FUNDAMENTALS OF MANAGERIAL ECONOMICS, 8th Edition

Selected References Overview

Selected references are provided for each chapter to give students the basis for a more detailed follow up on the materials covered in each chapter. The articles chosen are good examples of recent economic research that investigates the theoretical concepts introduced and explored in each chapter.

The American Economic Review publishes a Papers and Proceedings issue each May that is an especially fruitful source of recent articles on economic theory and methodology that are typically accessible to students enrolled in this course. This issue also tends to incorporate lots of interesting articles on economic policy issues. Similarly, the Harvard Business Review and the Strategic Management Journal are often good sources for articles on business policy. Interfaces features lots of interesting articles showing how firms actually employ various optimization techniques, including linear programming and dynamic optimization techniques.

Studies of consumer demand, demand estimation, and forecasting are commonly featured in The Review of Economics and Statistics, and in leading marketing journals like the Journal of Marketing, Journal of Marketing Research, and Journal of Consumer Research. The Review of Economics and Statistics is also a top source for applied research on cost theory and estimation. The Journal of Law and Economics, Journal of Industrial Economics, and Managerial & Decision Economics are more specialized journals that focus on business and public policy issues tied to market structure measurement. They are top sources for studies on industrial organization, game theory, business strategy, regulation, and antitrust policy. Studies on long-term investment decisions and financial analysis are featured in The Journal of Finance, Journal of Financial Economics, Financial Analysts Journal, and Financial Management.

Each of the selected referenced featured in the chapter-by-chapter lists provides students with an interesting example of how economists and business scholars test the usefulness and applicability of economic theory and methodology. Enjoy!

Mark Hirschey

Lawrence, Kansas

October 2005
Chapter 1: Introduction

Aier, Jagadison K, Joseph Comprix, Matthew T Gunlock, Deanna Lee. “The Financial Expertise of CFOs and Accounting Restatements.” Accounting Horizons, vol. 19, no. 3 (September 2005), 123.

Battisti, Giuliana, and Paul Stoneman. "The Intra-Firm Diffusion of New Process Technologies." International Journal of Industrial Organization, vol. 23, no. 1/2 (February 2005), 1.

Bayou, Mohamed E., and Alan Reinstein. "Analyzing the Product-Mix Decision by using a Fuzzy Hierarchical Model." Managerial Finance, vol. 31, no. 3 (2005), 35.

Caputo, Antonio C., and Pacifico M. Pelagagge. "Introduction of an Integrated Maintenance System in the Tissue Paper Sector: A Case Study." Production Planning & Control, vol. 16, no.3 (April 2005), 243.

Collins, Alan, and Chris Hand. "Analyzing Moviegoing Demand: An Individual-Level Cross-Sectional Approach." Managerial and Decision Economics, vol. 26, no. 5 (July/August 2005), 319.

Corman, Hope, and Naci Mocan. “Carrots, Sticks, and Broken Windows*.” Journal of Law and Economics, vol. 48, no. 1 (April 2005), 235.

Diermeier, Daniel, Michael Keane, and Antonio Merlo. “A Political Economy Model of Congressional Careers.” The American Economic Review, vol. 95, no. 1 (March 2005), 347.

Goldman, Eitan, and Jun Qian. "Optimal Toeholds in Takeover Contests." Journal of Financial Economics, vol. 77, no. 2 (August 2005), 321.

Jacob-Tacken, Karin H. M., et al. "Correcting for Compensating Mechanisms Related to Productivity Costs in Economic Evaluations of Health Care Programmes." Health Economics, vol. 14, no. 5 (May 2005), 435.

Jennings, Marianne M. “Ethics and Investment Management: True Reform.” Financial Analysts Journal, vol. 61, no. 3 (May/Jun 2005), 45.

Jensen, Michael C. “Agency Costs of Overvalued Equity.” Financial Management, vol. 34, no. 1 (Spring 2005), 5.

Lafontaine, Francine, and Kathryn L. Shaw. "Targeting Managerial Control: Evidence from Franchising." The Rand Journal of Economics, vol. 36, no. 1 (Spring 2005), 131-150.

Lazear, Edward P. “Balanced Skills and Entrepreneurship.” The American Economic Review, vol. 94, no. 2 (May 2004), 208.

Liu, Zhiyong. "Stackelberg Leadership with Demand Uncertainty." Managerial and Decision Economics, vol. 26, no. 5 (July/August 2005), 345.

Louis, Henock, and Dahlia Robinson. "Do Managers Credibly use Accruals to Signal Private Information? Evidence from the Pricing of Discretionary Accruals Around Stock Splits." Journal of Accounting & Economics, vol. 39, no. 2 (June 2005), 361.

Menezes, Carmen F., and X. Henry Wang. "Duality, Income and Substitution Effects for the Competitive Firm Under Price Uncertainty." Managerial and Decision Economics, vol. 26, no. 4 (June 2005), 249.

Mobarak, Ahmed Mushfiq. “Democracy, Volatility, and Economic Development.” The Review of Economics and Statistic, vol. 87, no. 2 (May 2005), 348.

Nwogugu, Michael. "Structural Changes in the US Retailing Industry and Legal, Economic and Strategy Implications for the US Real Estate Sector." Managerial Law, vol. 47, no. 1/2 (2005), 65.

O'Gorman, Colm, Sarah Bourke, and John A. Murray. "The Nature of Managerial Work in Small Growth-Orientated Businesses." Small Business Economics, vol. 25, no. 1 (August 2005), 1.

Ozbas, Oguzhan. "Integration, Organizational Processes, and Allocation of Resources." Journal of Financial Economics, vol. 75, no. 1 (January 2005), 201.

Sethi, Gautam, et al. "Fishery Management Under Multiple Uncertainty." Journal of Environmental Economics and Management, vol. 50, no. 2 (September 2005), 300.

Sheu, Her-Jiun, and Chi-Yih Yang. "Insider Ownership and Firm Performance in Taiwan's Electronics Industry: A Technical Efficiency Perspective." Managerial and Decision Economics, vol. 26, no. 5 (July/August 2005), 307.

Shleifer, Andrei. “Does Competition Destroy Ethical Behavior?” The American Economic Review, vol. 94, no. 2 (May 2004), 414.

Steen, Eric Van den. "Organizational Beliefs and Managerial Vision." Journal of Law Economics & Organization, vol. 21, no. 1 (April 2005), 256.

Watabe, Akihiro. "Delegation of Risky Activities." Managerial and Decision Economics, vol. 26, no. 5 (July/August 2005), 331.


Chapter 2: Basic Economic Relations

Allen, Franklin, Jun Qian, and Meijun Qian. "Law, Finance, and Economic Growth in China." Journal of Financial Economics, vol. 77, no. 1 (July 2005), 57.

Alstyne, Marshall W. Van. "Create Colleagues, Not Competitors." Harvard Business Review, vol. 83, no. 9 (September 2005), 24.

Bellandi, Marco, and Marco R. Di Tommaso. "The Case of Specialized Towns in Guangdong, China." European Planning Studies, vol. 13, no. 5 (July 2005), 707.

Bertazzi, Luca, and Maria Grazia Speranza. "Improved Rounding Procedures for the Discrete Version of the Capacitated EOQ Problem." European Journal of Operational Research, vol. 166, no. 1 (October 2005), 25.

Bludova, S. N. "On the Role of Regional Government in the Development of Trade Relations between Russian Regions and CIS Member Countries." Problems of Economic Transition, vol. 47, no. 12 (April 2005), 35.

Childs, Paul D., David C. Mauer, and Steven H. Ott. "Interactions of Corporate Financing and Investment Decisions: The Effects of Agency Conflicts." Journal of Financial Economics, vol. 76, no. 3 (June 2005), 667.

Doms, Mark, and Chris Forman. "Prices for Local Area Network Equipment." Information Economics and Policy, vol. 17, no. 3 (July 2005), 365.

Dzhantev, Kh M. "Transregional Cooperation between Russia and Georgia." Problems of Economic Transition, vol. 47, no. 12 (April 2005), 87.

Edelen, Roger M., and Gregory B. Kadlec. "Issuer Surplus and the Partial Adjustment of IPO Prices to Public Information." Journal of Financial Economics, vol. 77, no. 2 (August 2005), 347.

Gibbons, Robert. "Incentives Between Firms (and Within)." Management Science, vol. 51, no. 1 (January 2005), 2.

Gulati, Ranjay, Paul R. Lawrence, and Phanish Puranam. "Adaptation in Vertical Relationships: Beyond Incentive Conflict." Strategic Management Journal, vol. 26, no. 5 (May 2005), 415.

Hadiz, Vedi R., and Richard Robison. "Neo-Liberal Reforms and Illiberal Consolidations: The Indonesian Paradox." The Journal of Development Studies, vol. 41, no. 2 (February 2005), 220.

Irish, Charles R., and Robert W. Irish. "Misdirected Ire and Lost Opportunities: The False Crisis in Sino-American Relations." Journal of World Trade, vol. 39, no. 4 (August 2005), 719.

Kay, Neil M. "Penrose and the Growth of Multinational Firms." Managerial and Decision Economics, vol. 26, no. 2 (March 2005), 99.

Koeller, C. Timothy. "Technological Opportunity and the Relationship between Innovation Output and Market Structure." Managerial and Decision Economics, vol. 26, no. 3 (April/May 2005), 209.

Kor, Yasemin Y., and Joseph T. Mahoney. "How Dynamics, Management, and Governance of Resource Deployments Influence Firm-Level Performance." Strategic Management Journal, vol. 26, no. 5 (May 2005), 489.

Lee, Chang-Yang. "A New Perspective on Industry R&D and Market Structure." The Journal of Industrial Economics, vol. 53, no. 1 (March 2005), 101.

Luo, Yuanzhi. "Do Insiders Learn from Outsiders? Evidence from Mergers and Acquisitions." The Journal of Finance, vol. 60, no. 4 (August 2005), 1951.

Mayes, David G., and Matti Viren. "Monetary Policy Problems for Currency Unions: Asymmetry and the Problem of Aggregation in the Euro Area." Economic Modelling, vol. 22, no. 2 (March 2005), 219.

Neumann, Robert, and Torben Voetmann. "Top Executive Turnovers: Separating Decision and Control Rights." Managerial and Decision Economics, vol. 26, no. 1 (January/February 2005), 25.

Peck, Jamie. "Economic Sociologies in Space." Economic Geography, vol. 81, no. 2 (April 2005), 129.

Piotroski, Joseph D., and Darren T. Roulstone. "Do Insider Trades Reflect both Contrarian Beliefs and Superior Knowledge about Future Cash Flow Realizations?" Journal of Accounting & Economics, vol. 39, no. 1 (February 2005), 55.

Sen, Rahul. "Asean and India: New Phase of an Emerging Economic Relationship." Regional Outlook (2004), 55.

Shimov, Vladimir N. "The Effect of European Union Expansion on the Economy of Belarus: Competitiveness and Globalization Constraints." Problems of Economic Transition, vol. 48, no. 1 (May 2005), 10.

Tan, Justin, and David Tan. "Environment-Strategy Co-Evolution and Co-Alignment: A Staged Model of Chinese SOEs Under Transition." Strategic Management Journal, vol. 26, no. 2 (February 2005), 141.


Chapter 3: Statistical Analysis of Economic Relations

Antia, Murad J. "Investment Manager Analysis: A Comprehensive Guide to Portfolio Selection, Monitoring, and Optimization." Financial Analysts Journal, vol. 61, no. 2 (March/April 2005), 100.

Ashenfelter, Orley, and Michael Greenstone. “Estimating the Value of a Statistical Life: The Importance of Omitted Variables and Publication Bias.” The American Economic Review, vol. 94, no. 2 (May 2004), 454.

Beck, Thorsten, Asli Demirguc-Kunt, and Vojislav Maksimovic. "Financial and Legal Constraints to Growth: Does Firm Size Matter?" The Journal of Finance, vol. 60, no. 1 (February 2005), 137.

Beckert, Walter. “Estimation of Heterogeneous Preferences with an Application to Demand for Internet Services.” The Review of Economics and Statistics, vol. 87, no. 3 (August 2005), 495.

Blanco, Roberto, Simon Brennan, and Ian W. Marsh. "An Empirical Analysis of the Dynamic Relation between Investment-Grade Bonds and Credit Default Swaps." The Journal of Finance, vol. 60, no. 5 (October 2005), 2255.

Cole, Stephen, and Elizabeth Arias. “Can Demand-Side Variables Explain the Low Numbers of Minority Faculty in Higher Education?” The American Economic Review, vol. 94, no. 2 (May 2004), 291.

Collins, Alan, and Chris Hand. "Analyzing Moviegoing Demand: An Individual-Level Cross-Sectional Approach." Managerial and Decision Economics, vol. 26, no. 5 (July/August 2005), 319.

Corcoran, Sean P., William N. Evans, and Robert M. Schwab. “Changing Labor-Market Opportunities for Women and the Quality of Teachers, 1957-2000.” The American Economic Review, vol. 94, no. 2 (May 2004), 230.

Corsten, Daniel, and Nirmalya Kumar. "Do Suppliers Benefit from Collaborative Relationships with Large Retailers? An Empirical Investigation of Efficient Consumer Response Adoption." Journal of Marketing, vol. 69, no. 3 (July 2005), 80.

Fehle, Frank, and Sergey Tsyplakov. "Dynamic Risk Management: Theory and Evidence." Journal of Financial Economics, vol. 78, no. 1 (October 2005), 3.

Fleming, John H., Curt Coffman, and James K. Harter. "Manage Your Human Sigma." Harvard Business Review, vol. 83, no. 7 (July/August 2005), 106.

Ghysels, Eric, Pedro Santa-Clara, and Rossen Valkanov. "There is a Risk-Return Trade-Off After All." Journal of Financial Economics, vol. 76, no. 3 (June 2005), 509.

Gu, Zhaoyang. "Scale Factor, R2, and the Choice of Levels Versus Returns Models." Journal of Accounting, Auditing & Finance, vol. 20, no. 1 (Winter 2005), 71.

Helland, Eric, Jonathan Klick, and Alexander Tabarrok. “Data Watch: Tort-uring the Data.” The Journal of Economic Perspectives, vol. 19, no. 2 (Spring 2005), 207.

Hoxby, Caroline M., and Andrew Leigh. “Pulled Away or Pushed Out? Explaining the Decline of Teacher Aptitude in the United States.” The American Economic Review, vol. 94, no. 2 (May 2004), 236.

Johansen, Soren, and Helmut Lutkepohl. "A Note on Testing Restrictions for the Cointegration Parameters of a Var with I(2) Variables." Econometric Theory, vol. 21, no. 3 (June 2005), 653.

Kothari, S. P., Jowell S. Sabino, and Tzachi Zach. "Implications of Survival and Data Trimming for Tests of Market Efficiency." Journal of Accounting & Economics, vol. 39, no. 1 (February 2005), 129.

Lawrence, Thomas B., Eric A. Morse, and Sally W. Fowler. "Managing Your Portfolio of Connections." MIT Sloan Management Review, vol. 46, no. 2 (Winter 2005), 59.

Mobarak, Ahmed Mushfiq. "Democracy, Volatility, and Economic Development." The Review of Economics and Statistics, vol. 87, no. 2 (May 2005), 348.

Moxnes, Erling. "Policy Sensitivity Analysis: Simple Versus Complex Fishery Models." System Dynamics Review, vol. 21, no. 2 (Summer 2005), 123.

Steenge, Albert E., and Mark J. P. M. Thissen. "A New Matrix Theorem: Interpretation in Terms of Internal Trade Structure and Implications for Dynamic Systems." Journal of Economics, vol. 84, no. 1 (February 2005), 71.

Vertinskaia, T. S. "The Spatial Concept of International Economic Relations as a Theoretical Basis for the Development of Interregional Cooperation within the Framework of Integration Processes in the CIS." Problems of Economic Transition, vol. 47, no. 12 (April 2005), 45.

Wolff, Reiner. "A Global Robustness Measure for Input-Output Projections from ESA and SNA Tables." Economic Systems Research, vol. 17, no. 1 (March 2005), 77.

Wynne, José. "Wealth as a Determinant of Comparative Advantage." The American Economic Review, vol. 95, no. 1 (March 2005), 226.

Yamarik, Steven, and Sucharita Ghosh. "A Sensitivity Analysis of the Gravity Model." The International Trade Journal, vol. 19, no. 1 (Spring 2005), 83.


Chapter 4: Demand and Supply

Aizenman, Joshua. “Financial Opening and Development: Evidence and Policy Controversies.” The American Economic Review, vol. 94, no. 2 (May 2004), 65.

Atkeson, Andrew, and Patrick J. Kehoe. “Deflation and Depression: Is There an Empirical Link?” The American Economic Review, vol. 94, no. 2 (May 2004), 99.

Andersen, Poul Houman, and Poul Rind Christensen. "Bridges Over Troubled Water: Suppliers as Connective Nodes in Global Supply Networks." Journal of Business Research, vol. 58, no. 9 (September 2005), 1261.