The difference in microwave oven ownership and use in London,U.K. and Atlanta,Georgia

In the present study of microwave oven ownership and use, three hypotheses were tested with data from 100 households in London, U.K. and 100 households in Atlanta, Georgia. The data were collected with a survey instrument administered by door-to-door interviews. The results of the study show that microwave owners are younger, have higher incomes, Larger families, and are more innovative than non-owners. The study also revealed that country of residence made a great difference in level of use. Households from Atlanta, Georgia, are younger, have larger families, have microwaves with many more features, and have owned a microwave longer than low level microwave users. The research reinforces the need for cross-cultural studies of this type.     

Cars,Employment, and Single Mothers: The Effect of Welfare Asset Restrictions

This article measures the effect of asset rules for welfare eligibility on car ownership among single mothers without a college education, and investigates whether these changes lead to changes in employment. We combine micro‐level data with data on state welfare asset rules and find that the probability of owning a car is greater in states with higher overall asset limits, states that value vehicles on an equity basis, and states with exemptions for multiple vehicles.     

THE IMPACT OF FINANCIAL HELP AND GIFTS ON HOUSING DEMAND AND COST BURDENS

Financial transfers are an important source of income for many households and recipients may use these funds to pay for housing services. This paper examines the separate impact of financial help and substantial gifts on both housing demand and housing cost burden. The results indicate receiving gifts has a positive and statistically significant impact on housing demand. Households receiving help or gifts have substantially higher housing cost burdens, all else being held constant. These findings have implications for the financial well-being of recipient households and ultimately, the mortgage industry . ( JEL R20, R21)     

‘NOT AN INSTRUMENT OF PUNISHMENT’: PRISON DIET IN THE MID-NINETEENTH CENTURY

This paper examines some of the issues involved in devising a suitable dietary for nineteenth century prisoners. It begins with a section defining and explaining the application of the ‘less-eligibility’ principle—a principle which still strikes a chord with many people today. The paper goes on to describe the lack of standardized diet in the early part of the century, which first led the prison inspectors to investigate the properties of food. The inspectors, however, were administrators, not nutritionists, and the next section is concerned with the work of such medical men as Dr Guy and Dr Smith, who made more scientific experiments and observations in the 1850s and 1860s. In the final paragraphs, prison diet is compared with the sort of food consumed by working class families of the Victorian period. Both at the beginning and at the end of the paper, an attempt is made to demonstrate that the problem of reconciling humane treatment for the prisoner, with society's demands for justice, is just as great for the prison administrator of today as it was in the previous century.     

The Explanatory Power of Canadian Accounting Measures of Earnings Dilution*

This paper examines the properties of the accounting measures of dilution under pre‐2001 Canadian GAAP. Fully diluted earnings per share (EPS) presents investors with a per‐share figure that attempts to capture the maximum potential dilution that would occur if all dilutive convertible securities were converted and all dilutive stock options and rights exercised. We examine how the difference between basic and fully diluted EPS, which we refer to as the dilutive adjustment, affects the ability of EPS to predict one‐period‐ahead EPS. Moreover, we address the issue of the explanatory power of changes in the dilutive adjustment for unexpected stock returns over the year and at the earnings announcement date. Surprisingly, in contrast with the traditional accounting view that increases in the dilutive adjustment present the investor with bad news due to potential dilution of the future earnings stream, the dilutive adjustment is positively related to next period's earnings and increases in the dilutive adjustment are positively correlated with contemporaneous long‐window stock returns. These results can be attributed to the relation between the dilutive adjustment and the earnings process combined with a partial resolution of the uncertainty attached to growth firms. We find no evidence that investors use information from the disclosure of fully diluted EPS at the earnings announcement date. These results are consistent with increases in the dilutive adjustment capturing the partial realization of a firm's growth potential that more than outweighs the potential dilution attached to the convertible securities; however, this information appears to be already embedded in price prior to the disclosure of fully diluted EPS.     

Undetected Deviations in Tests of Controls: Experimental Evidence of Nonsampling Risk*

The objective of the study was to examine the effects of three independent variables ‐ accountability, audit workpaper structure, and type of control deviations ‐ on auditors' detection failure rates during control tests in a purchases, payables, and payments cycle. The experimental design used a between‐subjects manipulation of accountability and workpaper structure, and a within‐subjects manipulation of deviation type. Consistent with prior research, we observed an alarmingly high detection failure rate of 42.3 percent. This failure rate was not affected by levels of accountability or workpaper structure, although postexperiment evidence suggests that these variables were successfully manipulated. Failure rates did depend on the type of seeded control deviation, with nonmonetary deviations being overlooked most frequently. In addition to replicating prior research, our study makes two further contributions. First, we provide empirical evidence that supports Hirst's (1992) speculation that successful manipulations of accountability may not affect auditor performance because auditors may self‐induce levels of accountability that create a ceiling effect on auditor performance. Second, we observe that although auditors perceived that highly structured workpapers allowed them to be more effective and efficient when performing tests of controls, their actual audit performance was not more effective and, on average, was less efficient.     

Do Your Neighbors Influence Your Health?

When individuals make decisions regarding their allocation of time and income, the health investment and health that they achieve may fall short of the goals prescribed by medical guidelines and health policymakers. Instead of the oft‐observed policy responses such as additional spending on public awareness campaigns, it may be more fruitful to determine how individuals can be induced to choose behaviors that will lead to the prescribed health. That is, one must recognize the trade‐offs between health investment and consumption or leisure today in the face of factors such as social norms, job stress and advances in health technology.     

Bureaucrats and Babies: Government Regulation of the Supply of Genetic Material*

One might object to the sale of genetic material on the ground that it constitutes a trade in human beings. We argue that such exchange does not constitute a morally significant departure from current practice concerning the sale of other bodily property. Some utilitarians have argued that there is no justification for suppliers of genetic material receiving the competitive market-clearing price for their product. They maintain that utilitarian objectives would be better advanced by distributing genetic material through a government board. We contend that competitive market exchange of genetic material is preferable both because it does more to further individual liberty and because it is more efficient.     

Consumer acceptance of low-fat and fat-substituted dairy products

The continued expansion of the low-fat market, coupled with extensive dietary guidelines given to consumers, has not yet appeared to have had the desired effect. Evidence suggests that the majority of U.K. consumers are still not prepared to sacrifice the taste and quality of a food for any perceived health benefits. This is particularly evident in the low-fat hard cheese market, which has not reached the same level of consumption as other diary based products. The key would appear to be in gaining an optimum balance between health and taste, yet the latter is often compromised by manufacturers who are under constant pressure to further reduce the fat levels of their products. A potential solution may be the development and inclusion of fat substitutes, as investigated in this study. Research consisted of two main elements. Firstly, lower fat cheese incorporating a fat substitute was developed and compared with other products currently on the market using sensory analysis. A questionnaire was then utilized to further assess the degree of consumer acceptance of this trend. Substitute use would appear to have potential in permitting a further reduction in fat levels, while retaining a measure of quality — an essential element if longer term dietary guidelines are to be achieved.     

Information, Trading, and Product Market Interactions: Cross-sectional Implications of Informed Trading

I present a simple model of informed trading in which asset values are derived from imperfectly competitive product markets and private information events occur at individual firms. The model predicts that informed traders may have incentives to make information‐based trades in the stocks of competitors, especially when events occur at firms with large market shares. In the context of 759 earnings announcements, I use intraday transactions data to test the hypothesis that net order flow and returns in the stocks of nonannouncing competitors have information content for announcing firms.