Advertising,Price and Quality in Self–regulating Professions: A Survey

This paper surveys the theoretical and empirical literature on the relationship between advertising, fees and quality in the self–regulating professions. Much of the literature is derived from the perspective of advertising as an information–enhancing device, helping to reduce the information asymmetry between professional and client. This is consistent with the majority of the empirical studies which suggest that advertising tends to have a downward effect on professional fees, with little if any adverse effect on quality. There are, however, important issues of method and measurement which may lessen the force of this conclusion     

The Practice Boundaries of Advanced Practice Nurses: An Economic and Legal Analysis

The purpose of this study is to examine the effects of State regulation that determines the extent of professional independence of advanced practice nurses (APNs). We find that in States where APNs have acquired a substantial amount of professional independence, the earnings of APNs are substantially lower, and those of physicians assistants (PAs) are substantially higher, than in other States. These results are striking since PAs are in direct competition with APNs; the only real operational difference between these groups is that PAs are salaried employees who must work under the supervision of a physician. The implication is that physicians have responded to an increase in professional independence of APNs by hiring fewer APNs and more PAs. The finding that earnings of APNs decline when they attain more professional autonomy vis-à-vis physicians reinforces work by Sass and Nichols on physical therapists.The content is the responsibility of the authors and does not represent official positions of the Federal Reserve Bank of St. Louis or the Federal Reserve SystemJEL classification: I11, I18, J31, J44, L51     

The Theoretical Ground for Public Relations Practice and Ethics: A Koehnian Analysis

Public relations literature laments the lack of a theoretical base for the practice and ethics of public relations. Drawing primarily upon Koehn (The Ground of Professional Ethics, 1994) and Hutton (Public Relations Review, 1999), this paper proposes such a theoretical ground.The paper adopts Hutton's assertion that "the central organizing theme of public relations theory and practice" is relationships(Hutton, 1999, p. 209). It also relies upon Koehn (1994) to provide a theoretical discussion of the nature of professions, and the ground upon which professional ethics and public trust in the professions are based. It concludes, from a Koehnian perspective, that for public relations to move from the expertise and contractual models of practice into a covenantal model as a profession worthy of public trust, the field must devote itself to a defined human good (relationships), and must be grounded in a public pledge to serve this good.     

Puerto Rico in the 1970s and 1980s: Crisis of the Development Model

In his institutional economic essay on "Taxation in Chicago and Philadelphia" (published in 1895) John R. Commons addresses property tax assessment. He demonstrates that the revenue is not just a question of the tax rate and the distribution of the tax burden but also one of constitutional requirements and how the taxes are assessed. His essay is reviewed with regard to his later work, subsequent Institutional Economics, and the social provisioning of the market for professional tax advice. The degree of liabilities is defining characteristics of the differences between the United States and Germany.     

Supply and demand of policy indicators

The aim of this article is to question the idea that all professional service organizations are undergoing a process of inter-archetype transformation. This idea, originating in organizational archetype theory, is now being used to interpret contemporary processes of change in British and other public sector services. Drawing on an example of management UK restructuring in social services during the 1990s – that of local authority social services in the UK – two main problems with this thesis are identified. First, this service demonstrates that ‘radical’ change has not occurred and that older professional values and working practices persist. Second, it reveals how, in at least one part of the public sector in the UK, management reforms have been partly undermined by a specific constellation of institutions and practices. These observations call for questioning the proposition that inter-archetype change is what has occurred and that current reforms will inevitably have this sort of transformational effect.     

The New Institutional Economics

Current English policy towards general practice is ambivalent between developing new forms of contractual governance and constructing more hierarchically organized bodies. NHS policy documents say that Primary Care Trusts (PCTs) will contract some primary care services and directly manage others. Depending on the balance, PCTs could either organize general practice through practice-based contracts or start developing into hierarchies (albeit with some subcontractors for the time being).

New Institutional Economics, in particular Williamson's version, defines conditions where hierarchies are likely to be more efficient than markets (in terms of what welfare economics recognizes as allocative efficiency) and conditions where the reverse holds. This article considers the implications of the New Institutional Economics (NIE) for redesigning the governance of publicly financed services such as general practice which allow direct public access, in which it is difficult to define and manage service quality, and which have a professionalized but fragmented workforce. In contrast to their alleged implications for the hospital sector during the 1990s, NIE theories imply that for publicly funded professional services such as general practice there are stronger economic arguments for constructing hierarchies than for reconstructing quasi-markets at local level.     

Expert labour as a differentiated category: power,knowledge and organisation

The idea of ‘expert labour’ as a category uniting many kinds of knowledge‐based work has long been of interest. At the same time, existing models often do not differentiate between the many forms of ‘new’ expertise in the main business and technological groups. These tend to be consolidated in single categories of ‘entrepreneurial’, ‘organisational’ or ‘commercial’ professions. This paper built on Reed's seminal account of the expert division of labour. It used his analytic dimensions of power, knowledge and organisation to develop a new framework comparing clusters of expert labour in professional services, business services and knowledge work. It offered a more detailed classification and a comparative view that throws fresh light on key debates around new professionalism and emergent technologically defined occupations.     

Ethical Decision Making and the Employed Lawyer

This article addresses one of the more disturbing questions raised by the major financial failures of the recent past; namely, how it could be that professionals, highly trained both in ethics and technical disciplines, should apparently collude with management in corporate misbehaviour. The article builds on evidence suggesting that professionals in employment contexts find ways of adapting in order to minimise perceived or actual conflict between their professional and organizational obligations and that this, in turn, may affect the way in which they exercise professional judgment. It uses identity theory to propose that professionals may adopt modified identities when employed and that these identities may be expressed, in part, in the way in which they resolve ethical dilemmas. The article reports on the results of a qualitative study in which corporate counsel showed evidence of adopting these identities. The findings suggest that this line of research offers insight into a far more complex world of employed professionals than that traditionally hypothesised and that the popular approach of regulators and others to monitoring corporate governance by appointing professionals as gate-keepers within the organization is perhaps problematic.     

Does mutual recognition of qualifications stimulate services trade? The case of the European Union

This article analyses the services trade impact of recognition of professional qualifications using a unique database compiled by the European Commission. It observes that there is large variation in the number of regulated professions across the EU. The number of recognitions is small relative to total employment in regulated professions. Nevertheless, a robust positive relationship between services trade and recognition of qualifications is found. Recognition stimulates two-way trade between the source and the host country, suggesting that arms-length exports as well as cross-border outsourcing take place. Recognitions in health and education professions are most strongly related to services trade.     

Epistemic commitment and cognitive disunity toward fair-value accounting

This paper critically explores knowledge/professionalization relationships in a jurisdictional context characterized by shifting standards of practice. Focusing on the growing movement toward fair value within accounting standards, we examine practitioners' reactions to the growing compulsory application of fair-value accounting standards. To make sense of these reactions, we introduce the notion of epistemic commitment, that is to say one's degree of allegiance to a given knowledge template. Utilizing 27 interviews with Canadian experienced accountants, we rely on epistemic commitment to analyze the extent of variability in practitioners' reactions to the standardization movement toward fair-value accounting. Our analysis demonstrates an important level of variability in practitioners' epistemic commitment toward fair-value accounting, highlighting a lack of cognitive unity in the field. Our findings point to other important professionalization issues: practitioners' inclinations to refer to profitability issues when reflecting on the appropriateness of standards; practitioners' conception of accounting as an objective technology; practitioners' hesitations in voicing deep-level concerns over implementation ambiguities and lack of professional cognitive authority. Overall, our study raises doubts about the professional status of accountancy.