Exchange Rate Crises and Fiscal Solvency

This paper combines insights from generation one currency crisis models and the fiscal theory of the price level (FTPL) to create a dynamic FTPL model of currency crises. The initial fixed‐exchange‐rate policy entails risks due to an upper bound on government debt and stochastic surplus shocks. Agents refuse to lend into a position for which the value of debt exceeds the present value of expected future surpluses. Policy switching, usually combined with currency depreciation, restores fiscal solvency and lending. This model can explain a wide variety of crises, including those involving sovereign default. We illustrate by explaining the crisis in Argentina (2001).     

Education and training as a strategy for improving worker health and safety: a survey of U.S. apparel companies

Maintaining a healthy work force is becoming increasingly important to apparel manufacturers today. The purpose of this study was to examine the issues involved in worker health and safety, particularly that of educating and training production workers. Data were generated from responses to a mailed questionnaire by 134 upper level managers in companies located throughout the United States. Results indicated that educating workers was an important concern for managers, ranking second to controlling workers' compensation costs. Chi-square analysis showed that there was a significant difference between those who used education and training as a cost-reduction strategy and a decrease in workers' compensation costs. Education and training was reported as a component of ergonomics and safety programmes by over three-quarters of those who were developing and implementing such programmes. The findings from this study suggest that apparel manufacturers should seriously consider the importance of education and training programmes as a cost-reduction strategy as well as a means of improving the safety and health of production workers.     

Satisfaction with household production: the effect of time spent in household production by husbands and wives

The purpose of the study was to examine the relationship between the extent of household production and satisfaction with household production. Data were obtained from 400 married couples who responded to a postal questionnaire. The dependent variable was an index of satisfaction incorporating two aspects of household production, quality and quantity. Regression analysis indicated that of the three variables representing the extent of household production in the model — hours spent by each spouse in household production and an activity index to measure the number of household production activities — only husband's hours spent in household production demonstrated a significant, independent effect. Other significant variables included husband's hours of market work, household net worth, age of respondent and gender of respondent. Two significant interactions indicated that (i) the relationship between wife's hours of household production and satisfaction with household production differed according to the gender of the respondent, and (ii) the relationship of husband's hours of market work and satisfaction differed according to the age of the respondent.     

INTEGRATING TRADITIONAL CAPITAL BUDGETING CONCEPTS INTO AN INTERNATIONAL DECISION-MAKING ENVIRONMENT

The capital budgeting policies of 146 multinational companies are analyzed in light of current financial theory. Extensions of domestic practices into the international area are examined. There are a number of misapplications such as applying corporatewide weighted average cost of capital to foreign affiliate cash flows rather than to cash flows actually remitted to the corporation. Also, risk is frequently measured on a local project basis (in a foreign country) rather than considering the portfolio effect on the total corporation. Ultimately, it is shown that the survey respondents hedge against the uncertainty of the procedures by adding a premium to the weighted average cost of capital as computed by financial analysts.     

Comparative study of phosphate and non-phosphate detergents

A comparison of three different detergents was made by evaluating their properties of soil removal, soil redeposition and calcium carbonate deposition. The detergents included a phosphate granular detergent, a non-phosphate, carbonate built granular detergent and an unbuilt liquid detergent. The local water conditions were moderately hard and clay type soils were used. Detergency was evaluated on the basis of both visual and instrumental colour changes. In effecting soil removal, clay stained fabrics laundered with the phosphate detergent retained only a small amount of soil, while fabrics laundered with the two non-phosphate detergents showed heavier staining. In preventing soil redeposition, the phosphate detergent produced almost no visible redeposition; the unbuilt and carbonate built detergents ranked correspondingly lower. In assessing calcium carbonate deposition, the phosphate and unbuilt detergents showed little or no change, while the carbonate detergent continued to build up deposits with laundering. In summary, the phosphate detergent ranked highest in overall performance, with correspondingly lesser performance from the unbuilt and carbonate detergents.     

Finance Research Productivity and Influence

This study examines differences in finance research productivity and influence across 661 academic institutions over the five-year period from 1989 through 1993. We find that 40 institutions account for over 50 percent of all articles published by 16 leading journals over the five-year period; 66 institutions account for two-thirds of the articles. Influence is more skewed, with as few as 20 institutions accounting for 50 percent of all citations to articles in these journals. The number of publications and publication influence increase with faculty size and academic accreditation. Prestigious business schools are associated with high publication productivity and influence.     

Labor Law,Economics, and Industrial Democracy: A Reconciliation.

This article analyzes the competing economic and industrial democracy/ voice views of unionism. It points out that the economic arguments vis-àvis unionism and the costs of union rent seeking depend on competitive markets. If markets vary in their competitive characteristics, however, and employers also have an incentive to rent-seek, then decentralized, NLRA-type unionism with minimal government interference in establishing bargaining outcomes may serve to restore competitive wages. The article concludes by evaluating some proposals to amend the NLRA in the context of this “symmetry of motives” framework.     

Clothing-related risk perceptions of disabled men and women at point of purchase

Clothing-related risk perceptions of wheelchair-bound consumers were examined and then compared to risk perceptions of able-bodied consumers reported in previous studies. A scenario was used which involved the purchase of a pair of pants or slacks for a job interview to measure specific and overall clothing-related risk perceptions of 75 wheelchair-bound consumers. These disabled consumers perceived the order of clothing-related risk components as: physical, performance, psychological, economic and social. In previous studies, able-bodied students, reported a reverse order of perceived clothing-related risks. In this study, performance and social risk significantly correlated with overall risk; the same correlations held for able-bodied consumers in previous studies. Unique to this study were the high correlations of physical risk with psychological risk and economic risk. Wheelchair-bound males and persons with congenital disabilities perceived greater overall risk than other disabled consumers in this study.     

Discrimination Helps the Under-Privileged

Anthony Wedgwood Benn's agitation for higher pay for youths on Norman Tebbit's government training programmes would increase the numbers on the dole. To legislate against discrimination prevents the under privileged pricing themselves into jobs and homes from which they can them be pushed by their white, stronger or otherwise more attractive competitors.     

A Survey of Consumer Difficulties with the Homebuying Process in One Colorado Community

To provide a basis for homebuyer education, this study sought to identify difficulties related to the homebuying process. A questionnaire mailed to a random sample of 250 Colorado homebuyers requested them to indicate problems encountered during search, purchase, and first year of occupancy. They were also asked to identify their two most important homebuying problems and the perceived causes for these difficulties. An 80.4 percent response was realized, of which 153 were eligible respondents. The difficulties most commonly reported by the respondents were utility costs, foregone activities, mechanical system problems, necessary repairs or adjustments, delayed closings, and overlapping payments. Numbers and types of reported problems varied across sample groups categorized by buyer, search, and purchase characteristics. Implications for consumer education and further research are drawn from the study findings.