The investment tax credit under monopolistic competition

This paper develops a dynamic model of monopolistic competitionwith finite lives. It investigates the welfare properties ofan investment tax credit (ITC) for both finite and infinitelives. For infinite lives, it shows that, lacking lump-sum taxes,an ITC suffices to attain a second-best solution. For finitelives, the paper considers the intergenerational welfare distributioneffects of an ITC. In the absence of debt policy, the investmenttax credit benefits future generations but may harm most ofthe existing generations. Using debt financing, the policy makercan redistribute the gains in a completely egalitarian fashion.     

On technical analysis

Technical analysis, or the use of past prices to infer privateinformation, has value in a model in which prices are not fullyrevealing and traders have rational conjectures about the relationbetween prices and signals. A two-period dynamic model of equilibriumis used to demonstrate that rational investors use historicalprices in forming their demands and to illustrate the sensitivityof the value of technical analysis to changes in the valuesof the exogenous parameters.     

Career survival strategies for materiel managers

The skill sets and attitudes required for materiel management professional survival continue to change. Just as the industry has evolved for calculators and three-part forms, so too must today's managers evolve into facilitators and information-oriented management. While these new skills are being perfected, three focused strategies initiated right now can enhance your chance for survival. First, get to know your customers intimately. Go to their meetings. Tour their departments. Second, assume responsibility and report materiel cost data that has meaning to senior management and customers. Fill rates and inventory turns offer little value to other managers, but supply cost per discharge can be of value. Third, be proactive in competing with outsourcing competitors. Do not wait until they are on your doorstep before developing a strategy to compete.