Transcendental vs. comparative approaches to justice: a reappraisal of Sen's dichotomy

In The Idea of Justice, Sen describes two competing approaches to theorising about justice: “transcendental institutionalism”, in which he includes Rawls, and “realisation-focused comparison”, in which he includes Condorcet and himself. The objective of this paper is to demonstrate that a comparative approach cannot exist without a transcendental dimension. Contrary to Sen, who claims that a transcendental theory is neither necessary nor sufficient in order to frame comparative judgments, it is shown that a transcendental dimension is a necessary, albeit not sufficient, condition of any comparative approach. To illustrate our thesis, we refer to the works of three great authors: Condorcet, Sen himself and the later Rawls.     

Unexpected SEC Resource Constraints and Comment Letter Quality

We investigate whether reviews of transactional filings by the SEC unexpectedly constrain SEC resources, leading to lower quality comment letters for periodic reports. The Sarbanes-Oxley Act requires the SEC to review periodic reports (e.g., 10-Ks) at least once every three years. However, the SEC also reviews transactional filings (e.g., initial public offerings and acquisitions), which are unpredictable and often occur in waves. We find comment letters for periodic reports are of lower quality (in terms of outputs, inputs, and firm responses) during periods of abnormally high transactional filings. We also find that comment letters issued during periods of abnormally high versus low transactional filings are associated with increased information asymmetry and lower earnings response coefficients in the quarter after the resolution of the comment letter. Overall, our results suggest that unexpected resource constraints affect the quality of SEC oversight of periodic reports.     

Two Views on Social Stability: An Unsettled Question

A bstract Emil Durkheim published The Division of Labour in Society as part of his strategy to create a place for sociology as a science independent from economics. The book describes how social cohesion and cooperation evolve spontaneously in the course of the process of the division of labour. Friedrich Hayek developed a theory of markets and competition which was later extended into a theory of society, in which spontaneous evolution is a central element. The main force behind this process is competition and the evolution of coordination. Both authors address the problem of social stability. Hayek rejects Durkheim's analysis as constructivistic, but his criticism is unjustified. Further analysis reveals many similarities between the two authors theories of societal evolution. A striking point of convergence is that Hayek's theory of markets is a network theory, and that sociological network theory is directly inspired by Durkheim's work. The main differences are Hayek's emphasis on the division of knowledge and on coordination as the fundamental stabilising forces as opposed to Durkheim's stress on the division of labour and cooperation. The network approach, together with an elaboration of Hayek's psychology, offer perspectives for integrating coordination and cooperation into a unified theory of social stability.     

A Model for Positively Correlated Count Variables

An α-permanental random field is briefly speaking a model for a collection of non-negative integer valued random variables with positive associations. Though such models possess many appealing probabilistic properties, many statisticians seem unaware of α-permanental random fields and their potential applications. The purpose of this paper is to summarize useful probabilistic results, study stochastic constructions and simulation techniques, and discuss some examples of α-permanental random fields. This should provide a useful basis for discussing the statistical aspects in future work.     

Is there an innovation effect on current account? A case for European countries

The aim of this article is to find out whether there is an innovation effect on the current account, and if there is one then to determine its significance. The study is carried out for the current accounts of European countries. Innovation is tested together with some other factors as control variables in order to estimate and compare its role in the determination process of the current account. The results indicate that innovation has quite a significant influence on the current accounts of European countries, and the form of the relationship between innovation and current account is non-linear. Moreover, the impact of innovation is stronger for countries at higher levels of innovation, but the growth rate of its average marginal effect diminishes through its increasing levels.     

Real Exchange Rates and the Balance of Trade: Does the J-curve Effect Really Hold?

Open Economies Review - In this paper, we re-examine the relationship between trade flows, real effective exchange rates, and incomes by using the bilateral trade flows of 33 countries that form...     

Currency substitution,policy rule and pass-through: evidence from Turkey

In this article we analyse empirically currency substitution and exchange rate pass-through in the Turkish Economy, where their ongoing presence could undermine the implementation of a successful monetary policy, especially in a flexible exchange rate regime. Even though a considerable time has passed after the implementation of a flexible exchange rate regime in Turkey, by using Vector Error Correction model for the period from 1987 to 2004, we find that the currency substitution and exchange rate pass-through still have importance in the Turkish Economy and the monetary policy stance has been considerably strong, possibly, as a response of ongoing presence of them. If this is the case, to avoid the undesired consequences of this strong monetary policy, Turkey should consider some policy measures to reduce the degree of pass-through and currency substitution.