ADJUSTMENT TO PRODUCTION UNCERTAINTY AND THE THEORY OF THE FIRM

This paper considers the behavior of the firm which faces uncertainty in its production process but can adjust its output once the uncertainty is resolved. Ex post adjustment, unlike previous treatments, involves a marginal cost penalty if more output is required and a lowering of price if too much is produced. With ex post adjustment allowed in this fashion, it is found that nonlinear risk preferences do not affect the sign of the firm's marginal risk premium at optimum ex ante output. The firm will produce less output than under certainty whether it is risk averse, risk neutral, or prefers risk.     

Transnational class formation and spatialities of power: the case of elite competition in Bolivia

In this article, I argue that the neoliberal and counter‐neoliberal transitions in Bolivia secured the power of transnational capital within the country. In the 1980s and 1990s, Bolivia's mining elite used neoliberal strategies to undermine the interests of the country's agricultural elite and pursued a marriage of convenience with transnational capital that allowed both to enter state‐monopolized spaces of investment in mutually beneficial ways. In Bolivia's counter‐neoliberal turn, leftist social movements and political parties removed the elite from power but were dependent on transnational firms to help them use the country's natural resource wealth to fund programmes of socioeconomic change. Engaging theories of the transnational class formation, I assert that scholars need to acknowledge how different capitalist class fractions have distinct spatialities of power. In particular, it is necessary to distinguish between global elites that participate in local circuits of accumulation and local elites that participate in global circuits of accumulation.     

Regional Cultural Differences and Ethical Perspectives within the United States: Avoiding Pseudo‐emic Ethics Research

National cultures are often described as if they were homogeneous in spite of notable regional differences. As one example, there are significant differences between two distinct regions of the United States, Hawaii and Florida. This study provides a platform to exemplify a more regionally aware position for cultural and ethics research. Using select Hofstede cultural dimensions, regional differences were found in relation to both collectivism/individualism and uncertainty avoidance. The Hawaii sample had higher levels of collectivism and uncertainty avoidance, demonstrating unique regional‐cultural patterns within the United States. Regional samples were examined for potential differences in their general perception of what constitutes ethical business practice. While honesty appeared as a key trait across samples, significant differences emerged in the magnitude of importance between samples for integrity (which was more significant for the Hawaii sample) and loyalty (which was more significant for the Florida sample).     

OPTIMAL WAGE TAXATION WHEN HUMAN CAPITAL AND EMPLOYMENT ARE ENDOGENOUS

This paper studies how optimal wage tax conclusions from the classic two‐period life cycle model of human capital accumulation are affected by endogenizing the number of taxpaying workers. In the absence of a corrective policy, young individuals underinvest in human capital from a social perspective because tax premiums for transfers to nonworkers are not actuarially adjusted downward for human capital attainment. A combination of wage taxes and wage subsidies can restore proper price signals. Numerical simulations suggest that even modest employment elasticities can be sufficient to substantially impact the magnitudes and even the signs of optimal wage tax rates. (JEL H21, H3, J24)