Unlike previous studies on the demand for local public education, this paper applies a minimum likelihood technique, developed for a kinked budget constraint, to the case of Wisconsin school districts and carries out simulations. The results indicate that (1) the bias in estimation under standard econometric techniques is substantial, (2) the so-called flypaper effect indeed exists, and (3) the impacts of grants on expenditures and wealth neutrality are different from those obtained by previous studies.

[New evidence is provided on the determinants of stock-return variances. First, when the Tokyo Stock Exchange is open on Saturday, the weekend variance increases; weekly variance is unaffected, however, despite an increase in weekly volume. Second, the listing of U.S. stocks in Tokyo substantially increases the number of trading hours, but Tokyo volume is negligible for these U.S. stocks and their 24-hour variance is unaffected. The overall results are consistent with the predictions of private-information-based rational trading models, but inconsistent with both the irrational trading noise and public-information hypotheses.]

New evidence is provided on the determinants of stock-return variances. First, when the Tokyo Stock Exchange is open on Saturday, the weekend variance increases; weekly variance is unaffected, however, despite an increase in weekly volume. Second, the listing of U.S. stocks in Tokyo substantially increases the number of trading hours, but Tokyo volume is negligible for these U.S. stocks and their 24-hour variance is unaffected. The overall results are consistent with the predictions of private-information-based rational trading models, but inconsistent with both the irrational trading noise and public-information hypotheses.

This paper shows that the 1987 crash was a surprise to corporate insiders; insiders became buyers of stock in record numbers immediately following the crash; stocks that declined more during the crash were also purchased more by insiders; and stocks that were purchased more extensively by insiders during October 1987 showed larger positive returns in 1988. The overall evidence suggests that overreaction was an important part of the crash.

This paper shows that i) the Crash was a surprise to corporate insiders; ii) insiders became buyers of stock in record numbers immediately following the Crash; iii) stocks that declined more during the Crash were also purchased more by insiders; and iv) stocks that were purchased more extensively by insiders during October 1987 showed larger positive returns in 1988. The overall evidence suggests that overreaction was an important part of the Crash.

In the general structural equation model only the direction of the vector of coefficients of the endogenous variables is determined.The traditional normalization rule defines the coefficients that are of interest but should not be embodied in the estimation procedure: we show that the properties of the traditionally defined ordinary least squares and two stage least squares estimators are distorted by their dependence on the normalization rule.Symmetrically normalized analogues of these estimators are defined and are shown to have essentially similar properties to those of the limited information maximum likelihood estimator.

One question development economists are especially interested in but so far left unanswered is: how would the societal income distribution be affected by introducing a family-planning program to reduce the reproduction rate of the poor which is usually high in developing countries? The purpose of this paper is to search for analytical answers to this question. We are able to make definite comparisons about some class of inequality measures of the steady-state societal income distributions and these comparisons provide strong theoretical support in favor of the above-mentioned family-planning program. (EXCERPT)

[This paper proposes that interactions in accounting and auditing can be viewed as a large negotiation system. We define negotiations broadly to include any context in which two or more parties with differing preferences jointly make decisions that affect the welfare of both (all) parties. After a brief overview of negotiation research, the paper: (1) shows how recent research in accounting and auditing has implicitly addressed various aspects of negotiations; (2) comments on the Elias (1990) and Chalos and Haka (1990) studies which appear in this issue; (3) discusses departures from decision maker rationality which may seriously affect negotiations; and (4) uses three scenarios to highlight the importance of three negotiation issues (third party processes, the coordination of work groups, and social dilemmas) in accounting. We conclude by suggesting that a multifaceted research strategy, combining theory, description, and prescription, provides the greatest potential for progress in the study of accounting and auditing negotiations.]

Proposes that interactions in accounting an auditing can be viewed as a large negotiation system. Overview of negotiation research; How research in accounting and auditing has implicitly addressed various aspects of negotiations; Departures from decision maker rationality which may seriously affect negotiation issues.