[This study provides evidence that market segmentation affects the strength of the association between financial disclosure and net interest cost for new issues of municipal bonds. Previous studies (see, e.g., Amershi and Ramamurtie 1990; Cook 1982; Hendershott and Kidwell 1978; Kidwell et al. 1983) show that the geographic segmentation of primary markets for municipal bonds along regional and national lines is characterized by different sources and costs of information. Because little information is available from alternative sources for the less marketable bonds of smaller issuers which use regional markets, financial reporting variables are hypothesized to be associated more strongly with interest costs for these issues than for those of larger municipalities, whose bonds are typically issued in the national bond market. Cook (1982) argues that the costs of obtaining information about small issuers from alternative sources are relatively high. For these issuers, who also do not issue bonds frequently, regional underwriters may be the only informational intermediaries (other than rating agencies if the bonds are rated) between the issuers and investors (Kidwell et al. 1983). Thus, financial and other entity-specific information contained in the offering statement are expected to be weighted more heavily in pricing these bonds than for bonds of larger issuers. Although this differential-information hypothesis is analogous to Atiase's (1985) argument regarding differential predisclosure of information, our study assumes differential availability of information across market segments, and size alone is not likely to be an adequate proxy for segmentation. Our main analysis uses the nature of the underwriting syndicate, whether it is managed by a national or regional underwriter, to proxy for the relevant market segment. Previous studies of municipal accounting (see, e.g., Ingram and Copeland 1982; Wallace 1981; Wilson and Howard 1984) have provided evidence of an association between bond measures and accounting and auditing variables. However, the results were mixed and inconsistent, which may be attributable to differences in the entities examined (cities, counties, and school districts), the time periods examined, or definitions of variables. Also, differences in the mix of bonds issued in each segment may have contributed to the inconsistent results. By examining the relationship between accounting and auditing variables and bond interest costs separately for each segment of the primary bond market, our study provides useful evidence on the potential effect of different information environments on this relationship. Regression results based on a sample of 119 new municipal bond issues, partitioned on a measure of segmentation (regional vs. national underwriter), are consistent with the hypothesis that the association between the quality and quantity of financial disclosure and interest costs is stronger for municipalities that issue bonds in local or regional markets than for those that issue bonds in the national market. Our results suggest that future research in this area should consider the potential effects of market segmentation when testing the association between accounting or auditing variables and bond interest costs.]

Reviews two books. "Auditing Symposium X: Proceedings of the 1990 Deloitte & Touche," edited by Rajendra P. Srivastav; "University of Kansas Symposium on Auditing Problems," edited by Rajendra P. Srivastava.

Using longitudinal data, we study the processes of job mobility and wage growth among young men. During the first ten years in the labor market, a typical worker will hold seven jobs, about two thirds of his career total. The evolution of wages plays a key role in this transition to stable employment: wage gains at job changes account for at least a third of early-career wage growth, and the wage is the key determinant of job changing decisions among young workers. Job changing is a critical component of workers' movement toward the stable employment relations of mature careers.

We devise tests that distinguish between competitive (Walrasian), fully revealing rational expectations and noisy rational expectations equilibria based on their predictions concerning trading volume around public information signals. Empirical results strongly support the noisy rational expectations hypothesis. This indicates that a significant amount of noise exists (so that private information has value), but not enough to obfuscate entirely the information content of price. Our analysis also indicates that the dispersion of private information across traders has an impact on trading volume, but not on price.

Pamela H. Moomau, Rebecca B. Morton, Revealed Preferences for Property Taxes: An Empirical Study of Perceived Tax Incidence, The Review of Economics and Statistics, Vol. 74, No. 1 (Feb., 1992), pp. 176-179

This paper uses CPS data to analyze gender differences in black-white annual earnings trends over the 1970s and 1980s. We find that in at least two respects black women fared better than men over this period. First, due to decreasing relative annual time inputs for black males, but not black females, black women experienced increases in both annual earnings and estimated wages compared to white women, while black men gained only in terms of wages compared to white men. Second, since the gender earnings gap among whites was narrowing during this time, as black women's wages rose relative to white women's, they also made faster progress relative to white males than did black males. In other important respects, however, the experience of black men and women over the period was similar. First, for both groups, while earnings and wages relative to whites of the same sex rose during the 1970s, they stagnated or declined during the 1980s. Second, in contrast to the 1960s, younger blacks did not fare better than older blacks during the 1970s and 1980s. While in 1971, both unadjusted wage ratios and adjusted earnings ratios were highest within each sex group for labor market entrants, by 1988 these ratios were fairly similar across experience groups.