GOVERNMENT INTERVENTION TO PREVENT BANKRUPTCY: THE EFFECT OF BLIND‐BIDDING LAWS ON MOVIE THEATERS

In the 1970s motion picture studios increased their use of blind bidding and nonrefundable guarantees in an attempt to reduce the risks associated with producing a small number of large budget films. However, theater owners claimed that blind bidding and guarantees shifted risk to them and increased the likelihood of bankruptcy, because they were required to bid for the right to exhibit a movie without seeing it first. In response to the lobbying of theater owners, 24 states passed laws between 1978 and 1984 that banned blind bidding, while 7 states also banned nonrefundable guarantees. This paper provides the first empirical analysis of the conflicting claims made by theater owners and movie studios about the impact of these laws on the survival rates of independent theaters, admission prices, and delays in the release of movies. We find that the laws were not only ineffective in keeping theater owners at risk of bankruptcy from exiting the market; they may have been even detrimental to those theater owners converting theaters to multiplexes at that time. (JEL K, L)     

Institutional legacies in TNCs and their management through training academies: the case of transnational law firms in Italy

In this article we highlight the effects of heterogeneous institutional contexts on transnational professional service firms, a relatively poorly studied issue. Specifically, we provide empirical analysis of how the specificities of the Italian institutional context affect the activities of English legal professional service firms in Milan. This reveals the intimate connection between a variety of capitalism, place specific workplace cultures and practices, and the institution‐related challenges transnational professional service firms and all transnational corporations (TNCs) face. We also reveal the way institutionally generated differences at the level of work practices are managed in transnational law firms through worldwide training programmes designed to ‘govern’ the practices of workers in different parts of the TNC's network. This emphasizes the importance of studying attempts to manage institutional heterogeneity at the level of workplace practices, something often missed in existing mesoscale studies of TNC governance structures. Consequently, we highlight detailed empirical archaeologies that explore the direct links between institutions and practices as an important component of future research on the effects of institutions on TNCs.     

Policy Change and the Politics of Ideas: The Emergence of the Canada/Quebec Pension Plans

Insistant sur l'impact direct des idées sur le changement politique, les auteurs se penchent sur l'adoption du Régime de rentes du Québec (RRQ) et du Régime de pensions du Canada (RPC) de 1965, en examinant deux questions étroitement liées: 1) Pourquoi le gouvernement fédéral a‐t‐il décidé de créer au milieu des années 1960 un système public de pension proportionnel aux revenus, en plus du Programme de la sécurité de la vieillesse alors en vigueur? et 2) Pourquoi ce nouveau système présente‐t‐il un taux de remplacement plus élevé que celui proposé initialement, de même qu'un régime différent pour le Québec? De manière à répondre à ces deux questions, les auteurs analysent les débats menant à l'adoption du RRQ et du RPC. Stressing the direct impact of ideas on policy change, this article explores the adoption of the Canada and Quebec Pension Plans (C/QPP) in 1965 by addressing two closely related questions: in the mid‐1960s: why did the federal government decide to create an earnings‐related public pension system on top of the existing Old Age Security program? Second, why did that new system feature a replacement rate higher than initially proposed as well as a separate scheme for the province of Quebec? In order to answer these two questions, the article analyzes the debates leading to the enactment of the C/QPP.     

HOME COMPUTERS AND EDUCATIONAL OUTCOMES: EVIDENCE FROM THE NLSY97 and CPS*

Although computers are universal in the classroom, nearly 20 million children in the United States do not have computers in their homes. Surprisingly, only a few previous studies explore the role of home computers in the educational process. Home computers might be very useful for completing school assignments, but they might also represent a distraction for teenagers. We use several identification strategies and panel data from the two main U.S. data sets that include recent information on computer ownership among children—the 2000–2003 Current Population Survey (CPS) Computer and Internet Use Supplements matched to the CPS basic monthly files and the National Longitudinal Survey of Youth 1997 (NLSY97)—to explore the causal relationship between computer ownership and high school graduation and other educational outcomes. Teenagers who have access to home computers are 6–8 percentage points more likely to graduate from high school than teenagers who do not have home computers after controlling for individual, parental, and family characteristics. We generally find evidence of positive relationships between home computers and educational outcomes using several identification strategies, including controlling for typically unobservable home environment and extracurricular activities in the NLSY97, fixed effects models, instrumental variables, and including future computer ownership and falsification tests. Home computers may increase high school graduation by reducing nonproductive activities, such as truancy and crime, among children in addition to making it easier to complete school assignments (JEL I2).     

Local Power Analyses of Goodness-of-fit Tests for Copulas

Abstract.  The asymptotic behaviour of several goodness-of-fit statistics for copula families is obtained under contiguous alternatives. Many comparisons between a Cramér–von Mises functional of the empirical copula process and new moment-based goodness-of-fit statistics are made by considering their associated asymptotic local power curves. It is shown that the choice of the estimator for the unknown parameter can have a significant influence on the power of the Cramér–von Mises test and that some of the moment-based statistics can provide simple and efficient goodness-of-fit methods.     

Everybody In? The experience of disabled students in further education

The authors report on a study of student attitudes towards disabled students in three colleges of further education. They found that many non-disabled students were not aware of the various issues facing disabled students at the colleges. Social contact between disabled and non-disabled students was not extensive, although those who had attended school with disabled pupils were more likely to have friendships with disabled students at college. Whilst non-disabled students were strongly supportive of inclusive education in principle, many saw inclusion in the mainstream as conditional on the particular impairment of an individual. Disabled and non-disabled students supported the view that early social and educational contact results in greater mutual understanding, and is of benefit to all students.