Interpreting accruals as working capital investment, we hypothesize that firms rationally adjust their investment to respond to discount rate changes. Consistent with the optimal investment hypothesis, we document that (i) the predictive power of accruals for future stock returns increases with...

An exclusive focus on bottom-line income misses important information about the quality of earnings. Accruals (the difference between accounting earnings and cash flow) are reliably, negatively associated with future stock returns. Earnings increases that are accompanied by high accruals,...

This study investigates the relationship between strike activity by nonunion public employees and unionization. Examining the strike activity and unionization rates of some 600 nonunion municipal police departments from 1972 to 1978, this study finds that recognition strikes are concentrated...

We examine the changing relationship between unionization and wage inequality in Canada and the United States. Our study is motivated by profound recent changes in the composition of the unionized workforce. Historically, union jobs were concentrated among low-skilled men in private sector...

The quality of governance depends on public sector worker productivity. We use micro data from China to document that judges are less productive on polluted days. Building on the insights of Alchian and Kessel (1962), we discuss the role of organization design and the incentives of public versus...

This paper contrasts the differing experience of public sector unionism, which has expanded in the United States, and private sector unionism, which has contracted, in the past several decades. It uses the experience of other countries, particularly Canada, to rule out some explanations of the...

This paper summarizes the many aspects of public policy for health care. I first consider government policy affecting individual behaviors. Government intervention to change individual actions such as smoking and drinking is frequently justified on externality grounds. External costs of smoking...

A stylized fact in the growing literature on public sector labor markets is that estimates of public sector union wage premia are significantly lower than estimates of private sector union wage premia. In this paper I investigate the hypothesis that this difference may in part be due to the...

This paper presents an analytical framework that can be used to analyze the effects of unions on productivity in the public sector. Our initial focus is on public libraries because considerable effort has been devoted to conceptualizing library productivity measures and because of the...

This study uses a Cox proportional hazards model to estimate ther elationship between state-level collective bargaining policies and union growth in the public sector. The proportional hazards analysisis performed with data on approximately eight hundred municipal police departments. The timing...