Universal basic income proposes providing instalments of constant magnitude to all. One problem with a stable basic income across life is that it seems unfair to shorter-lived persons, who are worst-off due to premature death and receive less over their whole lives. Basic capital solves this problem by providing a one-off grant to the young, but I argue that it mistreats long-lived persons, as it does not guarantee their real freedom across life. There is a dilemma between these (...) proposals regarding their respective unfairness to the short- and long-lived. The solution I propose is a net basic income of decreasing magnitude until a specific age, after which the income is constant. This solution is compatible with constant income benefits across life, and it offers a fair answer to the problem of unequal longevity, a widely neglected but essential challenge in debates about basic income. (shrink)

This paper reports the results of an economic lab experiment designed to test the impact of Basic Income (BI) on wages and productivity. The experimental design is based on the classic gift exchange game. Participants assigned the role of employer were tasked with making wage offers, and those assigned as employees chose how hard they would work in return. In addition to a control without any social security net, BI was compared to unemployment benefits, and both types of cash (...) transfers were tested at two levels. The results are that wage offers were increased in both the BI and unemployment benefit treatments compared to the control. The higher-level BI treatment also significantly increased effort. Further experimentation could shed more light on how the potential extra value created in the labor market through increased productivity would be divided between employers and employees. (shrink)

For transition economies, income inequality is positively correlated with the share of output produced in the informal economy. Increases in income inequality also tend to be correlated with increases in the share of output produced in the unofficial economy. These hypotheses are supported significantly by empirical data for sixteen transition economies between 1987 to 1989 and 1993 to 1994. Various causal mechanisms may operate in both directions, an increasingly large informal economy causing more inequality due to falling tax (...) revenues and weakened social safety nets, and increasing inequality causing more informal activity as social solidarity and trust decline. (shrink)

The Welfare State is a key policy issue of the 1990s. The essays in this book depart from much of the recent economic debate in emphasising the positive contributions of the Welfare State, and in assessing its efficiency in relation to the objectives which it is intended to achieve. These objectives are not just the alleviation of poverty but more broadly the provision of security and the redistribution of income. Part A of the book sets the current debate in (...) the context of the current evidence about income inequality and poverty in Europe. Part B analyses the existing role of the Welfare State, with particular reference to retirement pensions and unemployment benefit. Part C investigates proposals for reform and security. What is the case for greater targeting? How can we design a social safety net? What is the future of European social protection policy? (shrink)

The following essay analyzes the arguments made by the principal academic proponent of income taxation, Columbia University economist E. R. A Seligman, after it was found to be unconstitutional in 1894. Seligman thought that the prevalent theory of just taxation, that it should be based on a natural right to one’s person and property, was wrong. The principal American philosophical proponent of this natural rights-based approach to taxation was the late Brown University philosopher and economist, Francis Wayland. The essay (...) analyzes the flaws in Seligman’s contention that there are no natural rights and, therefore, no natural property rights, so that taxation could not be justified by the benefits received for the protection of such rights. Instead, he claimed taxation should rest upon a person’s financial capacity. Since that capacity would be most accurately measured by net worth, we would have expected Seligman to endorse a proportionately assessed net worth tax (which was commonly used by the states in the nineteenth century). Alternatively, he argued for an income tax progressively assessed. This essay argues that since income is only a portion of financial capacity, his argument fails. (shrink)

Between 2017 and 2019, Barcelona was one of the first European cities to implement a basic income experiment, the B-MINCOME pilot, aimed at reducing poverty and social exclusion in a low-income area of the city. A new cash grant was designed along with a package of active policies. Four modalities of participation were then established depending on two criteria: whether attending these policies was mandatory or not, and whether participants’ additional income altered the amount of the grant (...) or was instead net added on top. The context which initially moulded the pilot is firstly explained. Then, the cash schema and the active policies are described followed by an explanation of its experimental design. The main results at individual, community and institutional levels formerly released in the official reports are now integrated and jointly addressed. Finally, conclusions discuss some issues raised by the pilot’s results in light of the findings gathered in other similar basic income experiments. (shrink)

The say-on-pay regulation in the Dodd-Frank Act requires publicly-traded U.S. firms to hold a nonbinding, advisory shareholder vote on executive compensation. Advocates claim that SOP voting gives shareholders a mechanism to hold managers and boards more accountable. Critics contend that SOP votes may simplistically reflect shareholders’ reactions to the overall value of CEO compensation or the firm’s net income. However, based on prior research, we contend that market participants’ SOP votes are likely to consider current income attributes. For (...) example, the market punishes firms that do not meet or beat benchmarks such as analyst earnings expectations, and that shareholders scrutinize the quality of the income sources of firms that consistently meet/beat analyst expectations. We thus expect that more shareholders will provide ‘agree’ SOP votes for a firm that consistently meets/beats analyst forecasts and does so when net income does not include nonrecurring gains. Further, we consider whether perceptions about the fairness of CEO compensation play a mediating role in the relationship between the interaction of these two current income attributes and SOP votes. Results from an experiment using evening MBA students as participants indicates that the two current income attributes significantly interact with respect to the percentage of agree SOP votes, and that compensation fairness perceptions fully mediate this relationship. Further, the mediating effect of compensation fairness perceptions is robust to including CEO-level and other determinants found in prior research. We conclude with a discussion of our findings and their implications for public policy and research. (shrink)

The cost of basic income is typically estimated for a particular year. However, to assess the financial feasibility of basic income, it is also important to consider how much basic income will cost in the future. This is especially important in countries experiencing an ageing population, where the proportion of workers is expected to shrink. This article considers basic income as a universal life annuity and develops two models based on actuarial concepts to estimate the flat (...) tax rate required to finance basic income. The first model considers the cost of basic income over the lifetime of the current population and the second model additionally considers changing population dynamics. The proposed models are conceptually simple, providing a straightforward way to assess the financial feasibility of basic income. Using Singapore data, the models show that the monthly cut-off income separating net contributors and net recipients is around $2710 and benefits around 39 % of adult residents. A tax rate of around 22 % is required to support a basic income of $600. (shrink)

The pandemic has exposed the costs of job and income losses. Emergency cash transfers can mitigate the worst immediate effects on people who lack access to safety nets. This research note provides estimates for a potential Temporary Basic Income for poor and near-poor people across 132 developing countries, as well as the minimum cost of income support sufficient to mitigate the pandemic-induced poverty increase. The total monthly cost of the TBI ranges 0.27–0.63% of developing countries’ combined GDP, (...) depending on the choice: top-ups on each country’s average incomes up to a vulnerability threshold; transfers based on each country’s median standard of living; or uniform transfers. This note argues that some form of TBI is within reach and can inform a larger conversation about how to build comprehensive social protection systems that make the poor and near-poor more resilient to economic downturns in the future. (shrink)

This article describes three utopian attempts to ameliorate the negative effects of income inequality that are less revolutionary than those of More and Bellamy. Rather than dispensing with money or gold, these three utopias modify existing institutions with the aim of lopping off the extremes of both wealth and poverty without upending the entire social and economic structure. Discussion includes Theodor Hertzka’s _Freeland_ (1891), Theodor Herzl’s _Altneuland: The Old New Land_ (1902), and H. G. Wells’s _A Modern Utopia_ (1905). (...) The three utopias provide potential solutions by undercutting causes of poverty and intergenerational wealth accumulation rather than by economic leveling, and by stressing a fresh start for each generation. The primary tools in this effort are education, universal healthcare, a safety net of basic income, fiscal transparency, confiscatory estate taxes, and common ownership of land. (shrink)

Prior research has showed that the subjective perception of objective wealth might be affected by various individual difference variables, such as one’s love of money, level of desires, or materialistic inclinations. This paper examines an impact of attitudes towards money on the relation between personal net income and household income, and its subjective evaluation, measured as financial satisfaction and subjective economic well-being. The results of two studies revealed that the affective dimension of money attitudes partially mediated the relationship (...) between income and financial satisfaction. Moreover, the instrumental dimension of attitude towards money moderated this relationship: The relationship between the two was stronger for individuals highly concentrated on money management than for those with low scores on this factor. (shrink)

For decisions whose consequences accrue over time, there are several possible techniques to compute total utility. One is to discount utilities of future consequences at some appropriate rate. The second is to discount per-period certainty equivalents. And the third is to compute net present values (NPVs) of various possible streams and to then apply the utility function to these net present values. We find that the best approach is to first compute NPVs of various possible income streams and then (...) take the utility of such NPVs. We show the drawbacks of other alternative models of evaluating income streams. The article discusses the advantages of the power and logarithmic forms in the modeling of time preference. These are the only forms for which utility of income and utility of consumption are strategically equivalent. Further, these forms permit the flexibility in the choice of a time period (e.g., monthly or quarterly) without modifying the utility function, thus simplifying analysis. (shrink)

Policy decisions during and after the New Deal tied the U.S. social contract to the employment contract, by conditioning eligibility and benefit levels for core welfare-state programs on work status and performance. The resulting system of social provision, however, embodied a set of assumptions about labor-market conditions that began to unravel with the structural economic shifts that began in the mid-1970s. Work was expected to provide open doors to employment, stable floors of security and stability over time, income ladders (...) promising adequate and rising earnings, and safety nets providing public and/or private protections against unforeseen or unavoidable hardships. Each of these assumptions was undermined by fundamental changes in the market, and this, in turn, has redefined patterns of social provision. As a result, core welfare-state programs have become less effective at meeting their own objectives of providing adequate social protections for rising numbers of working Americans. These trends preceded the recent recession and weak recovery, and cannot be reversed by the return of robust growth or pre-recession employment levels, in the absence of more fundamental change in the social contract. The roots of the current dilemma lie in the 1930s-40s, when politically mobilized employers fought alongside conservative policymakers to constrain the scope of the original system of social protections during and after the New Deal. In recent decades, they have battled to keep even this limited system from reaching those it was intended to assist, by blocking or limiting reform initiatives in areas such as employment policy, the minimum wage, health and pension insurance and modernization of the unemployment compensation system. (shrink)

The traditional mission of safety net hospitals has been charity, providing the best healthcare for all individuals no matter their ability to pay. The focus has been on vulnerable populations that are low-income, uninsured, and other upstream circumstances that manifest downstream as poor health, poor health outcomes, and repeated high-cost interventions that fail to break cycles of perpetual health instability. Safety net hospitals are committed to serving their populations, even if only temporarily, through provision of subsidies and filling gaps (...) that exist in patients’ lives. These interventions do not lead to the elimination of gaps, hence cyclical health instability persists. It is a new day in healthcare and what it means for people to be well. The focus is on improving health outcomes by addressing root causes of health instability such as unstable housing, income, education, and access to affordable healthy foods. This gives us pause to reflect on the traditional mission of safety net hospitals and the impact of charity in isolation. Are safety net hospitals missing an opportunity to mitigate and eliminate perpetual health instability? Can they shift the paradigm of healthcare for vulnerable populations to alter their quality-of-life course? To move forward, safety net hospitals have to change their mind set and existing narratives about what is possible for vulnerable populations to achieve. These historic giants in healthcare have an opportunity to use their assets and employ a methodology of disruption and innovation to shift the mission of safety net healthcare from charity to equity. (shrink)

The present article offers three critiques of the universal basic income guarantee (BIG) proposal discussed by Standing in this volume. First, there is a fundamental tension between the way income in a monetary production economy is generated, the manner in which BIG wishes to redistribute it, and the subsequent negative impact of this redistribution on the process of income generation itself. The BIG policy is dependent for its existence on the very system it wishes to undermine. Second, (...) the macroeconomic effects of BIG on contemporary economies that use modern money are destabilizing. The job guarantee (JG), by contrast, stabilizes both the macro-economy and the currency while helping transform the nature of work itself. Finally, the employment safety-net in Standing’s piece is not an accurate representation of the modern JG proposals – a confusion which this paper aims to remedy. (shrink)

Evolutionary theory predicts that social status and fertility will be positively related. It also predicts that the relationship between status and fertility will differ for men and women. This is particularly likely in modern societies given evidence that females face greater trade-offs between status and resource acquisition and fertility than males. This paper tests these hypotheses using newly released data from the 2014 wave of the Survey of Income and Program Participation by the US Census, which has the first (...) complete measures of fertility and number of childbearing partners for a large, representative, national probability sample of men and women and also contains comprehensive measures of economic status as measured by personal and family resources, including income from all sources and all assets. Multivariate analyses show that personal income is positively associated with total fertility and number of childbearing unions for men only. For men, personal net worth is positively associated with number of childbearing unions; it is also positively associated with fertility for married men with a spouse present. These findings support evolutionary predictions of a positive relationship between status, access to mates, and reproductive success for males. Whereas personal income and personal net worth are negatively associated with total fertility and number of childbearing unions for women, family income is positively associated with total fertility for women. For married men living with a spouse, family income is negatively associated with total fertility. These findings are consistent with evolutionary theory given the existence of greater trade-offs between production and reproduction for women in an advanced industrial society. For women and men, family net worth is negatively associated with number of childbearing unions and fertility. Implications are discussed. (shrink)

There is currently an evidentiary gap in the scholarship concerning medical tourism's impact on low- and middle-income destination countries (LMICs). This article reviews relevant evidence that exists and concludes that there are signs of correlation between medical tourism and the expansion of private, technology- intensive health care in LMICs, which has largely remained out of reach for the majority of the local patients. In light of this health care inequity between local residents and medical tourists in LMICs, we argue (...) that the presumption should not be in favor of medical tourism and that governments have a legitimate interest in seeking to regulate this industry to ensure that the net effects for their citizens is positive. Moreover, sending countries, particularly those in the developed world, have the responsibility to adopt public policies to diminish demand on the part of their citizens for medical tourism and to work with LMICs to ensure that the growth of medical tourism does not occur at the expense of the poorest of the poor. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Operating in a Contemporary Safety NetJason D. KeuneIt is summer, and I have just started my fourth year of general surgery residency, having just returned from two years in the lab. My “lab years” were spent as a Scholar–in–Residence of the American College of Surgeons. The scholarship that I engaged in included obtaining an MBA and a Graduate Certificate in Professional Ethics. The ethics component was self–designed with help (...) from an advisor, and was made up of graduate courses in political theory, healthcare financing law and bioethics. To say that I was reflective as I returned to the clinical rotations of the fourth year of residency would be understated.During this two–year period, I did not operate. I did do some clinical work during this time, but there wasn’t anyone in town willing to hire a partially–trained surgeon to do anything operative. I ended my third year of residency very happy with my technical skills, and was not sure just how these skills would survive a two–year hiatus. The challenge, as I thought of it then, would be to return to clinical rotations with this insecurity in mind and try to gain insight into just how rusty my skills were in a short period of time, and rectify them. I was in for a surprise.I felt a chill of trepidation when I discovered that the rotation that had been selected for me to return to was one in which I would be assigned to operate on and care for a low–income population of uninsured or underinsured patients with surgical problems—with minimal attending supervision. The patients were referred from the Federally Qualified Health Centers in town. The rotation had arisen from altruistic roots. The surgical service, provided at a large, academic urban hospital, was established when the city’s last remaining public hospital closed its doors for surgical patients. The service was an upright attempt to provide surgical continuity for this population. As I started the rotation and performed my first surgeries in two years with very minimal supervision, I realized that I would be participatory in what sums to a thoroughly unjust healthcare system. I would be caught in a swirl of humanitarian justice celebrated and a focus on a justice that seemed to fall short of a mark.The indigent hospital itself managed the clinic with a full complement of staff befitting a contemporary surgical clinic, albeit with a rather rudimentary computer system. The recordkeeping mechanism in our surgical office, however, was done without administrative assistance. We occupied a small room amongst the academic surgical offices at our home institution. The chief resident sat at a large [End Page 12] desk, the intern at a smaller desk, and the medical student had a chair and a laptop. The recordkeeping mechanism tracking who needed surgery, who had had surgery, and who needed follow–up on pathology was maintained by all members of the team. It involved one labyrinthine Excel spreadsheet, with multiple tabs, and a complex color–coordinated scheme of organization. The team would scan the entire thing on a daily basis to make sure nothing would be missed.When it came time to schedule a patient for the operating room, it was my responsibility as a chief resident to get an attending to “cover the case”, which amounted to finding an attending who agreed, at the bare minimum, to be present for the “critical portion” of the case. If the case was complex or very difficult, an attending surgeon would have to be sought who would scrub in and help perform the procedure. Not every attending would cover a charity case—the reasons why were not forthcoming. One surgeon would scrub every case he was asked to cover, stating that he felt every patient should have the same chance at the best treatment. Another would come to the room, but sit along the wall and review manuscripts as we operated, there to grant reassurance, and answer questions, but not, presumably, to direct the overall decision–making. All patients with breast cancer were seen, and operated on by one very dedicated breast surgeon with a humanitarian bent.I... (shrink)

The American food system has produced both abundance and food insecurity, with production and consumption dealt with as separate issues. The new approach of community food security (CFS) seeks to re-link production and consumption, with the goal of ensuring both an adequate and accessible food supply in the present and the future. In its focus on consumption, CFS has prioritized the needs of low-income people; in its focus on production, it emphasizes local and regional food systems. These objectives are (...) not necessarily compatible and may even be contradictory. This article describes the approach of community food security and raises some questions about how the movement can meet its goals of simultaneously meeting the food needs of low-income people and developing local food systems. It explores the conceptual and political promise and pitfalls of local, community-based approaches to food security and examines alternative economic strategies such as urban agriculture and community-supported agriculture. It concludes that community food security efforts are important additions to, but not subsitutes for, a nonretractable governmental safety net that protects against food insecurity. (shrink)

Voor de taalgebruiker spreekt taal vanzelf, maar de taalonderzoeker staat voor raadsels. Woordvormen lijken in niets op hun betekenis. En taalconstructies lijken onlogisch in elkaar te zitten. Toch kunnen we in een enkele zin onze bedoelingen tot in de subtielste nuances duidelijk maken. We hebben geen toegang tot het bewustzijn van de Ander maar kunnen desondanks gedachten met elkaar uitwisselen. We kunnen de werkelijkheid met elkaar bespreken en fictieve werelden met elkaar delen alsof ze toch ergens buiten onszelf bestaan. De (...) taalgebruiker heeft er allemaal geen moeite mee. In De magie van taal brengt Net Koene stap voor stap in kaart wat zich in ons hoofd afspeelt wanneer we naar de Ander luisteren. Ze isoleert taalvormen, woorden, constructies, toonhoogte- en ritmekenmerken die we als informatief herkennen in wat de Ander zegt. Ze laat zien hoe al die vormen systematisch hun eigen bijdrage leveren aan onze voorstelling van waar de Ander het over heeft. De auteur toont deze processen vanuit een denkbeeldig alwetend perspectief, in dit boek Omega genoemd. Binnen dit theoretische kader legt ze per hypothese verband tussen wat in het bewustzijn opkomt en de machinerie van het brein: hoe vormt de wereld van onze zintuigen zich, hoe komt ons voorstellingsvermogen tot stand, hoe transformeert de zintuiglijke wereld in een bespreekbare wereld? En vooral: hoe werkt het dat we de inhoud van ons bewustzijn op dat van de Ander kunnen afstemmen? (shrink)

Jeff Bernard was a distinguished semiotician, always au courant with the main accomplishments in the field. Although Jeff himself had specialized in socio-semiotics, his architectural training and his artistic youth had lent him a really open mind, able to comprehend almost everything.Jeff Bernard was also an excellent administrator. He and Gloria organized countless international conferences, most of them based in Vienna (at the Institute for Socio-Semiotic Studies Jeff was the director of ), but also in other places in Austria, Germany, (...) Italy. All of them were a success. Jeff ran the ISSS almost single-handed. He edited books (he published three of mine, among many, many others), anthologies, semiotic journals. He knew how to raise funding, of which the whole semiotic community benefitted. In 2003, he acted as my “impresario”, as he jokingly said, and organized a lecturing tour through Central Europe for me.Jeff was also a wonderful host; he considered his guests as part of the family and treated them accordingly. Many were the times when he picked me up from one Viennese railway station or the other, or when he drove me there, when I stopped in Vienna, to or from other places. It was owing to Jeff and Gloria that I discovered Grinzig, Baden, and various other cozy places in and around Vienna. Last but not least, it was also due to Jeff and Gloria that I discovered the charm of many Viennese restaurants.Jeff was kind and generous, elegant and discreet. He helped quite a lot of semioticians to forward their careers, and more important still, he did it unobtrusively. Jeff was also a likeable person, with an entertaining conversation and a fine sense of humor.“I am a Feminist”, Jeff once said. (For the sake of historical accuracy, it was in September 1997, round a dinner table at the Early-Fall School of Semiotics, thenheld in Bankya, Bulgaria). And he further expanded: “Otherwise, we couldn’t be living with Gloria. And my life would be pretty difficult, virtually surrounded as I am by so many professional women. But they all think I am a Feminist, and they are happy to work for my benefit. So I sit at my desk in Vienna, and my women colleagues from all over the world send me contributions for this and that, come over to participate in conferences, etc. It pays being a Feminist”.“Ich bin ein Berliner”, said Jeff on another occasion. For historical accuracy, it was in September 2003, during the conference celebrating his 60th birthday, in answer to a remark made by Roland Posner. It seemed a humorous statement, and everybody smiled. But I think this was true in spirit. These few lines, as well as (I suppose) those written by other colleagues who have contributed to the present issue, are meant to illustrate this self-definition. Jeff had always sympathized with the less privileged people everywhere. (shrink)

Feminist critiques of the social sciences are based on the assumption that because the social sciences were developed for the most part by white, middle-class, Western men, the perspectives of women were ignored. This book offers an approach for integrating gender-related content into the social work curriculum. The distinguished contributors discuss the shortcoming of dominant knowledge, address the pressing need for a gender-integrated curriculum, consider the pedagogies consistent with the implementation of an integrate curriculum, address specific areas in social work (...) education, assessing content, and assumptions, and discuss strategic issues for the implementation of curricular knowledge. (shrink)

The average net income of physicians in the USA is more than four times the average net income of people working in all domestic industries in the USA. When critics suggest that physicians make too much money, defenders typically appeal to the following four prominent principles of economic justice: Aristotle's Income Principle, the Free Market Principle, the Utilitarian Income Principle, and Rawls' Difference Principle. I shall show that no matter which of these four principles is assumed, (...) the present high incomes of physicians cannot be defended. (shrink)

This study investigates whether the market valuation of the two summary accounting measures, book value of equity and net income, is higher for firms with reputation for sustainability leadership, when compared to firms that do not enjoy such reputation. The results are interpreted through the lens of a framework combining signalling theory and resource-based theory, according to which firms signal their commitment to sustainability to influence the external perception of reputation. A firm’s reputation for being committed to sustainability is (...) an intangible resource that can increase the value of a firm’s expected cash flows and/or reduce the variability of its cash flows. Our findings are according to expectations and show that the net income of firms with good sustainability reputation has a higher valuation by the market, when compared to their counterparts. (shrink)

The objective of this paper is to analyze the effect of privatization on the performance of firms by using a panel data set of 38 companies that were privatized in Europe. We compare the profit, profitability, total product, operating efficiency, net income, employment, leverage and risk of these SOEs before and after their privatization. The legal environment, regulation, goals of privatization and competition characterize each sector, which is why we split the total sample into sectors. Our results indicate that (...) the performance of companies in the utility industry is significantly better after privatization; however, we cannot assert this for the other sectors. (shrink)

The management control system aids administrators in guiding a business toward its organizational plans; as a result, management control is primarily concerned with the execution of the plan and plans. Financial and nonfinancial criteria are used to create management control systems. The financial element focuses on net income, earnings, and other financial metrics. The two components of leadership strategy in this study are cost and differentiation, which highlight the strategy of differentiation in attaining higher quality due to the robust (...) strategy’s attention on a particular area of the company. In this study, we presented a novel method named deep interaction neural network to predict the performance of the manufacturing companies based on their leading competitors using features cost leadership and differentiation strategies. Moreover, the management control system is classified into two financial and nonfinancial factors based on machine learning methods. Based on the results, the presented factors can accurately estimate the company’s performance based on management control criteria with a 93.48% R-square. Moreover, it can be seen that the DT method is presented with higher classification performance values. (shrink)

Auty (1993) and Sachs and Warner (1997) reignited the line of argument of the resource curse: the idea that natural resource wealth has negative net effects on the development of nations. However, the result has been found to be highly dependent on the types of variables used to represent natural resource wealth (Brunnschweiler, 2007) and similar questions can raised about variables used to represent being “cursed”. In this paper we pursue the hunt for better variables by looking at the relationship (...) between average income from natural resources per person and a wide array of key development indicators: Adjusted National Net Income, GDP per capita, an aggregate of services and industrialized goods, inequality measured by the Gini index, Poverty, the Human Development Index, the Prosperity Index, the Social Progress Index and the Fragile State Index. We do this on a global scale between 1970 and 2010. On the contrary, we find that natural resource wealth is positively linked to development. We suggest, alternatively, that much of the actual cases where abundant natural resources hurt nations have been cases of common theft by tyrants, often backed by imperial powers. (shrink)

Recent changes to accounting standards for employee stock-based compensation with contingent features are examined. The implementation of FAS 123R by the Financial Accounting Standards Board in December 2005 now requires the fair value of such expenses to be recorded in net income. This accounting change is now impacting the reported financial statements of firms that have been substantial users of employee stock options. This provides an opportunity to directly observe the actual impact FAS 123R is having on such firms. (...) Arguments for and against mandatory expensing are reviewed and an assessment of the contrasting positions provided. Significant limitations of current reporting requirements for executive stock options identified in Poitras (2004) still have not been addressed. (shrink)

The FASB in its Conceptual Framework has set high principles in the ethics of standard-setting in accounting. This paper concentrates on what the FASB calls the cost/benefit constraint, i.e., the commitment to setting an accounting standard only when the benefits of the standard exceeds the costs of that standard toall stakeholders. This constraint is supposed to take precedence over other concerns, such as neutrality (freedom from bias) of account information.The major conclusion of this paper is that a conflict exists between (...) the FASB's commitment and its practice. There is no evidence that the FASB has always made a costs and benefits judgement with respect to proposed standards. In the cases when such a judgement is made, the FASB discounts social costs; therefore, it is not considering costs to all stakeholders. At the same time the FASB discounts social costs, it seems to have an undue concern for standards that do not increase the volatility of net income. The Conceptual Framework explicitly defines costs as the costs to society as a whole. (shrink)