Knowledge that Transforms

This paper considers the relationship between inequality and crime using data from urban counties. The behavior of property and violent crime are quite different. Inequality has no effect on property crime but a strong and robust impact on violent crime, with an elasticity above 0.5. By contrast, poverty and police activity have significant effects on property crime, but little on violent crime. Property crime is well explained by the economic theory of crime, while violent crime is better explained by strain and social disorganization theories.

This paper proposes a factor model with infinite dynamics and nonorthogonal idiosyncratic components. The model, which we call the generalized dynamic-factor model, is novel to the literature and generalizes the static approximate factor model of Chamberlain and Rothschild (1983), as well as the exact factor model à la Sargent and Sims (1977). We provide identification conditions, propose an estimator of the common components, prove convergence as both time and cross-sectional size go to infinity at appropriate rates, and present simulation results. We use our model to construct a coincident index for the European Union. Such index is defined as the common component of real GDP within a model including several macroeconomic variables for each European country.

The proposed budget for 2000 in Table 1 projects an operating loss of $736 thousand, investment income of $598 thousand, and an overall deficit for the year of $138 thousand.Net

The Committee sponsored two sessions at the 2000 ASSA meetings.The first session, "Teaching Macroeconomic Principles," was organized by Michael Salemi

The Finance Committee of the American Economic Association met at the Chicago Club, Chicago, IL, at 12:30 P.M. on December 9, 1998. Present were John Cochrane, Robert Dederick, Robert Hamada, C. Elton Hinshaw (Chair) , and John Siegfried (Secretary of the Association ) ; Representing Stein Roe & Farnham, investment counsel for the Association, were Robert McNeill, Scott W. Vogg, and Debbie Jansen. In 1987, the Committee reviewed recommendations presented by the AEA Committee on indexing Association funds concerning the long-term allocation of the Association’s investment assets. As a result of that recommendation, it was agreed that the Association’s portfolio comprise a combination of an S&P 500 Index Fund, Stein Roe & Farnham’s specialty equity mutual funds, and a bond portion managed by Stein Roe & Farnham. This restructuring took place at the end of June 1988. The current portfolio includes holdings in the Vanguard Index Trust Fund, as well as several special Growth Funds and an International Fund, under the supervision of Stein Roe & Farnham (SRF) . The Fixed Income portion of the portfolio is currently invested in SRF’s Intermediate Term Government and Corporate taxable funds. With respect to the calendar-year 1998 performance of the Association’s portfolio, the total return including cash, bonds, and equity holdings was approximately 17.2 percent. The benchmark, which consisted of 5 percent cash, 25 percent Lehman G/C Intermediate Bond Index, 60 percent S&P 500 Index, and 10 percent EAFE index returned 16.7 percent. The returns from the AEA portfolio have now outperformed the benchmark portfolio for six years in a row. The Committee discussed a change to the allocation of the portfolio and the benchmark. It was approved that the benchmark portfolio would become 0 percent cash, 25 percent Lehman G/C Intermediate Bond Index, 60 percent S&P 500 index, 5 percent Russell 2000 index, and 10 percent EAFE index. Additionally, it was agreed to move 5 percent of the assets in the S&P 500 Index Fund into the bond portion of the portfolio immediately. Members can obtain a list of the assets in the portfolio by writing the Treasurer.

Election of Members to Board of Directors: The ballots were opened and counted to be 122. The Bylaws say we need 10% of the homeowners to hold an election, which is 98.7. Three seats needed to be filled. Ramona Steele received 119 votes, Gloria Hammond received 119 votes, Spresa Clements received 5 votes, Roy Hart received 1 vote, and Doris Swanson received 1 vote. Gloria Hammonds and Ramona Steele were re-elected. Spresa Clements was appointed to fill the vacant position until next September. Ramona and Gloria will serve a three year term of office.

In introducing three papers on the institutionalised nature of financial accounting practices, this paper argues for the importance of research that can provide more adequate insights into the wider institutional and social positioning of financial accounting. Illustrating the argument by appeal to both contemporary and earlier examples, emphasis is placed on the ways in which changes in the wider interests in and around the enterprise can and do mediate financial accounting practice.