The Contradictions of Free Market Doctrine: Is There a Solution?

The article considers six standard arguments in favour of an unfettered free market: (1) the freedom to consume; (2) the freedom of the seller; (3) the freedom of the producer; (4) freedom from government interference; (5) lower costs; (6) promotion of democracy. It demonstrates that each of these arguments turns out to be incoherent on closer examination. The ground of this incoherence it is shown, is the market doctrine's systematic omission of non-business costs and benefits from its analysis, a methodological blindness which can only be overcome by a wider-lensed comprehension of economic value.     

Rates of Return to Schooling in China

This study uses data from a 1988 survey of Chinese individuals to estimate rates of return to schooling in China. The Mincer-type rate of return to schooling was estimated at 4.02 percent in the rural areas and 3.29 percent in the urban areas; these are fairly low estimates compared with similar estimates in other countries. The rate of return to schooling for females was significantly higher than that for males in urban areas. In addition, members of the Communist Party in urban areas had significantly lower returns to schooling compared with non-members.     

Econometric Cost Structure Estimates for Cellular Telephony in the United States

This article estimates economies of scale for a sample of five cellular telephony firms in the United States. We reject constant returns to scale for all but the smallest firm studied; the remaining firms exhibit decreasing returns to scale. This finding suggests that scale economies cannot be used to justify the current regulated duopoly structure of United States cellular markets.     

Profit maximization: The ethical mandate of business

The authors propose a model for business ethics which arises directly from business practice. This model is based on a behavioral definition of the economic theory of profit maximization and situates business ethics within opportunity costs. Within that context, they argue that good business and good ethics are synonymous, that ethics is at the heart and center of business, that profits and ethics are intrinsically related.Marist Father Pat Primeaux is a Professor of Theology at Saint John's University, (New York). John Stieber is a Professor of Finance and Economics at Southern Methodist University's Edwin L. Cox School of Business (Dallas). They have collaborated on several articles on the behavioral dimension of economic efficiency. They have also designed and taught courses in business ethics at both the graduate and undergraduate level.     

Mortgage-Backed Futures and Options

This paper empirically tests valuation models for the mortgage-backed futures-options contracts that traded on the Chicago Board of Trade (CBOT) from June of 1989 until March of 1992. A simple contingent-claim model is shown to produce call option values on mortgage-backed futures (MBF) contracts that are unbiased estimates of actual futures-options prices. The ability of the MBF contract to hedge positions in current coupon Government National Mortgage Association (GNMA) securities relative to the effectiveness of cross-hedging GNMA positions with T-note and T-bond futures contracts is also examined.     

Net foreign assets of Dutch commercial banks: A comment

Conclusion The article provides a contribution to the discussion on the net foreign assets of the commerical banks, by drawing renewed attention to the possible passivity of the banking sector, which has gained topicality with the striking developments of 1989. Indeed, the banking sector may be considerably more reactive in regards to net foreign assets formation than has been assumed by various authors and in macroeconometric models on the basis of portfolio optimizing behaviour. However, due to the above-mentioned methodological and empirical shortcomings, Bakkers's study certainly does not provide the final answer to this question.