STOCK PRICE EFFECTS OF PERMANENT AND TRANSITORY SHOCKS

This paper exploits the long-run equilibrium relationship between stock prices and dividends, implied by the present value model, to structurally identify a dynamic model that governs the behavior of stock prices. The innovations to the data are dichotomized into those that leave a permanent imprint on both series and those that have only transitory effects. Unlike previous studies, however, we do not impose arbitrary identifying restrictions to decompose the joint process, restrictions that may not be consistent the data. ( JEL C12, C32, E24)     

INTEGRATED OPERATIONS: A PROPOSAL FOR OPERATIONS MANAGEMENT TEACHING AND RESEARCH

This paper, addressed to professors of operations management (om) in research institutions, suggests that the long-term academic viability of our discipline requires the generation of a theory uniquely associated with the practice of OM. Such a theory will rest on foundations laid by other disciplines, but must find its own unique synthesis that attends to the problems of OM practice. The paper proposes a framework that recognizes physics, social psychology and philosophy as foundational disciplines for an integrative theoryof OM and suggests which concepts from those disciplines may find voice in such a theory.     

MALE MARITAL WAGE DIFFERENTIALS: TRAINING,PERSONAL CHARACTERISTICS,AND FIXED EFFECTS

Using the National Longitudinal Survey of Youth 1979, we replicate previous estimates of the marital wage differential for white men, extend the analysis to African American men, then explain the within and between race differentials. We first control for formal job training, then for cognitive skills, parental background, and self‐esteem with little effect. By contrast, the white differential but not the black differential disappears in fixed‐effects estimation. We reconcile the cross‐section/panel differentials by focusing on the distinct identification conditions employed by each technique. Men who never change marital status play a significant role in white cross‐sectional estimates. (JEL J31, J12)     

National character,regional culture,and the values of Canadians and Americans

Cette étude analyse des données ayant fait l'objet de sondages à l'échelle nationale et qui serviront à evaluer la thèse de S.M. Lipset en regard avec certaines divergences caractérisant la population canadienne et américaine. L'étude traitera principalement d'une question, à savoir si les particularités régionales de chacun des deux pays constituent un élément aussi fondamental que leur dissemblance si l'on compare leurs valeurs. Les résultats du sondage indiquent que la barrière entre le Canada et les États-Unis ne constitue pas un critère majeur en regard avec les valeurs faisant l'objet de la présente étude. Il semble que les divergences d'ordre culturel portent plutǒt sur les trois régions principales suivantes: la province de Québec qui est relativement libérale, alors que le sud des États-Unis qui est plus conservateur, et un secteur plutǒt modéré qui englobe le reste de la population des deux pays. Les implications concernant la thèse de Lipset et l'étude des régionalismes canadiens et américains sont explorées brièvement. This paper brings together two related but distinct issues in the analysis of culture and values in Canada and the United States. The first of these is Lipset's well-known thesis on the differences in national character and belief systems between Canadians and Americans. The second issue is the purported existence of distinct regional cultures within both countries. Using national sample survey data, we assess both cross-national and regional differences on a range of attitudes and perceptions. The results indicate that the pattern of regional cultures is not significantly affected or defined by the national border separating Canada and the United States. Instead, hierarchical tests of several different models suggest that, with a few exceptions, the map of regional cultures involves three major segments: a relatively left-liberal Quebec, a more conservative southern United States, and a comparatively moderate sector that largely encompasses the remainder of the two countries. The implications for Lipset's thesis on Canadian-American differences, and for the analysis of regional distinctions in both nations, are briefly discussed.     

PRESSURE POLITICS AND CONSUMER INTERESTS: THE SUGAR ISSUE

The perpetual "Battle of the Sugar Bowl", as it enters a newphase in its relation to national defense policies, continuesto affect consumer interests. The April 1938 issue of the QUARTERLYpresented an analysis of "Sugar and Public Opinion" by JohnE. Dalton. Currently, Mr. Baldwin presents his analysis of thecontending groups and the issues at stake. He first became interestedin this problem during the fight over the sugar schedule ofthe Hawley-Smoot Tariff. He has worked in the interest of, amongothers, the American Bottlers of Carbonated Beverages and theHershey Corporation, an American company producing and refiningcane sugar in Cuba, and is a member of the Cuban Committee ofthe National Foreign Trade Council.     

The Ipsative Process to Reduce Response Set Bias

Researchers who gather data from several different groups arefrequently faced with the problem of response set bias. Thispaper discusses the ipsative process, a technique which canreduce systematic response bias which exists between groupsin a study. The usefulness of the ipsative process is illustratedon cross-cultural research findings gathered in four countries