization, on account of two structural constraints that were shielded by the most powerful state apparatuses: the commodity character of housing; and a neoliberalized land regime, where state‐owned land is treated as a profit machine for public finance.     

Konjunkturpakete versus Austeritätspolitik

We evaluate the impact of fiscal stimulus measures during the financial crisis and the subsequent turn to fiscal consolidation during the Euro Area crisis. Based on an exploitation of the information contained in systematic forecast errors, we identify a robust and substantial underestimation of the multiplier effects linked to these measures. Moreover the effects are highly persistent, pointing to hysteresis effects of fiscal measures during deep crises.