PRODUCT AND LABOUR MARKETS IN WAGE DETERMINATION: SOME AUSTRALIAN EVIDENCE

The study is concerned with the extent to which workplace wage drift is influenced by establishment-specific or occupation-specific factors. It demonstrates, by analysis of variance of pay data from a survey of 44 occupations in 198 workplaces, that the sources of variation are predominantly establishment-specific. There is evidence of a link between the amount of discretion an employer exercises in the labour market and the degree of concentration in his product market. It is argued that discussions of pay determination have been unduly preoccupied with labour market processes and have neglected the variation in employer behaviour arising from differences in product market.     

Do I have to go shopping again? A theory of choice with movement costs

In this model, the standard theory of the one-person household is extended into space and time. The theory is extended into space by imposition of a real trip cost on the act of purchase, separate from the money price of commodities. It is extended into time by imposition of a real cost of storage (represented by “deterioration”) on the stocks of goods held in the household between shopping trips. The necessity for storage permits the theory to include an endogenous choice of capacity to store as well as choices among consumption, leisure, and shopping trip frequency. By use of duality theory, the comparative static effects of price, wage, and trip costs are examined. Production and transformation within the household are integrated into the model and shown to be covered by the dual approach.     

Return on advertising: Another approach

With companies becoming more cost conscious the need for a more effective method of measuring the Return on Advertising is becoming more crucial. Previous attempts at measuring the return on advertising have focused on measuring either the sales effect or the communicative effect of an advertising campaign. However, both methods of measurement leave something to be desired and yet both techniques have strong points. This article proposes that one should synthesize the best elements of both measurement techniques into an objective design that will enable the practitioner to determine his ROA.     

Business ethics: Some observations on the relationship between training,affiliation, and disciplinary drift

This paper undertakes an inquiry into the relationship between the disciplinary training of business ethicists, their institutional affiliations, those whose work they cite, those with whom they collaborate, and — to some degree — the kind of work they do. It is intended as a response to both the historic injunction that we examine ourselves and to what is seen as the considerable disarray of the field.Barry Castro has been at Grand Valley since 1973. His previous work has appeared in theAmerican Economic Review, theBusiness Ethics Quarterly, Change, theGrand Valley Review, theHarvard Educational Review, theJournal of Business Ethics, theJournal of Political Economy, Soundings and other journals. His book,Business and Society: A Reader in The History, Sociology and Ethics of Business (Oxford) is forthcoming.     

Human information processing research in accounting: The state of the art in 1982

Awareness of the importance of human information processing research to accounting issues has increased dramatically since 1977. As a result, this literature has expanded in volume and addresses a larger spectrum of accounting problems. Further, it incorporates a wider variety of theories and methodologies. This paper draws upon the framework provided by Libby and Lewis (1977) to synthesize and evaluate accounting research conducted since 1977 using the lens model, probablistic judgment, predecisional behavior, and cognitive style approaches. In addition, the impact of the research on practice and some directions for future research are discussed.     

Effective protection and exchange-rate determination

Considerable research interest has entered on the implications for exchange-rate determination of fluctuations in intermediate goods prices ang changes in tariff protection. This paper draws together the strands of this literature by examining the role of effective protection in exchange rate determination. A disaggregated portfolio balance model of the open economy is used to analyze the determination of real and nominal exchange rates in the presence of rational expectations. Additionally, it is used to explore the implications for resource allocation of changes in the effective rate of protection in a country capable of influencing its terms of trade.     

Usefulness of the newly revised composite index of leading indicators as a quantitative predictor

This paper compares the performance of the current and earlier versions of the Commerce Department's Composite Index of Leading Indicators as predictors of quantitative (percentage) changes in real GNP. Almon-type distributed lag functions are estimated over a sample period covering the years 1948–1970. Tests of predictive accuracy focus on the post-sample period 1971–1975. The results, in terms of three commonly accepted measures of forecast accuracy (root mean square error, mean absolute error and Theil's U), indicate that the new index performs marginally better than the best of the older versions.     

Central bank cooperation under the interwar gold standard

The limits of cooperation and the failures of leadership are recurrent themes in historical accounts which seek to explain the instability of the interwar gold standard. Yet these themes are wholly incompatible with received models of the gold standard. In an attempt at reconciliation, this paper has presented a simple model of central bank interaction under the interwar gold standard, and used it to interpret Anglo-French financial relations following Britain's return to gold. The model is inspired by Keynes' and Norman's comment that the interwar system can be understood as a competitive struggle for gold. It shows that if two central banks play a noncooperative game in which they both seek to augment their gold reserves, they will tend to raise their discount rates above the level consistent with price stability, depressing incomes at home and abroad. While central bank policy was but one factor at work in the world economy in the 1920s, the model is suggestive when applied to a period marked by historically high discount rates, conflicts over the distribution of gold, and steady deflation culminating in a Great Depression.