Some capital market failures in the socialist labor-managed economies
Article Abstract:
The feasibility of decentralizing a socialist labor-managed economy was examined. This task required the characterization of the functioning of labor-managed firms in the capital market. It was found that capital markets tend to reinforce disequilibrium in an economy and this would require the entry of new firms for its stabilization. However, a socialist labor economy is not capable of this strategy because of the absence of collateral due to credit-rationing. With this realization, the decentralization of a socialist labor-managed economy was assessed as an impossibility.
Publication Name: Journal of Comparative Economics
Subject: Economics
ISSN: 0147-5967
Year: 1992
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Corporate growth and profitability
Article Abstract:
The long run profitability of a firm can be gleaned from current period corporate growth rates which are reflective of changes in current expectations about a firm's financial health. Random variations in growth rates are expected over time. The existence of a positive and statistically significant correlation between changes in current expectations and current period growth rates was gathered from data culled from 271 UK firms. The changes noted mainly took place in stock market valuation of a firm.
Publication Name: Journal of Industrial Economics
Subject: Economics
ISSN: 0022-1821
Year: 1997
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Increasing efficiency by giving up some profit
Article Abstract:
Multiple inefficient equilibria can help explain why giving up part of potential profit may benefit individuals, and how free-riding behavior can be prevented.
Publication Name: Journal of Institutional & Theoretical Economics
Subject: Economics
ISSN: 0932-4569
Year: 2000
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