Showing papers in "Social Science Research Network in 1961"

The Management of Innovation

Abstract: Examines how organizations identify and respond to conditions of stability and change and classifies responses as appropriate or dysfunctional. Using case study and historical survey approaches, the authors formulate conclusions about organizations themselves, individual organization members, and sub-organizational combinations of members. These three perspectives correspond to the organization's goals, individual career aspirations, and internal politicking. Technical progress and development of new organizational forms proceed in tandem; advancement in either field augurs movement in the other field. The inventor requires a suitable milieu and new technology enables further sophisticated forms of organization. Matching the rise of modern industrial concerns, technological research and development has been increasingly professionalized and financially supported by large corporations and government. Firms in (then) newly created industries, such as electronics, face a unique difficulty. Unlike counterparts in established fields, new firms in these industries must respond to rapidly changing market conditions without the benefit of a management experienced in the exigencies of that sector. The authors examine common new-industry responses to planning needs. These include the transfer of technical staff to the sales force and assignment of user needs research to research and development staff. Two important organizational approaches are identified. The mechanistic approach, suitable for stable industries, is marked by precise definition of member function and is highly hierarchical. The organic approach is more appropriate to industries undergoing change and is characterized by fluid definitions of function and interactions that are equally lateral as they are vertical. (CAR)

The Achieving Society

Abstract: Examines the motivation for achievement as a psychological factor that shapes economic development. Refuting arguments based on race, climate, or population growth, the book instead argues for cultural customs and motivations - especially the motivation for achievement - as the major catalysts of economic growth. Considering the Protestant Reformation, the rise of capitalism, parents' influences on sons, and folklore and children's stories as shaping cultural motivations for achievement, the book hypothesizes that a high level of achievement motivation precedes economic growth. This is supported through qualitative analysis of the achievement motive, as well as of other psychological factors - including entrepreneurial behavior and characteristics, and available sources of achievement in past and present highly achieving societies. It is the achievement motive - and not merely the profit motive or the desire for material gain - that has advanced societies economically. Consequently, individuals are not merely products of their environment, as many social scientists have asserted, but also creators of the environment, as they manipulate it in various ways in the search for achievement. Finally, a plan is hypothesized to accelerate economic growth in developing countries, by encouraging and supplementing their achievement motives through mobilizing the greater achievement resources of developed countries. The conclusion is not just that motivations shape economic progress, but that current influences on future people's motivations and values will determine economic growth in the long run. Thus, it is most beneficial for a society to concentrate its resources on creating an environment conducive to entrepreneurship and a strong ideological base for achievement. (CJC)

Market Value, Time, and Risk

Abstract: (Revised 4/29/15, with minor edits by Craig William French)Abstract by Craig William FrenchThis paper reprints a slightly edited version of Jack L Treynor's 1961 CAPM manuscript, which has previously been unavailable to the public The author's facsimile of the original was obtained thanks to the kind generosity of Mr and Mrs Treynor Edits in the present version, which differ from the original, include minor typographical corrections and minor notation differences for some variables in the formulae Pagination is as in the original In 1958, Jack Treynor was employed by Arthur D Little That summer he took a three-week vacation to Evergreen, Colorado, during which he produced forty-four pages of mathematical notes on capital asset pricing and capital budgeting Over the next two years, Treynor refined his notes into what is in all likelihood the first CAPM Treynor gave a copy of this early model to John Lintner at Harvard in 1960 While in business school at Harvard from 1953 through 1955, Mr Treynor had taken nearly every finance course offered, and though he signed up for Lintner’s economics course he was forced to cancel due to a schedule conflict In 1960, John Lintner was the only economist he knew even slightly Treynor refined his 1960 model into the 45-page “Market Value, Time, and Risk” [the present paper] This paper, Treynor (1961), develops the CAPM using the concept of experiment space to quantify risk and risk relations Without his knowledge or encouragement, one of Mr Treynor’s colleagues sent the draft to Merton Miller in 1961, after Miller had moved to the University of Chicago from Carnegie Institute of Technology Miller sent the paper to Franco Modigliani at MIT in the spring of 1962, and Modigliani invited Treynor to embark on a program of graduate work at MIT under his supervision Treynor did so during the 1962-1963 academic year; in addition to Modigliani’s course, he took Bob Bishop’s price theory and Ed Kuh’s econometrics courses, among others By the fall of 1962, Treynor had consolidated the first part of Treynor (1961), on the single-period model, into “Toward a Theory of Market Value of Risky Assets,” and presented it to the MIT finance facultyA more complete description of the development of the Treynor CAPM may be found in French, Craig W, The Treynor Capital Asset Pricing Model Journal of Investment Management, Vol 1, No 2, pp 60-72, 2003 Available at SSRN: http://ssrncom/abstract=447580A reprint of Treynor's 1962 paper, “Toward a Theory of Market Value of Risky Assets,” may be found in French, Craig W, Jack Treynor's 'Toward a Theory of Market Value of Risky Assets' (December 28, 2002) Available at SSRN: http://ssrncom/abstract=628187

The Valuation of Human Capital

Abstract: The market mechanism places a value on those assets to which title can be transferred, and thus the market does evaluate land and capital goods in our economy. The market also provides rental values (wage rates) for labor but not capitalized values, and these are frequently essential for rational decision-making.2I t would be useful if we could develop a substitute for the market evaluation of labor resources. This involves establishing a conceptual framework for estimating the value of assets in the form of human capital. Utilizing such a framework, quantitative estimates of capital values of people as productive assets, as a function of their sex and age, can be made. The objectives of this paper are to point up the usefulness of the concept of human-capital value, and then to develop the methods, discuss some of the difficulties, and finally to present the results of actual calculations of capitalized values of (male) human assets for the year 1950. In addition, some implications of the results for decisions on resource allocation will be considered.

Impact of Export Subsidies on Pakistan’s Exports

Abstract: Throughout Pakistan’s history, policy has sought to promote exports through government support and incentives. The government machinery is geared to export promotion especially through direct and indirect subsidies. Surprisingly, these policies have been continued without serious examination. This paper makes a first attempt to evaluate these policies by estimating the impact of two such schemes—export financing and rebate/refund schemes—on export performance. Our analysis shows that, over the long run, the export financing scheme had a negative effect on exports while the rebate/refund scheme affected exports insignificantly. Subsidy schemes clearly do not seem to work, yet they have been retained for many years. JEL classification: C32; F13; F14; F31 Keywords: Rebate, Duty Drawback, Export Financing, Exports, Trade, Exchange Rate, Co-integration, Vector Error Correction, Pakistan.

Hospitalization Insurance and Hospital Utilization

Abstract: In Dallas, Texas, in 1929, Justin Ford Kimball, executive vice-president of Baylor University, originated a plan whereby Dallas school teachers paid $6 a year to the University Hospital and were extended hospital care without further charge [1, p. 5 ]. From this beginning grew Blue Cross plans, pioneers in the health insurance field. Commercial insurance companies became important sellers of health insurance after 1941. More recently, independent health plans such as those sponsored by trade unions and management have emerged. At least 1,150 different organizations provide voluntary health insurance today [2, p. 47].At the end of 1957, about 121 million persons owned some form of hospitalization insurance. Ten years earlier the number was only 53 million [2, p. 41]. The growth and extention of medical care insurance shows no sign of slowing. Pressure upon the U.S. Congress to expand coverage among older persons is mounting.What consequences may be expected from continuation of the trend toward more comprehensive medical care coverage? The answer is surely as complex as it is important; in the present paper we hope to shed some light on the matter and to suggest directions for further research. Specifically we report the results of a statistical study of the impact of extended hospitalization-insurance protection on the utilization of hospital services. Our objective has been to consider the questions of how and to what extent people are likely to react to an increase in the availability of prepaid hospital services. Implications of such findings for the social costs of expanded health care, whether under governmental or private auspices, should be clear.

A Nomograph for Valuing Growth Stocks

Abstract: This article presents a simplified approach to the analysis of growth stocks and a Nomograph which eliminates the need for complicated calculations.

Sir Robert Stout : a biography

Abstract: This biography discusses the life and career of Sir Robert Stout and his influence on New Zealand's political, social and legal history. Sir Robert Stout arrived in New Zealand from Scotland at the age of 19 in 1864 and died in 1930. This book traces his early political career to his tenure of the positions of Attorney General, Premier and Minister of Education. Sir Robert Stout retired from politics in 1898. During the latter part of his career he was Chancellor of the University of New Zealand and held the position of Chief Justice from 1899 until 1926.

The Retroactive Effect of an Overruling Constitutional Decision: Mapp v. Ohio

Abstract: The decision of the Supreme Court of the United States in Mapp v. Ohio, suddenly overruling Wolf v. Colorado, has created an interesting problem regarding the retroactive effect of an overruling decision. Wolf held that the Constitution does not impose upon the states the same obligation imposed upon the national government in Weeks v. United States to exclude evidence from criminal trials when it is the fruit of an unreasonable search and seizure. Mapp holds instead “that all evidence obtained by searches and seizures in violation of the Constitution is, by that same authority, inadmissible in a state court.” The ordinary assumption in the Court has been that a decision determining the meaning of the Constitution must be retroactive, even if it is an overruling decision. However, the Court has more recently declared that there are appropriate limits to treating unconstitutional federal law “as though it had never been passed.” With regard to the particular past circumstances in which a constitutional overruling decision will not be given full retroactive application though, the Court has given no general guidelines. The purpose of this article is to examine what seems relevant in determining the proper retroactive effect of Mapp. This article argues that the retroactive effect of Mapp ought to be quite limited because the purposes of the new law do not seem to be meaningfully served by applying it to the past.