Little is known about the role of specific health problems in affecting labor market productivity. Even less is known about gender differences in the labor market effects of such health problems. Current knowledge of health effects is based largely on samples composed exclusively of men, a common practice in both economics and health research. In the latter case, even a congressional mandate to incorporate females in study samples is reputed to have had little effect (Patricia Schroeder, 1990). In this study, we attempt to determine the structure of gender differences in labor market responses to alcoholism. We use a relatively new data source that allows such comparisons by gender in a large community-based sample. Previous studies have established that there are significant gender differences in labor market behavior. Differences in prevalence rates of alcoholism by gender are also well established. It is estimated that 3 percent of females are currently suffering from alcoholism and twice that many have exhibited symptoms at some time; for males the numbers are 10 and 20 percent, respectively. There is some medical evidence to indicate that physiologically, women and men respond differently to alcohol. For example, a recent study suggests that women have greater vulnerability to the acute and chronic health conditions associated with alcoholism (Mario Frezza et al., 1990).

The theory of auctions has developed extensively since Robert B. Wilson's (1977) seminal paper. Due to the complexity of equilibrium strategies, however, empirical researchers have been slow to incorporate and test the most basic theoretical precepts.' Typical empirical studies estimate ad hoc bidding models, with no attempt to ascertain whether the implied behaviors are theoretically plausible. The recent paper by Stuart E. Thiel (1988) attempts to bridge this gap. Thiel obtains closed-form equilibrium bidding functions that are theoretically motivated and linear in parameters, and which facilitate empirical estimation and testing. If widely applicable, Thiel's empirical approach would constitute a major methodological breakthrough. Unfortunately, Thiel's approach applies only in special cases that are of limited practical interest. Linear bidding strategies emerge only under circumstances that are unlikely in the real world. The limited range of Thiel's approach may not be apparent to casual readers of his paper. Even when linear strategies do exist, they are not unique under the special assumptions of Thiel's model. For each Nash equilibrium in linear strategies, there exists a related family of nonlinear strategies. Thus, further justification must be found for basing empirical research on the linear specification. We also note a significant error in Thiel's work. The symmetric strategies he derives on the basis of order statistics do not constitute a Nash equilibrium. We derive proper expressions for the symmetric Nash strategies and discuss a specification error in Thiel's regression analysis that would account for the mixed results obtained in his application to the highway-construction industry.

ABSTRACT We provide evidence that taxes affect equity valuation by studying British investment trusts having otherwise identical classes of cash‐ and stock‐dividend‐paying shares outstanding. We study 1969–1982, a period in which there were two dramatic changes in tax policy. We find that stock‐dividend shares, which are convertible into cash‐dividend shares, sell at premiums when the tax system favors capital gains and at discounts when the tax advantage of capital gains is reduced. After the 1975 elimination of the tax advantage to stock‐dividend shares, we observe that investors convert virtually all stock‐dividend shares into cash‐dividend shares.

We provide evidence that taxes affect equity valuation by studying British investment trusts having otherwise identical classes of cash- and stock-dividend-paying shares outstanding. We study 1969–1982, a period in which there were two dramatic changes in tax policy. We find that stock-dividend shares, which are convertible into cash-dividend shares, sell at premiums when the tax system favors capital gains and at discounts when the tax advantage of capital gains is reduced. After the 1975 elimination of the tax advantage to stock-dividend shares, we observe that investors convert virtually all stock-dividend shares into cash-dividend shares.

ABSTRACT This paper provides support for the certification role of venture capitalists in initial public offerings. Consistent with the certification hypothesis, a comparison of venture capital backed IPOs with a control sample of nonventure capital backed IPOs from 1983 through 1987 matched as closely as possible by industry and offering size indicates that venture capital backing results in significantly lower initial returns and gross spreads. In effect, the presence of venture capitalists in the issuing firms serves to lower the total costs of going public and to maximize the net proceeds to the offering firm. In addition, we document that venture capitalists retain a significant portion of their holdings in the firm after the IPO.

ABSTRACT We examine the returns of stocks in Cowles Industrial Index before and after the introduction of personal income taxes in 1917. This is distinct from earlier studies because we cross‐sectionally analyze the relationship between the returns of the individual stocks and measures of tax‐loss selling potential and size. We find that excess returns at the turn‐of‐the‐year and for the month of January were not significant until after 1917. These results provide strong support for the tax‐loss selling hypothesis as an explanation for the January seasonal in the returns of small firms.