RESEARCH NOTES

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high-risk financial behavior of the consumer throughout least down payments and longest possible financing, the other rewarding long-term savings, large down payments, and shorter term financing--might lead to policy reassessments as far as single-family dwelling acquisition and ownership are concerned. Money, to Value, to Price, to Exchange, and More Money EDWARD S. PHILLIPS

Shepherd College--U.S.A.

The norm for a market is represented as pure of perfect competition. The norm of capitalism or the macro economy can also be determined as pure capitalism. Greek philosophical thought teaches that the second law of value (or macroeconomic law) begins with the exogenous factor of money and ends with more money. From this prompt, it is possible to construct a macroeconomic model that has, as its exogenous function, savings as money capital, represented as the monetary base. These savings are advanced into the production of capitals. This generates the natural rate of employment as capital values and a wage rate. The wage rate determines investment demand and, along with the savings function that first advances monies into capital production, sets the price level of the system. The natural rate of employment in relation to total productivity sets the market value of all final goods and services as aggregate supply. Aggregate demand is determined from the point at which savings are equal to investment demand. By extending this price level to the point of aggregate supply, aggregate demand is determined. The supplies of and demands for money then allow systemic real values to be measured.

Voluntary Interim Disclosures, Unexpected Earnings, and Spreads: International Evidence HANNU J. SCHADEWITZ AND DALLAS R. BLEVINS

Helsinki School of Economics and Business Administration--Finland and The University of Montevallo--U.S.A.

This research hypothesizes that bid-ask spreads reflect information asymmetry. Therefore, spreads should be narrow when interim disclosures correspond with expectation, should increase when interim disclosures are lower than expected, and should have no normative relationship to interim disclosures when they are greater than expected. All stocks traded on the Helsinki Stock Exchange from 1985-93 are investigated, with the exception of the insurance and financial institutions sectors. Spreads are found to be unrelated to unexpected earnings when disclosure is about as expected and are narrow when interim disclosures are either lower than or greater than expected. Both tightly held and highly leveraged firms have some interest groups that can access legally privileged information that is not generally available to others. These would narrow the spreads for the lower than or greater than expected. An interim report is an excellent vehicle for the explanation of a firm's activity. It may be that such explanations are viewed uniformly by the markets, even though these evaluations lead to declines in perceived share value for the reporting organizations. Such a uniform view of market value would reduce spreads. A Model of a Professional Sports League DANIEL A. RASCHER

University of California at Berkeley-- U.S.A.

This paper considers a multi-team analysis of a professional sports league cartel. It examines the individual owner's choice of talent, the leagues' choice of revenue-sharing arrangement, and a salary cap policy in both a profit-maximizing model and a utility-maximizing model. The effect of decisionmaking outcomes on labor market issues such as talent distribution and wages is explored. Cartel innovation and stability are discussed, especially the likelihood of adoption of institutional policies.