Showing papers in "Social Science Research Network in 1968"

Entrepreneurship in Economic Theory

Abstract: Examines the historic inability of economic theory to develop a formal analysis of entrepreneurship. The entrepreneur is the major catalyst to the process of economic growth, a central force in both micro and macro economics. Despite this reality, in formal theory, the entrepreneur's role has historically been conspicuously absent. The economic models call for no entrepreneurial initiative, so that theoretically, business people remain passive "automaton maximizers." In fact, contributors from the disciplines of psychology and sociology have made more significant advances - by analyzing social and cultural conditions for entrepreneurship - than have economic theorists. Though it is decided that the supply of entrepreneurship, the entrepreneur's strategies, attitudes to risk, and idea sources cannot be analyzed in a systematic manner, the encouragement of these entrepreneurial behaviors and activities can be theoretically advanced. Theory, then, should consider not how the entrepreneur bears risk or employs R&D, but how the marginal cost of risk-bearing can be reduced, and what economic conditions make R&D easiest and most effective. These theoretical questions clearly bear upon policymaking, since, it is argued, the key to stimulating economic growth is the establishment of policies encouraging entrepreneurship. (CJC)

Optimal Timing of Innovations

Abstract: The article shows that innovations are induced, since they become more profitable with the expansion of output. The amount of resources devoted to innovating activity, however, is in general not the optimal one because of the pressure of two opposing forces. On the one hand, competition between potential innovators tends to make this amount too large, on the other, the inability of innovators to capture all the benefits tends to make the amount too small. When all benefits are captured by the innovator either there is no economic growth due to innovations or else innovators are the sole beneficiaries from that growth. When benefits are diffused the innovation will always lead to economic growth, but only by sheer coincidence will it lead to maximum growth, which may be missed because the innovation is introduced either too early or too late. The rate of growth is always positive if the innovation is introduced too late. It may fall to zero with too-early introduction or even become negative if innovational activity is subsidized.

An Income-Net Worth Approach to Measuring Economic Welfare

Abstract: Economists and public policy-makers alike have long been concerned with the relative and absolute economic welfare of various segments of the population. This interest reflects an underlying concern both about the equity of the existing distribution and about our ability to explainand forecast more effectively the behavior of producers and consumers.' But given the many possible dimensions of a comprehensive measure of economic welfare, the single-dimensional, money-income measure so commonly used leaves much to be desired. The concern of this paper is with the development of an approach for measuring current economic welfare which is operationally feasible and broader in scope than the traditional money-income measure. The measure proposed is based on a combination of current income and current net worth (assets minus liabilities). These are made commensurable by converting net worth into an annuity value, which is added to current income. While this proposed measure stops well short of an "ideal"measure, we show that even this change leads to policy prescriptions rather different from those generated by the current income measure of economic welfare.

Monetary Returns to College Education, Student Ability, and College Quality

Abstract: This paper attempts to shed new light on the extent to which college education brings financial returns. It recognizes the existence of a number of variables that are likely to affect the financial returns that education produces for a given person -particularly the student's "ability" and "motivation," and the "quality" of his schooling. It attempts to isolate returns to education from returns to these other related variables.

Basic Human Needs, Alienation, and Inauthenticity

Abstract: This article presents a case for the usefulness of the concept of basic human needs. The author suggests that it is fruitful to assume that there is a universal set of basic human needs which have attributes of their own, not determined by the social structure, cultural patterns, or socialization processes. Ways are shown in which propositions which use the concept could be tested empirically. Restoration of the concept of basic human needs into sociological theory corrects the “over-socialized” conception of man, identifies a central distinction between the industrial and the emergent post-industrial society, and bridges two divergent traditions in sociology: structural-functional analysis and alienation.

The Demise of the Right-Privilege Distinction in Constitutional Law

Abstract: The right-privilege distinction, as it appeared in an early statement by Justice Holmes, has long hampered individuals within the public sector in protecting themselves against arbitrary governmental action. In this article Professor Van Alstyne reviews the uses and misuses to which the "privilege" concept has been put and then examines those doctrines whose flanking attacks have gradually eroded its efficacy. But none of these doctrines comes to grips with Holmes' basic idea of a "privilege" to which substantive due process is inapplicable. Applying Holmes' own jurisprudence, the author argues that the concept of "privilege" is today no longer viable, and that the size and power of the governmental role in the public sector requires substantive due process control of the state in all its capacities.

Through a Test Tube Darkly: Artificial Insemination and the Law

Abstract: Although written forty-four years ago, this article provides a foundational analysis of the then-nascent beginnings of the legalization of artificial insemination from the judicial posture taken by the state of California to the legislative stance of Oklahoma Analyzing the consequences of artificial insemination by a donor (AID) and by a woman’s husband (AIH), the consequences of these procedures on family law — and especially illegitimacy — inheritance, and adultery, are studied and evaluated In order to provide some degree of stability and predictability to this obviously contentious area within Law, Science, and Medicine, this article urges measured experimentation in genetics — with a goal as such to improve the overall quality of health in the population and, thus, minimize suffering and promote the public welfare by lowering the lifetime costs of health maintenance

Long-Range Forecasting For International Markets: The Use of Causal Models

Abstract: Many researchers appear to operate under the impression that causal models lead to more accurate forecasts than those provided by naive models (or “projections”). This study was based on the premise that causal models lead to better forecasts than do naive models in certain situations. The key element of these situations is that there are “large changes.” One situation where large changes might be expected is that of long-range forecasting — and, in particular, long-range forecasting for international markets. Recent improvements in the quality and availability of international data have substantially reduced the cost of developing causal models in this situation. A study of camera markets in seventeen countries indicated that the margin of superiority of causal models over naive models is of great practical importance.

The Judicial Trend Toward Student Academic Freedom

Abstract: This analysis references the growing likelihood that even “private” colleges and universities may be viewed as state actors due to these institutions growing reliance on public funds and their performance of what is often considered a public function. Given such, this examination discusses the growing sphere of student rights.

A Bill of Rights for New Zealand

Abstract: The two Bills of Rights which have been suggested for New Zealand so far were in their different ways misconceived and we are better off without them. It would be possible, however, to have a Bill of Rights for New Zealand of the declaratory type, the provisions of which would not be enforceable. Such a Bill might be of benefit if a body such as a Human Rights Commission could report publicly on human rights implications of the government’s policies. To set up a Bill of Rights with real teeth involves a political judgment that Parliament and the political process cannot be trusted all the time to protect fundamental rights and liberties. The only way to enforce such a Bill of Rights would be through granting the courts the power to strike down legislation which is inconsistent with provisions in the Bill of Rights. This would involve a fundamental change in the distribution of political power in our society. This chapter traces the history of suggestions for Bills of Rights in New Zealand, discusses the matters above and evaluates the American experience with their Bill of Rights. It considers the complex institution of judicial review of governmental action, the ambit of any application of a Bill of Rights, and the policy content and political consequences of Bill of Rights interpretation.It concludes that New Zealand conditions are not right for an enforceable Bill of Rights because of the lack of inclination or ability on the part of New Zealand judges to take up a political role, the threat to the stability and respect of the New Zealand judicial system, the lack of clarity regarding any need for such a Bill, and the contrary nature of such a Bill to New Zealand’s pragmatic political traditions. Additionally, Bills of Rights with judicial review available will not protect society from overwhelming social forces likely to restrict liberty.

Long-Range Forecasting for a Consumer Durable in an International Market

Abstract: There has been a substantial amount of interest recently in long-range planning. One necessary component of the long-range plan Is the long-range forecast. In contrast to the emphasis on the planning process, however, little attention has been given to forecasting. This study considers the problem of long-range forecasting in a situation which is of growing importance - forecasting sales for international markets.Many researchers appear to operate under the impression that causal models (i.e., models based on an analysis of underlying factors) lead to more accurate sales forecasts than those provided by naive models (i.e., projections based on historical sales data only). A survey of the research literature led to the conclusion that this confidence in causal models is virtually unsupported. One can hardly criticize firms, then, for relying primarily upon naive models for sales forecasting since these models are simpler and less expensive than causal model.This study was based on the hypothesis that causal models are superior to naive models in certain situations. The key element of these situations is that -there are 'large changes.' Long-range sales forecasting usually involves such large changes; and there are many reasons to expect that long-range forecasting for international markets is a situation in which substantial changes will occur (e.g., the Kennedy round tariff cuts and the formation of common markets.)A causal model was developed to provide long-range forecasts of the international market for still cameras. This model provided unconditional forecasts of unit camera sales by country for year t n on the basis of l) knowledge about camera sales in year t and 2) predicted changes in four causal variables from year t to t n. These four causal variables included, in order of importance, per capita income, price of cameras, number of potential buyers and quality of cameras.The predictive ability of the causal model was superior to that of a naive model purporting to represent current practice. Each model was used to provide backcasts of 1954 camera sales in 17 countries on the basis of data from 1967 to 1960 only. The mean absolute percentage error for the causal model was 23% while that for the naive model was 43%. This result was statistically significant (0? = .05); but, more importantly, it appeared to have great practical significance. An evaluation, based on very conservative subjective estimates, indicated that such an improvement in accuracy would have a present value worth in excess of one percent of a typical firm's yearly sales volume.Further support for the use of the causal model was obtained by noting that the standard errors of the estimated relationships were low (evidence of reliability), that the estimates of causal relationships from different measurement models were in rather close agreement (evidence of construct validity), and that the causal model performed well in another situation where predictions were provided for I960-65 camera sales in 11 'new' countries (evidence of concurrent validity).The causal relationships were initially specified by a subjective analysis. Various parts of the causal model were then updated by use of a number of measurement models including an analysis of differences among sales rates for 30 countries, of differences among changes in the sales rates from 1961 to 1965 for 21 countries, and of differences among six income categories from United States household survey data. This updating led to a modest, though valuable, gain as the mean absolute percentage error of the 1954 backcast was reduced from 30% to the 23% mentioned above.Additional benefits associated with the development of the causal model included the ability to evaluate large changes in the market; to estimate current sales where trade and production figures are inadequate; to evaluate alternative assumptions about the future rapidly and cheaply; and to identify markets which have not been fully exploited.In summary, the study argues that the development of better long-range forecasting models is an important problem; describes the development of causal models; and demonstrates the superiority of causal models over naive models in a case involving long-range forecasting for international markets.

Taxation of Trusts

Abstract: With acknowledgment of the growing popularity of the trust as an effective taxation planning vehicle, this article explores various principles of taxing trusts under the Land and Income Tax Act 1956 The author first analyses the requirements of sections 155(a) and 155(b) of the Act and the facilitation of income splitting, before turning to consider the shortcomings of section 84A as a plug to the gap of created by the child exemption in personal taxation The article next considers the application of section 105 to short-term or revocable trusts Lastly, the article considers general points of settlement of personal income by trust, and the use of trusts for this purpose in light of the general anti-avoidance provision contained in section 108 Abstract by Holly Hill

A Metropolitan Court Conquers its Backlog - Part I: Statistics, Procedures and Policies

Abstract: First in a series of three articles discussing the features of the Allegheny County (Pittsburgh, PA) court system's successful calendar control measures and elimination of backlogged cases. PDF scan posted with permission of Judicature.

The Application of Presumptions to the Derivative Forms of an Offence

Abstract: Both the facts of The State of Israel v. Siman Tov, and the solution adopted in that case by the Supreme Court, raise, it is felt, a number of legal problems which warrant particular attention.

Costs of Medical Treatment: Comment

Abstract: The Consumer Price Index (CPI) provides an approximation to the money income adjustment necessary to maintain an individual at a constant level of utility. Anne Scitovsky, in comparing the costs of treating certain medical problems in 1964-65 with those in 1951-52, arrives at results conceptually superior to those currently employed for the CPI, since the latter are based on prices of medical inputs such as hospital care and physicians' rates while Scitovsky concentrates on the price of medical output. She argues that, for purposes of the cost of living index, quality changes in treatment should be ignored on the ground that while "the fact that the present treatment is better will increase his welfare, it still leaves him with the problem of how to pay for it." In summary, it is the contention of this comment that in constructing the price index of medical services, an approach more comprehensive than Scitovsky's has to be adopted. The cost of an illness will fall drastically if the illness is not allowed to develop and this genuine fall in medical cost should be included in constructing the index.

Law, Language, and Philosophy

Abstract: Unlike most disciplines such as medicine or engineering, law has engendered a vast jurisprudential literature as to exactly what it is and how it functions. Law is expressed through language, therefore the many philosophical issues about the nature of language and how words get their meaning are central to legal theory. The language of law is normative and in consequence the nature of normative reasoning is critical to legal issues. Every major philosophical school has implications for law. This article constitutes a survey of the various schools of jurisprudence such as natural law, legal positivism, and legal realism, etc. and relates them to the theories of language and the normative theories of the major philosophical schools from which the legal theories have emerged. Philosophy has radically altered in recent years, particularly as it relates to the nature of language. Jurisprudence should reflect the current state of philosophical understanding and argument rather then continue to perpetuate the old debates such as between positivism and natural law.

A Metropolitan Court Conquers its Backlog - Part II: From Pure Pre-Trial to Compulsory Settlement Conferences

Abstract: Second in a series of three articles discussing the features of the Allegheny County (Pittsburgh, PA) court system's successful calendar control measures and elimination of backlogged cases. PDF scan posted with permission of Judicature.

Religious Freedom and the Church-State Relationship in Maryland

Abstract: Maryland holds the unique and admirable distinction of having been the State whose early history most directly ensured, and whose citizenry was most directly affected by, the first amendment's grant of religious liberty. The Supreme Court's docket is still liberally sprinkled with petitions calling for renewed interpretation of the establishment clause, and Marylanders will soon vote upon a proposed new state constitution with a similar provision - hence, the opportuneness for tracing Maryland's contribution to the cause of toleration and to the principle of church-state separation. The scope of this article will not extend beyond a sketch of the important events concerning the theme of toleration and its development in Maryland; from a background setting of religious persecution in the early 1600's to the recent cases involving church and state. The solution to the underlying question of interpretation - whether the establishment clause requires complete separation of church and state, or whether it permits nondiscriminatory government participation - will not be attempted, although a conclusion will be offered.