Absolute and Comparative Advantage, Reconsidered: The Pattern of International Trade with Optimal Saving

The paper obtains new results about absolute and comparative advantage, by introducing international technological differences into the three–sector Findlay–Komiya and two–sector Oniki–Uzawa–Stiglitz models of open–economy growth with optimal saving. For example, if a country has the same Hicks–neutral advantage in all industries, it exports the capital–intensive tradable, even though the technological advantage is only absolute rather than comparative. Alternatively, even a small comparative advantage in some good is sufficient for the advanced country to export this product, regardless of relative factor supplies. In either case, the fundamental reason for trade is technological superiority rather than factor abundance.     

Unemployment and Growth in the Long Run: an Efficiency‐Wage Model With Optimal Savings*

An efficiency‐wage model of steady‐state equilibrium with labor‐augmenting technical progress is developed to explore the long‐run relationship between unemployment and growth. The rate of productivity growth is either specified exogenously or determined endogenously. In both cases, we preserve key results of the Shapiro–Stiglitz efficiency‐wage analysis without growth. Our model, however, also yields some striking new results. For instance, an exogenous increase in the growth rate may raise the rate of efficiency‐wage unemployment, and a once‐for‐all rise in the labor force may reduce the unemployment rate in the endogenous‐growth case.     

The transmission of inflation in a small economy: an empirical analysis of the influence of US monetary disturbances on Canadian inflation, 1962–1980

The paper examines the transmission of inflation in Canada during 1962–1980 using an empirical methodology which is very flexible in determining the direction of casuality and the shape of distributed lag effects. The paper finds that US monetary growth exerted an important effect on Canadian inflation during both fixed and flexible exchange-rate periods. The evidence also shows that Canadian monetary growth has remained linked to US monetary growth under the present flexible exchange-rate regime.     

Economic inequality and paretian welfare economics: Some insinuating questions

Capitalists, managers, unions and government today have espoused employee ownership and participation in order to further their own selfish ends. By so doing, they unwittingly usher in full workers' democracy, and concomittant radical transformations of the socioeconomic system which, ironically, will curtail their power. These transformations would stem from our populist ideological roots and would promote profound changes in the distribution of political power and in the way the society deals with technology.     

Film and ideology: narrative analysis of the student movement in Iranian Cinema (2001–2004)

Quality & Quantity - Cinema has a complex relation with the state and social reality in Iran. Between 2001 and 2004, Iranian cinema was under the control of the ideology of the Islamic Left....     

The usefulness of the double entry constraint for predicting earnings

Review of Quantitative Finance and Accounting - In the absence of an income statement, earnings can be calculated as cash flow from operating activities (CFO) plus accruals, rather than being...     

Institutional theory and accounting rule choice: an analysis of four US state governments' decisions to adopt generally accepted accounting principles

In this study, we use institutional theory to explore how institutional pressures exerted on four state governments (New York, Michigan, Ohio, Delaware) influenced the decision of these governments to adopt or resist the use of generally accepted accounting principles (GAAP) for external financial reporting. We identify resource dependence as a potent form of coercive institutional pressure that was associated with early GAAP adoption. We identify three factors that may lead to initial resistance to institutional pressures for change. First, if accounting bureaucrats are not active in professional associations that promote GAAP adoption, they may miss the educational process that we believe is important to early adoption of GAAP. Second, organizational printing may impede GAAP adoption. Third, powerful interests may impede GAAP if the proposed GAAP legislation is expected to alter the existing power relationships. We found that key accounting bureaucrats in New York and Michigan used “compromise” as an initial strategic response to institutional pressures to adopt GAAP, Ohio's key accounting bureaucrat adopted a “defy” strategy, although the political leadership endorsed an “acquiesce” strategy. While Delaware initially employed a “manipulate”strategy with some success. Delaware did not adopt GAAP for external reporting until a political entrepreneur for GAAP emerged in the early 1990s. Our study suggests that all strategic responses to resist institutional pressures for GAAP adoption will ultimately fail because of the potency of the institutional pressures that result from the well organized professional accounting and governmental institutional fields.