Committee Decisions under Alternative Procedural Rules: An Experimental Study Applying a New Nonmonetary Method of Preference Inducement

Committees operating with simple majority rule procedures and with closed rule procedures are studied. A new method (the duplicate method) was used to induce preferences. The results of the control experiments compare favorably to those for which monetary incentives have been used. In all cases the core is a relatively accurate model of committee choices

Committee Decisions under Alternative Procedural Rules: An Experimental Study Applying a New Nonmonetary Method of Preference Inducement

Committees operating with simple majority rule procedures and with closed rule procedures are studied. A new method (the duplicate method) was used to induce preferences. The results of the control experiments compare favorably to those for which monetary incentives have been used. In all cases the core is a relatively accurate model of committee choices

Mean reversion in annual earnings and its implications for security valuation

This article documents the long-horizon mean reverting character of annual earnings and tests the implications of such mean reversion for security valuation. First, both theory-based and nonparametric measures of earnings persistence decrease as the estimation order increases, revealing 40 percent less long-horizon persistence than expected under the commonly used random walk model. Second, the return responses to the earnings shocks are more closely related across firms to the higher-order measures of persistence that reflect significant long-horizon mean reversion. Third, the persistence measure derived from classical valuation theory outperforms the generic measure in explaining the return responses. Taken as a whole, these results provide evidence for significant mean reversion in the higher-order properties of earnings and for the stock market incorporating these properties in a manner consistent with classical valuation theory.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/47883/1/11156_2005_Article_BF01082663.pd

Government spending and economic growth in the European Union countries: an empirical approach.

The relationship between government spending and economic growth is an important and controversial issue in modern societies. In this paper, the correlation between economic growth and government expenditure is studied. The analysis is based on data for the European Union countries and panel data techniques are used

Policy volatility and growth

The paper aims to examine how fiscal and monetary volatility might affect the balanced economic growth rate using a standard monetary growth model characterized by nominal wage rigidity and productive public spending. The model shows that any type of shock — monetary or fiscal — can generate either a negative or positive relationship between short-run volatility and long-run growth, critically de- pending on the size of government and the elasticity of output with respect to labor/ capital. In particular, given the labor income share, it shows that excessive government spending may cause the impact of fiscal volatility on long-run growth to turn from positive to negative. In addition, a rise in the volatility of the monetary shock is capable of generating either an increase or decrease in the mean of growth. With the range of the labor share values in reality, the model produces results consistent with the fact that the relationship between volatility and growth is generally found empirically to be more negative in developing than in developed countries. The model can be seen as a further explanation for the ambiguous empirical evidence in the existing literature.info:eu-repo/semantics/publishedVersio