Asymmetric effects of housing wealth on college enrolment

We investigate the impact of housing wealth, credit availability and financial distress on college enrolment decisions. We find that housing wealth is negatively related to enrolment in public schools and positively related to enrolment in private schools. This evidence suggests that, on average, students substituted away from private schools towards public institutions during the recent financial crisis.     

Can investors time their exposure to private equity?

Private equity performance, both for buyouts and venture capital, has been highly cyclical: periods of high fundraising have been followed by periods of low performance. Despite this seemingly predictable variation, we find modest gains, at best, to pursuing realistic, investable strategies that time capital commitments to private equity. This occurs, in part, because investors can only time their commitments to funds; they cannot time when commitments are called or when investments are exited. There is a high degree of time-series correlation in net cash flows even across commitment strategies that allocate capital in a very different manner over time.     

Correction: Speaking Truth to Power: Twitter Reactions to the Panama Papers

Journal of Business Ethics -     

Many roads to flexibility: how large firms built autarchic regional production systems in France

This article discusses the adjustment of large firms in France, in particular how they regionalized their production structures in the 1980s. Throughout the ‘Golden Age’, large firms had geographically reorganized their activities: strategic planning remained in Paris, while the actual production was decentralized into the provinces, primarily to address cost and labour conflict issues. When the large firms faced a profitability crisis in the 1980s, and the traditional state‐financed way out of the problems was no longer available, they saw in these proto‐regional production systems a chance to become more competitive. They relied on the decentralization policies of the governments in the 1980s, and used the second‐order effects of the new policies as a means to modernize their own operations. L'article examine l'adaptation des grandes entreprises françaises, notamment la régionalisation de leurs structures de production dans les années 1980. Durant ‘l'Age d'Or’, les grosses entreprises avaient réorganisé géographiquement leurs activités: la planification stratégique restait à Paris, tandis que la production réelle se décentralisait en province, principalement pour résoudre des problémes de couûts et de conflits sociaux. Lorsque ces grandes entreprises se heurtèrent à la crise de rentabilité des années 1980, alors que la solution traditionnelle de financement étatique n'existait plus, elles virent dans ces systèmes de production proto‐régionaux une chance d'améliorer leur compétitivité. Elles s'appuyèrent donc sur les politiques de décentralisation des gouvernements de l'époque, profitant des effets secondaires de ces initiatives pour moderniser leur propre fonctionnement.     

A RE-EXAMINATION OF THE RELATIONSHIP BETWEEN CLOSED-END FUND DISCOUNTS AND EXPENSES

In this paper the role of expenses in explaining closed-end fund discounts is re-examined. A present value model is developed to illustrate the relationship between expenses and discounts. Earlier studies find that discounts are not related to management fees. In this paper, using a larger sample over a longer and different period and a better specification of the expense variable consistent with the model developed, discounts are found to be significantly related to expenses. The relationship between expenses and discounts holds in the presence of other control variables.     

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.     

The effects of mergers on price and output: Two case studies from the airline industry

The literature on industrial organization contains very little direct evidence on the effects of actual mergers. This study estimates the effects of two recent airline mergers approved by the Department of Transportation over the objection of the Department of Justice. The merger of TWA and Ozark appears to have caused a slight increase in fares and a far greater reduction in service on city pairs out of St Louis. The merger of Northwest and Republic appears to have caused a significant increase in fares and a significant reduction in overall service on city pairs out of Minneapolis-St Paul.