Search

Increasing reliance on market mechanisms in higher education is analysed both as one of the approaches to steering as well as in relation to the consequences of markets for quality and accessibility of higher education. This article goes beyond the normative considerations of market elements as inherently good or bad and the economic theory-guided focus on freedoms of users and providers, by presenting an alternative conceptualization. The conceptualization adapted from studies of markets in other parts of the welfare state to the context of higher education is based on two dimensions: (1) who effectively controls production of certain goods and services and (2) how access to and funding of these goods and services are regulated. It focuses on interests of three main actors-the state, the users (students) and the providers (higher education institutions). This leads to six conceptually distinct markets, whose key characteristics are illustrated by examples from Denmark, England, India, Norway, Portugal and Serbia. The key message is that this alternative conceptualization allows identifying variance in marketization of higher education with regards to (1) which actors are empowered, (2) who are the likely winners and losers and (3) what might be the risks of introducing specific market elements in a higher education system. More generally, a more nuanced analysis relying on this conceptualization can potentially contribute to a deeper understanding of political and policy dynamics in higher education., Author(s): Jens Jungblut [sup.1] , Martina Vukasovic [sup.2] Author Affiliations: (Aff1) 0000 0001 1089 1036, grid.5155.4, International Centre for Higher Education Research (INCHER), University of Kassel, , Moenchebergstr. 17, 34109, [...]

Author(s): Mark G. Brennan[sup.1] Author Affiliations: Mark G. Brennan is adjunct associate professor of business ethics in the Business & Society Program at the New York University Stern School of [...]

Although Berger and Luckmann do not specifically discuss the market, they would undoubtedly agree that the market is socially constructed. Indeed, the market is a product of social action that has an objective and subjective reality. Inspired by Berger and Luckmann's work, this paper will describe the social construction of the market. Specifically, it will focus on the Austrian understanding of the market. It is my contention that the Austrians have articulated a 'sociology of the market' that is consistent with Berger and Luckmann's approach. Keywords Berger * Social construction * Markets * Austrian economics, ... society [is] part of a human world, made by men, inhabited by men, and, in turn, making men, in an ongoing historical process. [Berger and Luckmann 1966: 189] The [...]

Byline: K. Mehta (1) Keywords: parallel conduct; concerted practice; collective dominance; bidding markets; unilateral conduct; coordinated effects; divestment remedies; leniency/immunity programme; cartel coercer; market monitoring; collusion markers Abstract: These comments elaborate on the policy implications of theoretical models and compare them with competition law and practice. In regard to EU merger control it is discussed how case law has dealt with the creation of market structures that would maintain collusion. With respect to leniency programmes the deterrence and desistment incentives of actually implemented programmes are compared with theoretical results. Certain areas of research of particular relevance for enforcement are indicated in the conclusions. Author Affiliation: (1) Directorate General for Competition, The European Commission, Brussels, Belgium Article History: Registration Date: 09/09/2005 Online Date: 15/11/2005 Article note: The views expressed are my own opinions and do not reflect in any way those of the European Commission. JEL classification D43, L12, L41, K21

Byline: Francois Degeorge (1,2,3), Boaz Moselle (2), Richard Zeckhauser (3) Keywords: risk; incomplete information Abstract: We analyze the risk level chosen by agents who have private information regarding their quality. We show that even risk-neutral agents will choose risk strategically to enhance their reputation in the market, and that such choices will be influenced by the mix of other agents' types. Assuming that the market has no strong prior about whether the agents are good or bad, good agents will choose low levels of risk, and bad agents high levels. Empirical evidence is gathered on 2462 firms over 24 years. The results support the model: agents of higher quality have less variable performance. Author Affiliation: (1) University of Lugano, via Giuseppe Buffi 13, CH-6904, Lugano, Switzerland (2) HEC School of Management (on leave), Paris (3) Centre for Economic Policy Research, London Article History: Registration Date: 02/10/2004

Byline: Jan Guldager JArgensen (1), Philipp J.H. Schroder (2) Keywords: real costs; tariff costs; industry concentration; market structure; integration Abstract: Economic integration has had ambiguous effects on industry concentration. The literature on the topic proposes various explanations for these empirical findings. This paper provides an additional theoretical argument. It shows that in a world of monopolistic competition, integration alone (modeled as a reduction of trade barriers) may exert opposing forces on industry concentration, depending on whether the barrier consists of real (frictional) or tariff costs. In particular, the Herfindahl index of industry concentration falls for a reduction in real costs, but rises for a reduction in tariff costs. The reason is that real barriers burn up resources, such that industry profitability is reduced, reducing entry, and resulting in fewer firms and a correspondingly higher concentration. Under a tariff barrier, the redistributed tariff revenue stabilizes industry profitability, resulting in more firms and a lower concentration. Author Affiliation: (1) Department of Economics, University of Southern Denmark, Campusvej 55, DK-5230, Odense M, Denmark (2) Aarhus School of Business and DIW, Berlin (3) Aarhus School of Business, Fuglesangs Alle 4, DK-8210, Aarhus V, Denmark Article History: Registration Date: 12/10/2004

Byline: Jesper Antelius (1), Lars Lundberg (2) Keywords: job turnover; market structure Abstract: Does internationalization mean increased reallocation of employment among plants and thus higher adjustment costs? This paper studies the reallocation of jobs among plants in the Swedish economy 1986--97 using micro data. It turns out that the rate of job turnover is high in industries with high rates of innovation and employment growth, and low in concentrated industries with limited competition. However, we find no evidence for the view that increased openness to international competition would increase job turnover. In fact turnover is lower in export oriented industries where foreign ownership is frequent. Author Affiliation: (1) Trade Union Institute for Economic Research (FIEF), University of Stockholm, Sweden (2) Trade Union Institute for Economic Research (FIEF), University of orebro, Sweden Article History: Registration Date: 12/10/2004

Byline: Christian Schultz (1) Abstract: This paper considers the effect of monopoly-promoting export cartels on domestic production. It is argued that export cartels facilitate tacit collusion by monitoring defections more efficiently. This slackens the incentive constraint of tacit collusion. Optimizing firms competing both in the domestic and export markets will often use the increased possibility for collusion in both markets. If the markets are not too different or there is constant returns to scale this is the case. Author Affiliation: (1) Centre for Industrial Economics and Institute of Economics, Studiestraede 6, DK, 1455, Copenhagen, Denmark Article History: Registration Date: 12/10/2004

Byline: Ian Domowitz (1) Keywords: Electronic markets; market microstructure; financial intermediation. Abstract: Relationships between trading cost, technology, and the nature of intermediation in the trading services industry are discussed. Electronic markets are linked to reductions in trading costs. Lower explicit costs are related to system development and operating costs. Electronic order book information is identified as a means of realizing implicit cost savings. The concept of liquidity management in electronic environments is introduced, and its potential is empirically illustrated. The empirical results suggest new roles for brokerage and exchange operations, and competition between the two. Competitive advantage with respect to the provision of liquidity management services is compared across types of intermediaries. Author Affiliation: (1) Electronic Market Initiatives ITG Inc., U.S.A Article History: Registration Date: 05/10/2004

Byline: Robert R. Bliss (1), Mark J. Flannery (2) Abstract: Market discipline is an article of faith among financial economists, and the use of marketdiscipline as a regulatory tool is gaining credibility. Effective market discipline involvestwo distinct components: security holders' ability to accurately assess the condition of afirm (monitoring) and their ability to cause subsequent managerial actions to reflect thoseassessments (influence). Substantial evidence supports the existence of market monitoring.However, the existing evidence about market influence involves relatively rare events suchas management turnover. This paper seeks evidence that U.S. bank holding companies'security price changes reliably influence subsequent managerial actions. Although weidentify some patterns consistent with beneficial market influences, our methodology doesnot provide strong evidence that stock or (especially) bond investors regularly influencemanagerial actions. Day-to-day market influence remains, for the moment, more a matterof faith than of empirical evidence. Author Affiliation: (1) Research Department, Federal Reserve Bank of Chicago, 230 S. LaSalle St., Chicago, IL, 60604-1413, U.S.A. (2) Department of Finance, Insurance, and Real Estate, University of Florida, Gainesville, 32611-7168, U.S.A. Article History: Registration Date: 10/10/2004

Byline: Ari Hyytinen (1), Tuomas Takalo (2) Keywords: banking; disclosure; deposit insurance; market discipline; transparency Abstract: Transparency regulation aims at reducing financial fragility by strengthening market discipline. There are, however, two elementary properties of banking that may render such regulation inefficient at best and detrimental at worst. First, an extensive financial safety net may eliminate the disciplinary effect of transparency regulation. Second, achieving transparency is costly for banks, as it dilutes their charter values, and hence also reduces their private costs of risk-taking. We consider both the direct costs of complying with disclosure requirements and the indirect transparency costs stemming from imperfect property rights governing information and particularly infer the conditions under which transparency regulation cannot reduce financial fragility. Author Affiliation: (1) The Research Institute of the Finnish Economy (ETLA), Lonnrotinkatu 4B, FIN-00120, cHelsinki, Finland (2) Research Department, Bank of Finland, P.O. Box 160, FIN-00101, Helsinki, Finland Article History: Registration Date: 10/10/2004

Byline: Harold L. Cole (1), George J. Mailath (3), Andrew Postlewaite (3) Abstract: Economists typically analyze individuals' market behavior in isolation from their nonmarket decisions. While this research strategy has generally been successful, it can lead to systematic errors when agents' nonmarket behavior affects their market choices. In this paper we analyze how individuals' investment behavior changes as a result of nonmarket behavior. Specifically, we analyze a model in which individuals must decide how to allocate their initial endowment between two random investments, where the returns are perfectly correlated across individuals for the first investment but independent across individuals for the second. We consider an environment in which men and women match, with wealthier individuals more successful in matching. We show how individuals' concern about relative wealth can affect their investment decisions, and we provide conditions under which individuals bias their investments either toward or away from the investment with correlated returns. A modification of the model is used to explain why agents' investments might exhibit a home country bias. Author Affiliation: (1) Research Department, Federal Reserve Bank of Minneapolis, 250 Marquette Ave., Minneapolis, MN 55480, USA , US (2) Department of Economics, Bunche Hall 9377, UCLA, Los Angeles, CA 90095-1477, USA (e-mail: hlcole@econ.ucla.edu) , US (3) Department of Economics, 3718 Locust Walk, University of Pennsylvania, Philadelphia, PA 19104-6297, USA (e-mail: {gmailath apostlew}&amp commat econ.sas.upenn.edu) , US

Byline: Ahmet Alkan (1) Keywords: JEL classification: C78; Key words: Stable matchings, revealed preference, choice function, lattice Abstract: This paper studies the structure of stable multipartner matchings in two-sided markets where choice functions are quotafilling in the sense that they satisfy the substitutability axiom and, in addition, fill a quota whenever possible. It is shown that (i) the set of stable matchings is a lattice under the common revealed preference orderings of all agents on the same side, (ii) the supremum (infimum) operation of the lattice for each side consists componentwise of the join (meet) operation in the revealed preference ordering of the agents on that side, and (iii) the lattice has the polarity, distributivity, complementariness and full-quota properties. Author Affiliation: (1) Sabanci University, Tuzla 81474 Istanbul, Turkey (e-mail: alkan@sabanciuniv.edu) , TR Article note: Received: 5 March 1999 / Accepted: 12 May 2000

Byline: William Poole (1), Robert H. Rasche (1) Abstract: The rational expectations revolution made clear that a complete macro model requires a specification of the government's economic policy. We argue that monetary policy should be conducted in such a way that the market can predict policy actions. An implication of market success in predicting policy actions is that interest rates move ahead of the policy actions, and such a timing relationship may appear to some as the central bank following the market instead of leading it. Another implication of the market predicting policy actions is that nominal interest rate changes provide no useful information to the central bank about the strength of aggregate demand or inflationary expectations. Finally, failure of the market to predict policy actions reflects a problem that needs to be addressed. We explore the theoretical implications of a monetary policy that is completely specified and perfectly understood by the market. We construct a bare-bones model to illustrate the key concepts. Finally, we conduct an empirical investigation of these issues, especially in the context of monetary policy since 1988, when the establishment of the federal funds future market made available well-defined market information on expectations about Fed policy actions. We find that when the intended funds rate is changed, interest rates over the maturity spectrum respond to 'news' measured by changes in the one-month-ahead funds futures yield but do not respond to the anticipated component of the change in the intended funds rate. Author Affiliation: (1) Federal Reserve Bank of St. Louis, USA Article History: Registration Date: 09/10/2004

Byline: Martina K. Bers (1), Jeff Madura (1) Keywords: mutual funds; closed-end funds; mutual fund performance; performance persistence Abstract: This study extends the research on closed-end fund performance persistence by investigating whether the persistence of both net asset value (NAV) and market price returns of U.S. registered closed-end funds is related to various fund characteristics. The sample consists of 505 closed-end funds, which are investigated over the period from January 1976 to December 1996. The analysis tests whether persistence is related to the fund characteristics size, goal, management fees, turnover, fund family membership, fund experience, and the exchange on which a fund is traded. The results vary across holding periods used to calculate persistence but are similar with respect to the NAV and market price returns. Funds with lower expense ratios and funds traded on the NYSE show more persistence of strong NAV and market price performance. Author Affiliation: (1) Florida Atlantic University, USA Article History: Registration Date: 09/10/2004

Byline: Ferdinand A. Gul (1), Burch T. Kealey (2) Keywords: Korean markets; corporate policies; growth opportunities; contracting; Chaebol Abstract: This paper examines explanations for the association between Korean Chaebol, which are giant conglomerates supported by various government initiatives, and corporate debt and dividend policies. Unlike in the US, the Korean corporate sector is dominated by the Chaebol which are characterized by concentrated family ownership, political affiliation and bank ownership. These institutional arrangements are likely to encourage more debt financing. In addition, the study also investigates whether firms with more growth options measured in terms of the investment opportunity set (IOS) have lower leverage and dividends. Results using observations from 411 Korean firms showed that for a fixed level of growth opportunities, Chaebol carry higher levels of debt. Results also show that growth options were negatively associated with leverage and dividends. No association, however, was found between Chaebol and dividends. Author Affiliation: (1) Department of Accountancy, City University of Hong Kong, 83 Tat Chee Avenue, Kowloon Tong, Hong Kong (2) Department of Accountancy, City University of Hong Kong, 83 Tat Chee Avenue, Kowloon Tong, Hong Kong Article History: Registration Date: 30/09/2004

Byline: Pradipkumar Ramanlal (1) Keywords: liquidity trading; market microstructure Abstract: Liquidity trading is an important component of market microstructure models. In most cases, its role is primarily to ensure existence of equilibrium and therefore that trading occurs among asymmetrically informed agents. While most market microstructure models allege that agents trade based upon rational expectations, the rationality of the type of liquidity trading assumed in these models remains to be verified. Specifically, liquidity traders are often assumed to submit price-inelastic orders for reasons exogenous to the model at hand. But whether price-inelastic trading is consistent with rational utility maximizing behavior remains to be shown. Author Affiliation: (1) College of Business, Department of Finance, University of Central Florida, Orlando, FL, 32816, U.S.A Article History: Registration Date: 30/09/2004

Byline: Thomas C. Chiang (1), Jeanette Jin Chiang (2) Keywords: Euro currency; nonlinear models; error correction model; term structure of interest rates Abstract: This paper presents a coherent nonlinear interest rate model that incorporates the dynamics of the error correction specification into the traditional term structure model. The joint tests based on six Euro-Currency rates indicate that the linear specification should be rejected. The estimated equation suggests that the linear components--the change of the long-term interest rate and the error correcting term are highly significant. The nonlinear components involving the higher order of the independent variables, the cross products, the lagged error squares, and/or the ARCH effect also present significant explanatory power for predicting short-term Euro-Currency rate changes, confirming the non-linear specifications. Author Affiliation: (1) Marshall M. Austin, Drexel University, USA (2) PV International, USA Article History: Registration Date: 21/10/2004

Byline: Raj Aggarwal (1), Mbodja Mougoue (2) Abstract: This study documents that daily changes in Asian exchange rates are significantly non-normal, serially correlated, non-stationary, and have unit roots. Further, accounting for these time series properties and using a longer time horizon than other similar studies of exchange rates, this study also documents cointegration between the Japanese Yen and two sets of Asian currencies, i.e., currencies of the 'Tigers', Hong Kong, South Korea, Singapore, and Taiwan and currencies of the ASEANs, Malaysia, Philippines, Thailand, and Singapore. These findings of cointegration among Asian exchange rates are in contrast to the findings for the major currencies, and are evidence of nascent Yen blocs in Asia. The results presented here have important implications for understanding Asian financial integration and the international role of the Japanese yen and should be useful for developing asset allocation, currency overlay, value at risk (VAR), and hedging strategies for investments in these often illiquid Asian currencies. Author Affiliation: (1) The Edward J. and Louise E. Mellen Chair in Finance, John Carroll University, Cleveland, Ohio, 44118 (2) School of Business Administration, Wayne State University, Detroit, MI, 48202 Article History: Registration Date: 06/10/2004

Many Latin American nations have focused efforts towards the formation of a common market in the region. In a common market, the free circulation of goods and services will be guaranteed. However, the relative lack of controls can have a negative impact on consumer protection. The Southern Common Market agreement between Argentina, Brazil, Paraguay and Uruguay has similar consumer protection features as that of the EC model but without a fixed body for the redress of grievances.

The claim that market exchange allows for the peaceful co-existence of those of differing cultures has been one of the strongest and most consistent arguments marshaled in favor of capitalism [...]

JEL D00.D21.R10 The spatial invariance theorem states that if the production function is homothetic, then the optimal plant location and the optimal input ratio are independent of the output level, [...]