This paper addresses the fairness of microcredit interest rates. Since microfinance institutions provide credit for the poor at relatively high prices, the fairness of their interest rates has been repeatedly debated. We first apply Rawls' principles of justice to the case of microcredit interest rates and suggest some limitations related to the hypothesis of rationality of the borrowers and the level of inequality. We then suggest another framework based on the analysis of the distribution of the benefits (...) generated by the transaction to assess the fairness of interest rates. We conceptualize this as the distribution of the bargaining range between the borrowers' and the institutions' reservation price and discuss what these reservation prices could be in the context of microfinance. (shrink)

This paper addresses the fairness of microcredit interest rates. Since microfinance institutions provide credit for the poor at relatively high prices, the fairness of their interest rates has been repeatedly debated. We first apply Rawls' principles of justice to the case of microcredit interest rates and suggest some limitations related to the hypothesis of rationality of the borrowers and the level of inequality. We then suggest another framework based on the analysis of the distribution of the benefits (...) generated by the transaction to assess the fairness of interest rates. We conceptualize this as the distribution of the bargaining range between the borrowers' and the institutions' reservation price and discuss what these reservation prices could be in the context of microfinance. (shrink)

Uncertainty plays an important role in The General Theory, particularly in the theory of interest rates. Keynes did not provide a theory of uncertainty, but he did make some enlightening remarks about the direction he thought such a theory should take. I argue that some modern innovations in the theory of probability allow us to build a theory which captures these Keynesian insights. If this is the right theory, however, uncertainty cannot carry its weight in Keynes’s arguments. This does (...) not mean that the conclusions of these arguments are necessarily mistaken; in their best formulation they may succeed with merely an appeal to risk. (shrink)

In 1937 Joan Robinson proposed that “when capitalism is rightly understood, the rate of interest will be set at zero and the major evils of capitalism will disappear”. A permanent zero rate would abolish capitalist profit except in limited cases, leaving nearly all output to be claimed by labour as wages. It would allow capital to be allocated on the basis of prospective social benefit rather than short-term profitability and a collateral basis that favours the wealthy. It (...) would remove some of the economic pressure to use resources unsustainably. So why not do this? I argue that the few available philosophical arguments for positive interest rates are unsatisfactory. Those who want a just and sustainable form of capitalism should target net zero for the interest rate. (shrink)

The marketization of interest rate is an inevitable requirement for China’s financial reform and joining the WTO to connect with the international financial market. It is also an important link to improve the marketization degree of China’s financial system. The marketization of interest rate in China is gradually advancing according to its preset mode. In the process of interest rate marketization, an unavoidable problem is that while the interest rate marketization gives the (...) commercial banks the autonomy of capital pricing, the fluctuation of interest rate is more and more frequent. However, due to the fluctuation of interest rate, the loan as the main assets of commercial banks will be prepayed by borrowers, and the time deposit as the main liabilities of commercial banks will be withdrawn by depositors in advance; that is, embedded options are implied in asset liability items, which makes it difficult for commercial banks to accurately calculate the actual interest margin of deposits and loans and manage the interest rate risk. Therefore, it is of great significance to identify and price such embedded option value. On the basis of identifying and decomposing the embedded options in deposit and loan of commercial banks, according to the change characteristics of deposit and loan interest rate of Chinese commercial banks, this paper chooses jump-diffusion interest rate model to describe the change of benchmark interest rate of deposit and loan in China and demonstrates the advantages of this model compared with other models. Based on Monte Carlo simulation technology, the embedded options of five-year fixed deposit and ten-year prepayable loan in China are priced. On this basis, it points out that the real interest margin of commercial bank’s deposit and loan should be the nominal interest margin minus the value of deposit and loan’s embedded options. In the process of interest rate risk management, we should pay attention to the existence of embedded options and carry out effective management. (shrink)

Publication date: 29 September 2016 Source: Author: Ahamed Lebbe Mohamed Aslam Interest rate is one of the primary tools in the monetary policy which moves the countries’ economy into positive or negative path. In the meantime, the fiscal imbalance keeps a bond on the interest rate of countries. Empirically, this study tested the impact of fiscal imbalance on the interest rate in Sri Lanka using the annual time series data from the period of 1959 (...) to 2014. In this study, the fiscal imbalance was considered as the independent variable and the interest rate was used as the independent variable. While the money supply and the inflation rates were utilized as controlled variables. To test this impact, the multiple regressions model was employed. Based on the regression outcome, the fiscal imbalance positively maintained the relationship on the interest rate at one percent level. (shrink)

The research purpose is to find out if signs of a real estate bubble are shown at the austrian real estate market right now. Lending rates are composed of different factors: the base rate is the price that the customer is willing to pay. The risk premium is given to compensate the lenders risk of full or partial failure of repayment. The inflation adjustment takes into account the impairment of money over the term of a loan. The liquidity premium (...) increases with extension of the term of the loan. The European Central Bank influences the interest rate policy by varying the interest for money saved there by the banks. At the moment there are used negative interest rates, i.e. penalty interest. The methodology used was that recently the ECB lowered the interest rates which might cause real estate bubbles and, subsequently, banks and economic crises may follow, if interest rates were to be increased again sooner or later. Therefor the author studied the amount of sales and the connection to the interest rates and the interest rate policy of the banks right now. Summarizing it can be seen that in Kittsee, an Austrian area with a lot of real estate sales, as an example, 565 real estate properties were sold in the years 2005 to 2015, the median prices increased in relation to the buyers residence in Austria or non- Austrians at about 375% to 490%, this might indicate signs of change on the market. (shrink)

Although the mathematics of interest is very precise, the practice of charging computing and disclosing interest or cost of credit is full of variations and therefore often questionable on ethical grounds. The purpose of this paper is to examine some of the prevalent practices which are incorrect, illogical, unfair or deceptive. Both utilitarian and formalist schools of ethical theory would find these practices to be inappropriate. The paper will specifically look at unfair practices in the areas of estimation (...) of intrayear rates, use of 360 days in a year, the "rule of 78th", interest rate ('APR') advertising, and computation of unpaid balance by credit card issuers to figure interest costs.The current practices are not in the best interest of the average consumer. There is, therefore, an urgent need for new legislation, change in regulatory code and disclosure requirement for eliminating these unethical practices. The author recommends that the Truth in Lending Code of the Federal Reserve should require the disclosure of the effective APR if the periodic rate is determined by dividing the 'APR' by the number of payment period in a year; the use of 360 days in a year methods and the "Rule of 78ths" should be immediately discontinued; Deceptive advertising, which tend to understate the true cost of credit or hides hidden costs and fees should be outlawed; interest should be payable with the same frequency as the frequency of compounding and credit card holders should be provided with a comparative example of various methods of balance computation. (shrink)

Introduction. The paper considers a wide range of monetary policy rules: integral stabilization, NGDP targeting, price level targeting, raising the inflation target, introducing negative nominal interest rates etc. The author also considers discretionary policy used by central banks when the nominal rate is close to zero, such as dramatic preventive cut of the key interest rate and interventions in the open markets with the aim of cutting long-term interest rates. The relevance of this problem is (...) supported by global long-term macroeconomic and demographic factors, such as the dynamics of oil prices and the aging of the population. The aim of the paper is to identify the most effective monetary policy rules in order to reduce the risk of a nominal interest rate falling to zero. Methods. Analysis of the background and the results of general equilibrium models modeling monetary policy is carried out. Analysis of the role of current global trends (based on statistics) in aggravating the problem of declining interest rates. Scientific novelty of the research. The author systematizes the conclusions of modern macroeconomic theory, which offers a number of monetary rules making it possible to reduce the likelihood of falling into the zero bound of interest rate. Results. The effectiveness of monetary rules such as targeting nominal GDP and price levels in preventing the nominal interest rate from falling to zero is shown, primarily due to more efficient public expectations management which is a weak point of discretionary intervention. Conclusions. Under the current global factors for many developed countries and some oil-exporters, the downward trend in nominal rates persists. Combined with slowdown in economic growth, such threat may have negative consequences for the Russian economy. In this case, it seems reasonable to stick to the inflation target above 2% per year and in the future to consider switching to targeting the price level or nominal GDP. (shrink)

We attempt in this paper to tie together several basic insights of praxeology, and several that are not at all that basic. These include the following: that gains from exchange are subjective; that this applies to profits and interest; that credit transactions can occur under barter; that interest arises from time preference even under a pure time preference theory of interest; and that productivity can, under disequilibrium conditions, affect the various rates of interest.

ABSTRACTThe major credit rating agencies contributed substantially to the sub‐prime mortgage crisis by giving their highest rating to most of the collateralized debt obligations securities that were backed by these sub‐prime mortgages. Because the rating agencies are compensated by the issuers whose CDO bonds they rate, this relationship creates a prima facie conflict of interest, one that is compounded when the rating agency also consults for the issuers on designing the CDOs. While Congress and the Securities Exchange Commission (...) investigate possible wrongdoing, various reforms have been proposed. This article analyzes these conflicts of interest and the cognate corporate governance issues. It then categorizes and critiques several of the reform proposals—which range in severity from requiring more disclosure to the suspension of the rating agency's license. (shrink)

Many private business relationships are increasingly characterized by claims that certain actions should not be permitted since particular right claims are involved. Such claims should be taken seriously, but are they always ethically legitimate? This paper analyzes one context, the use of age as a rating variable in the pricing of automobile insurance, where such claims are made. By identifying, evaluating and assessing the relevant basis for the differentiation, actuarial equity, it is concluded that there is an ethical basis for (...) such a practice. The analysis also provides an equivalent means for considering other such analogous claims where actuarial equity is involved. (shrink)

The Securities and Exchange Commission (SEC) sanctioned investor-paid rating agency Egan-Jones for falsely stating that it did not know its clients’ investment positions. The SEC’s action against Egan-Jones raises the broad question whether knowledge of clients’ investment positions creates a conflict of interest for investor-paid ratings. In an experimental setting, we find that investor-paid rating agencies are likely to assign credit ratings that are biased in favor of their clients’ positions, and that this effect is attenuated when the rated (...) company has a sophisticated investor base that is expected to scrutinize ratings. The effect is not conditional on the risk profile of the rated companies. Taken together, our findings suggest that a conflict of interest stemming from investors’ preferences is likely to bias ratings under investor-pays business models, but scrutiny by the company’s investor base can counteract this bias. (shrink)

In this article, the insertion of a two-staged highly interesting question in an online, survey-based field experiment is shown to produce better survey completion rate (i.e., decreases completion refusal by 8%) and sample representativeness (increases the number of moderate answer patterns by 12%) than a typical (same) highly interesting question at the beginning of a survey only. Using nonparametric tests and subgroup probability analysis, measured effects include survey completion rates, response bias and reported demographic differences. In regards to sample (...) representativeness, the results also raise questions about the sensitivity of the conventional practice of comparing early to late respondent means scores as a method of investigating nonresponse bias in marketing research. Alternative approaches to measuring potential non-response bias are compared with the tradition of comparing early-wave verses late-wave mean respondent differences. The results indicate that the conventional mean test fails to identify differences in nonresponse bias; the scores of highly interested or opposed respondents in the first waves produce equivalent means to the scores of the less interested or opposed respondents in the latter wave between the surveys (e.g., 1's and 5's vs. 2's and 4's, both averaging to 3's) that are identifiable through kurtosis and probability analysis. (shrink)

abstract Microcredit is often hailed as an effective way of alleviating poverty. In recent years, however, microfinance institutions have been the target of much criticism due to their comparatively high interest rates (which may be as high as 70–100% per annum). This paper discusses whether it can be morally justified to charge very high rates of interest when lending money to the poor. Arguments are drawn from contemporary as well as historical debates on usury, exploitation, egalitarianism and consequentialism. (...) It is conceded that it would be preferable if interest rates could be reduced, but it is argued that typical microlenders today do nothing wrong in setting their rates at the current levels. Instead the responsibility rests on governments, commercial banks and overseas investors to facilitate an environment where rates could be reduced. (shrink)

Fixed-rate versions of rule-consequentialism and rule-utilitarianism evaluate rules in terms of the expected net value of one particular level of social acceptance, but one far enough below 100% social acceptance to make salient the complexities created by partial compliance. Variable-rate versions of rule-consequentialism and rule-utilitarianism instead evaluate rules in terms of their expected net value at all different levels of social acceptance. Brad Hooker has advocated a fixed-rate version. Michael Ridge has argued that the variable-rate version (...) is better. The debate continues here. Of particular interest is the difference between the implications of Hooker's and Ridge's rules about doing good for others. (shrink)

Interest in credit ratings agencies and their role in financial markets is at an all-time high. Concerns about a lack of transparency concerning process, conflicts of interest, and limited competition are frequently discussed by politicians, regulators and other commentators. These issues we term the credit ratings agency trinity of solicitude. We shed some light on this trinity by considering the unique relationship that exists between corporate borrowers and the CRAs they engage to rate their securities. The exchange (...) relationships literature is used to create a model where commitment plays a central role. Technical qualities, relationship qualities and dependence are theorised as antecedents of commitment, which is described by two constructs of affective commitment and calculative commitment. The issuer’s intention to remain with the CRA, their loyalty, is the consequence of commitment. The model is operationalized by means of a survey questionnaire administered to issuers of corporate debt in the United Kingdom. As expected, perceptions of the quality of the relationship and affective commitment play an important role in CRA-issuer relations. However, contrary to expectations, the technical quality of the rating and issuer dependence on the CRA play little role in determining commitment and continuance. The implications of these findings are discussed along with areas for future research. (shrink)

Concern for the rapidly growing scale and intensity of the human exploitation of the environment, in particular the alienation of natural ecosystems, but also resource exhaustion, pollution, and congestion, leads one to wonder about the short time. horizons allowed for in decision making. Time preference is dictated by the rate of interest, allowing in practice a horizon often not exceeding several decades. I argue that this is unsatisfactory. Some minimal social rate of discount should not be enforced. (...) Instead, it is more feasible to set absolute environmental standards, thereby introducing quantity constraints on our decision making, within which time preference can be permitted to find its own level. This acknowledges that the myopia of human vision may not be a flaw but rather a biological design which has served us weIl in evolution. It may, therefore, be better to change the rules by introducing self-imposed collective constraints than to try to change the shortsightedness of people in their day-to-day grass-roots decision making. (shrink)

Concern for the rapidly growing scale and intensity of the human exploitation of the environment, in particular the alienation of natural ecosystems, but also resource exhaustion, pollution, and congestion, leads one to wonder about the short time. horizons allowed for in decision making. Time preference is dictated by the rate of interest, allowing in practice a horizon often not exceeding several decades. I argue that this is unsatisfactory. Some minimal social rate of discount should not be enforced. (...) Instead, it is more feasible to set absolute environmental standards, thereby introducing quantity constraints on our decision making, within which time preference can be permitted to find its own level. This acknowledges that the myopia of human vision may not be a flaw but rather a biological design which has served us weIl in evolution. It may, therefore, be better to change the rules by introducing self-imposed collective constraints than to try to change the shortsightedness of people in their day-to-day grass-roots decision making. (shrink)

In 2011, Hibbard suggested an intelligence measure for agents who compete in an adversarial sequence prediction game. We argue that Hibbard’s idea should actually be considered as two separate ideas: first, that the intelligence of such agents can be measured based on the growth rates of the runtimes of the competitors that they defeat; and second, one specific (somewhat arbitrary) method for measuring said growth rates. Whereas Hibbard’s intelligence measure is based on the latter growth-rate-measuring method, we survey other (...) methods for measuring function growth rates, and exhibit the resulting Hibbard-like intelligence measures and taxonomies. Of particular interest, we obtain intelligence taxonomies based on Big-O and Big-Theta notation systems, which taxonomies are novel in that they challenge conventional notions of what an intelligence measure should look like. We discuss how intelligence measurement of sequence predictors can indirectly serve as intelligence measurement for agents with Artificial General Intelligence (AGIs). (shrink)

Background: Heart rate variability (HRV) has been considered as a measure of heart-brain interaction and autonomic modulation, and it is modified by cognitive and attentional tasks. In cognitive tasks, HRV was reduced in participants who achieved worse results. This could indicate the possibility of HRV predicting cognitive performance, but this association is still unclear in a high cognitive load sport such as chess Objective: To analyse modifications on HRV and subjective perception of stress, difficulty and complexity in different chess (...) problem tasks. Design: HRV was assessed at baseline. During the chess problems, HRV was also monitored, and immediately after chess problems the subjective stress, difficulty and complexity were also registered. Method: A total of 16 male chess players, age: 35.19 (13.44) and ELO: 1927.69 (167.78) were analysed while six chess problem solving tasks with different level of difficulty were conducted (two low level, two medium level and two high level chess problems). Participants were classified according to their results into two groups: high performance or low performance. Results: Friedman test showed a significant effect of tasks in HRV indexes and perceived difficulty, stress and complexity in both high and low performance groups. A decrease in HRV was observed in both groups when chess problems difficulty increased. In addition, HRV was significantly higher in the high performance group than in the low performance group during chess problems. Conclusions: An increase in autonomic modulation was observed to meet the cognitive demands of the problems, being higher while the difficulty of the tasks increased. Non-linear HRV indexes seem to be more reactive to tasks difficulty, being an interesting and useful tool in chess training. (shrink)

Background: Black, Asian and minority ethnic groups have a high need for organ transplantation but deceased donation is low. This restricts the availability of well-matched organs and results in relatively long waiting times for transplantation, with increased mortality risks. Objective: To identify barriers to organ donor registration and family consent among the BAME population, and to develop and evaluate a training intervention to enhance communication with ethnic minority families and identify impacts on family consent. Methods: Three-phase programme comprising community-based research (...) involving two systematic reviews examining attitudes and barriers to organ donation and effective interventions followed by 22 focus groups with minority ethnic groups; hospital-based research examining staff practices and influences on family consent through ethics discussion groups with staff, a study on intensive care units and interviews with bereaved ethnic minority families; and development and evaluation of a training package to enhance cultural competence among ICU staff. Setting: Community focus group study in eight London boroughs with high prevalence of ethnic minority populations. Hospital studies at five NHS hospital trusts. Participants: Community studies: 228 focus group participants; hospital studies: 35 nurses, 28 clinicians, 19 hospital chaplains, 25 members of local Organ Donation Committees, 17 bereaved family members; and evaluation: 66 health professionals. Data sources: Focus groups with community residents, systematic reviews, qualitative interviews and observation in ICUs, EDGs with ICU staff, bereaved family interviews and questionnaires for trial evaluation. Review methods: Systematic review and narrative synthesis. Results: Community studies: Organ Donor Register – different ethnic/faith and age groups were at varying points on the ‘pathway’ to organ donor registration, with large numbers lacking knowledge and remaining at a pre-contemplation stage. Key attitudinal barriers were uncertainties regarding religious permissibility, bodily concerns, lack of trust in health professionals and little priority given to registration, with the varying significance of these factors varying by ethnicity/faith and age. National campaigns focusing on ethnic minorities have had limited impact, whereas characteristics of effective educational interventions are being conducted in a familiar environment; addressing the groups’ particular concerns; delivery by trained members of the lay community; and providing immediate access to registration. Interventions are also required to target those at specific stages of the donation pathway. Hospital studies: family consent to donation – many ICU staff, especially junior nurses, described a lack of confidence in communication and supporting ethnic minority families, often reflecting differences in emotional expression, faith and cultural beliefs, and language difficulties. The continuing high proportion of family donation discussions that take place without the collaboration of a specialist nurse for organ donation reflected consultants’ views of their own role in family consent to donation, a lack of trust in SNODs and uncertainties surrounding controlled donations after circulatory death. Hospital chaplains differed in their involvement in ICUs, reflecting their availability/employment status, personal interests and the practices of ICU staff. Evaluation: professional development package – a digital versatile disk-based training package was developed to promote confidence and skills in cross-cultural communication. Initial evaluation produced positive feedback and significant affirmative attitudinal change but no significant difference in consent rate over the short follow-up period with requirements for longer-term evaluation. Limitations: Participants in the focus group study were mainly first-generation migrants of manual socioeconomic groups. It was not permitted to identify non-consenting families for interview with data regarding the consent process were therefore limited to consenting families. Conclusions: The research presents guidance for the effective targeting of donation campaigns focusing on minority ethnic groups and provides the first training package in cultural competence in the NHS. Future work: Greater evaluation is required of community interventions in the UK to enhance knowledge of effective practice and analysis of the experiences of non-consenting ethnic minority families. Funding: The National Institute for Health Research Programme Grants for Applied Research programme. (shrink)

We propose a new metric for evaluating the informativeness of a set of ratings from a single rater on a given scale. Such evaluations are of interest when raters rate numerous comparable items on the same scale, as occurs in hiring, college admissions, and peer review. Our exposition takes the context of peer review, which involves univariate and multivariate cardinal ratings. We draw on this context to motivate an information-theoretic measure of the refinement of a set of ratings (...) – entropic refinement – as well as two secondary measures. A mathematical analysis of the three measures reveals that only the first, which captures the information content of the ratings, possesses properties appropriate to a refinement metric. Finally, we analyse refinement in real-world grant-review data, finding evidence that overall merit scores are more refined than criterion scores. (shrink)

This chapter argues for deregulation of the credit-rating market. Credit-rating agencies are supposed to contribute to the informational needs of investors trading bonds. They provide ratings of debt issued by corporations and governments, as well as of structured debt instruments (e.g. mortgage-backed securities). As many academics, regulators, and commentators have pointed out, the ratings of structured instruments turned out to be highly inaccurate, and, as a result, they have argued for tighter regulation of the industry. This chapter shows, however, that (...) the role of credit-rating agencies in achieving justice in finance is not as great as these commentators believe. It therefore argues instead for deregulation. Since the 1930s, lawgivers have unjustifiably elevated the rating agencies into official, legally binding sources of information concerning credit risk, thereby unjustifiably causing many institutional investors to outsource their epistemic responsibilities, that is, their responsibility to investigate credit risk themselves. (shrink)

The paper presents some ethical aspects of the credit rating agencies (CRAs) market in the light of the latest economic crisis of 2008. A historical background is also shown and how the CRA market emerged. It is emphasised how the functioning of CRAs contributed to the outbreak of the crisis and what were the consequences of over- or underestimated rating grades. The downgrading of a country has a significant influence on the deterioration of the economic condition. Simultaneously, it afflicts the (...) citizens, who have to pay for it e.g. with higher tax rates. It is believed that overestimated ratings lead to a speculative bubble, which ends up with the crisis. The paper indicates the problems connected with the way that CRAs operate and how they relate to business ethics. The fact that those institutions are profitprofile entities, which earn their income from clients, whose financial instruments are assessed, may bring about a conflict of interests. Moreover, it is outlined how the governmental policies of countries left CRAs without any particular control, which in the end was a significant factor, too. Finally, some potential solutions are discussed, and how the approach of CRA managers should change in order to prevent the market from similar situations in the future. (shrink)

Art therapy encourages the use of art materials to express feelings and thoughts in a supportive environment. Art materials differ in fluidity and are postulated to thus differentially enhance emotional response (the more fluid the material the more emotion). Yet, to the best of our knowledge, this assumption has not been empirically tested. The current study aimed to examine the emotional and physiological responses to art making with different art materials. We were particularly interested in vagal activity, indexed by heart (...) rate variability (HRV), because of its association with numerous health related outcomes. In this study, fifty adults (mean age 33 ± 10.27 years, 52% males) participated in a repeated measures experiment, in which they were requested to draw with three art materials (order randomized) differing in their level of fluidity (pencil, oil-pastels and gouache paint) intermittent with periods of music. We measured the emotional response to art making with each material using a self-report measure and matrices of HRV using a wearable electrocardiogram (ECG) device. We calculated two indices of HRV, one indicative of parasympathetic nervous system (PNS) activity, and one indicative of sympathetic nervous system (SNS) activity. Art making with gouache paint and oil pastels resulted in improved positive mood, while pencil did not. Art making explained approximately 35% of the variability in parasympathetic reactivity, which may indicate changes in emotional regulation processes during the art-making task. Yet, fluidity was not sufficient to explain the reaction to art-making. Surprisingly, the largest suppression of PNS and augmentation of the SNS occurred during art-making with oil-pastels and not with Gouache. Moreover, PNS and SNS reactivity to oil-pastels were related to emotional valance, which may point to emotional engagement. We can conclude that art-making with oil-pastels, first created in Japan in 1924 to increase self-expression of students, results in a unique emotional and physiological responses. These findings might be explained by the enhanced tactile experience of art-making with oil-pastels along with their relative fluidity, triggering an arousal pattern. Further studies that take the format and presentation of the materials as well as the content of the artwork, into account, are needed. (shrink)

Social attitudes toward usury (here defined using the archaic meaning as the taking of interest on loans) have changed dramatically over the centuries. From antiquity until the Protestant Reformation, usury was regarded as an inherently evil activity. Today, with few exceptions, usury is met with moral indifference. Modern objections to usury are limited to protest against "excessive" interest rates rather than interest per se. With this change in focus, the very meaning of the term "usury" has also (...) changed. Many early pronouncements against the taking of interest emphasized the plight of the poor, but ironically, the poor actually pay the highest rates of interest in the modern American economy. Despite the universality of usury, some socio-economic subcultures still manage to avoid the taking or giving of interest. Orthodox branches of both Judaism and Islam have maintained bans on usury throughout the centuries and up to the present time. This is especially interesting in the case of Judaism, given the popular cultural image of the Jew as usurer. Jewish free loan systems may actually offer a model for modern loan programs that can be designed to aid poor borrowers, who are frequently shut out of mainstream financial services. (shrink)

Keynes's theory of interest is central to his broader argument. However, short‐run policy, which takes the so‐called normal rate of interest as given and aims at affecting the prevailing rate, must be distinguished from long‐run reform, which aims at changing the normal rate. The low demand that Keynes associated with high interest was believed to be inherent in a decentralized, consumption‐oriented economy. Consequently, he advocated reform in the direction of central control. Despite his “moral (...) and philosophical” agreement with Hayek's Road to Serfdom, Keynes differed fundamentally from Hayek in terms of their contrasting perceptions of the market's shortcomings and their judgments about the government's potential for improving the economy's performance. (shrink)

Are there ever good epistemic reasons to neglect base rates? Assuming an empiricist modal epistemology, I argue that we face an interesting tension between some very plausible epistemic norms: a norm requiring us to proportion our beliefs to the evidence may facilitate knowledge of the actual world, whilst inhibiting our acquisition of modal knowledge—knowledge of how things could be, but are not. The potential for this tension in our epistemic norms is a significant result in its own right. It can (...) also rationalize certain forms of demographic base-rate neglect. (shrink)

In psycholinguistics, concepts are considered abstract if they do not apply to physical objects that we can touch, see, feel, hear, smell or taste. Psychologists usually distinguish concrete from abstract concepts by means of so-called _concreteness ratings_. In concreteness rating studies, laypeople are asked to rate the concreteness of words based on the above criterion. The wide use of concreteness ratings motivates an assessment of them. I point out two problems: First, most current concreteness ratings test the intuited concreteness (...) of word forms as opposed to concepts. This ignores the ubiquitous phenomenon of lexical ambiguity. Second, the criterion of abstract concepts that the instruction texts of rating studies rely on does not capture the notion that psychologists working on abstract concepts are normally interested in, i.e., concepts that could reasonably be sensorimotor representations. For many concepts that pick out physical objects, this is not reasonable. In this paper, I propose a characterization of concrete and abstract concepts that avoids these two problems and that may be useful for future studies in psychology. (shrink)

This study examines the extent to which scientific and biomedical journals have adopted conflict of interest (COI) policies for authors, and whether the adoption and content of such policies leads to the publishing of authors’ financial interest disclosure statements by such journals. In particular, it reports the results of a survey of journal editors about their practices regarding COI disclosures. About 16 percent of 1396 highly ranked scientific and biomedical journals had COI policies in effect during 1997. Less (...) than 1 percent of the articles published during that year in the journals with COI policies contained any disclosures of author personal financial interests while nearly 66 percent of the journals had zero disclosures of author personal financial interests. Nearly three fourths of journal editors surveyed usually publish author disclosure statements suggesting that low rates of personal financial disclosures are either a result of low rates of author financial interest in the subject matter of their publications or poor compliance by authors to the journals’ COI policies. (shrink)

The current proxy voting system in the United States has become the subject of considerable controversy. Because institutional investment managers have the authority to vote their clients’ proxies, they have a fiduciary obligation to those clients. Frequently, in an attempt to fulfill that obligation, these institutional investors employ proxy advisory services to manage the thousands of votes they must cast. However, many proxy advisory services have conflicts of interest that inhibit their utility to those seeking to discharge their fiduciary (...) duties. In this article, we describe the current proxy advisory network as an example of how current notions of conflicts of interest fall short when explaining the behavior of an interconnected set of market players whose remit is to act in the best interests of their investors. We discuss what participants in this system should do to bring transparency and accuracy to the proxy advice industry. (shrink)

How does personality influence the relationship between appraisals and emotions? Recent research suggests individual differences in appraisal structures: people may differ in an emotion's appraisal pattern. We explored individual differences in interest's appraisal structure, assessed as the within-person covariance of appraisals with interest. People viewed images of abstract visual art and provided ratings of interest and of interest's appraisals (novelty–complexity and coping potential) for each picture. A multilevel mixture model found two between-person classes that reflected distinct (...) within-person appraisal styles. For people in the larger class (68%), the novelty–complexity appraisal had a stronger effect on interest; for people in the smaller class (32%), the coping potential appraisal had a stronger effect. People in the larger class were significantly higher in appetitive traits related to novelty seeking (e.g., sensation seeking, openness to experience, and trait curiosity), suggesting that the appraisal classes have substantive meaning. We conclude by discussing the value of within-person mixture models for the study of personality and appraisal. (shrink)

Commentators agree that simple conclusions about a general base rate fallacy are not appropriate. It is more constructive to identify conditions under which base rates are differentially weighted. Commentators also agree that improving the ecological validity of the research is desirable, although this is less important to those interested exclusively in psychological processes. The philosophers and ecologists among the commentators offer a kinder perspective on base rate reasoning than the psychologists. My own perspective is that the interesting questions (...) (both psychological and normative/prescriptive) are best answered through empirical studies that use real-world performance standards. (shrink)

This paper interprets the British legislative process that initiated the first comprehensive national regulation of embryo research and fertility services and examines subsequent efforts to restrain the assisted reproduction industry. After describing and evaluating British regulatory measures, I consider successive failures to control the assisted reproduction industry in the US. I discuss disparities between UK and US regulatory initiatives and their bearing on regulation in other countries. Then I turn to the political and social structures in which the assisted reproduction (...) industry is embedded. I argue that regulatory bodies are seldom neutral arbiters. They tend to respond most readily to special interests and neglect strategies that could more effectively meet the health needs of the people they represent. Neither national nor international bodies have aggressively pursued policies to harness the industry, reduce infertility rates, or meet the needs of people whose fertility is threatened by substandard healthcare and environmental neglect. In conclusion, I consider recent initiatives by activist groups to mount an alternative response to the industry's current practices and build a transnational reproductive justice movement. (shrink)

The notion of sound symbolism receives increasing interest in psycholinguistics. Recent research – including empirical effects of affective phonological iconicity on language processing (Adelman et al., Citation2018; Conrad et al., Citation2022) – suggested language codes affective meaning at a basic phonological level using specific phonemes as sublexical markers of emotion. Here, in a series of 8 rating-experiments, we investigate the sensitivity of language users to assumed affectively-iconic systematic distribution patterns of phonemes across the German vocabulary:After computing sublexical-affective-values (SAV) concerning (...) valence and arousal for the entire German phoneme inventory according to occurrences of syllabic onsets, nuclei and codas in a large-scale affective normative lexical database, we constructed pseudoword material differing in SAV to test for subjective affective impressions.Results support affective iconicity as affective ratings mirrored sound-to-meaning correspondences in the lexical database. Varying SAV of otherwise semantically meaningless pseudowords altered affective impressions: Higher arousal was consistently assigned to pseudowords made of syllabic constituents more often used in high-arousal words – contrasted by less straightforward effects of valence SAV. Further disentangling specific differential effects of the two highly-related affective dimensions valence and arousal, our data clearly suggest arousal, rather than valence, as the relevant dimension driving affective iconicity effects. (shrink)

Could an accreditation, certification, or rating mechanism help the pharmaceutical industry improve both its bioethical performance and its public reputation? Other industries have used such systems to assess, improve, distinguish, and demonstrate the quality of their services, processes, and products. These systems have also helped increase transparency, accountability, stakeholder confidence, and awareness of industry best practices. This article explains how market forces can be harnessed to recognize and promote better bioethical performance by pharmaceutical companies when there are good systems to (...) accredit, certify, or rate. It concludes with a review of relevant failures of credit-rating agencies — such as conflicts of interests and revolving-door practices — to illuminate some of the pitfalls of developing a bioethics accreditation, certification, or rating system for pharmaceutical companies. (shrink)

We present a study comparing, in English, perceived distributions of men and women in 422 named occupations with actual real world distributions. The first set of data was obtained from previous a large-scale norming study, whereas the second set was mostly drawn from UK governmental sources. In total, real world ratios for 290 occupations were obtained for our perceive vs. real world comparison, of which 205 were deemed to be unproblematic. The means for the two sources were similar and the (...) correlation between them was high, suggesting that people are generally accurate at judging real gender ratios, though there were some notable exceptions. Beside this correlation, some interesting patterns emerged from the two sources, suggesting some response strategies when people complete norming studies. We discuss these patterns in terms of the way real world data might complement norming studies in determining gender stereotypicality. (shrink)

Carroll (1991) encouraged researchers in Social Issues Management (SIM) to continue to measure Corporate Social Performance (CSP) from a variety of different perspectives utilizing a variety of different measures. In addition, Wolfe and Aupperle (1991) (and others) have asserted that there is no, single best way to measure CSP and that multiple measures and perspectives help develop the field. However, Pfeffer (1993) suggest that a lack of consistent measurement has constrained organization studies (and by implication, the field of social issues (...) management,) in its development as a field. It may be in the best interest of social issues management researchers to try to development a common body of measures and data. Recently, Kinder, Lydenberg and Domini & Co. (KLD — a social choice investment advisory firm) has made available their social performance database. The KLD data have potential to become a widely accepted set of CSP measures. The purpose of this paper is to present a construct validity study comparing the KLD data to other measures of CSP. (shrink)

This article explores whether the bioethical performance and trustworthiness of pharmaceutical companies can be improved by harnessing market forces through the use of accreditation, certification, or rating. Other industries have used such systems to define best practices, set standards, and assess and signal the quality of services, processes, and products. These systems have also informed decisions in other industries about where to invest, what to buy, where to work, and when to regulate. Similarly, accreditation, certification, and rating programs can help (...) drug companies address stakeholder concerns in four areas: clinical trial design and management, dissemination of clinical trial results, marketing practices, and the accessibility of medicines. To illuminate processes — such as conflicts of interests and revolving-door policies — that can jeopardize the integrity of accreditation, certification, and ratings systems, the article concludes with a consideration of recent failures of credit-rating agencies and a review of the regulatory capture literature. (shrink)

Altruism and the medical profession have been linked throughout the history of medicine. Students are drawn to the calling of medicine because of altruistic values, dedication to service, and the desire to alleviate suffering and promote healing. Despite a dedication to these values, altruism in medicine is threatened by empathy erosion that develops in the clinical years of medical school and an increasing rate of medical student burnout. Currently, there are two widespread movements in medicine aimed at addressing the (...) dual loss of altruism and physician and student burnout—professionalism and wellness. Despite widespread recognition of the problems and programs aimed at improving them, there has been little headway, and even calls to abandon altruism in the modern marketplace of medicine. What is needed is not an abandonment of a fundamental, defining value of the profession, but a re-evaluation of the meaning of altruism in medicine and a framework that allows for students and physicians to provide altruistic care for a sustainable, rewarding career in the healing profession. This paper proposes the Enlightened Self-Interest in Altruism model as an ethical framework to allow medical students to synergize the interests of the self with those they serve in a mutually beneficial relationship to improve patient care and the healthcare system at large. The ESIA model acknowledges that egoism and altruism are intertwined, dynamic motivators of behavior. In the enlightened self-interest approach, the interests of the group are also the interests of the self. The physician–patient relationship is a dyad in which egoism and altruism may converge in an enlightened way that acknowledges that the interests of one are the interests of the whole. This is a paradigm shift from the historical view of egoism and altruism as opposing motivations. This paper will present the threats to altruism, explore the interface of egoism and altruism in a clinical vignette, and then present the ESIA framework as an educational approach to aligning the interests of providers and patients to prevent burnout and promote altruism. (shrink)

It is shown that the so called slow growing hierarchy depends non trivially on the choice of its underlying structure of ordinals. To this end we investigate the growth rate behaviour of the slow growing hierarchy along natural subsets of notations for $\Gamma_0$. Let T be the set-theoretic ordinal notation system for $\Gamma_0$ and $T^{tree}$ the tree ordinal representation for $\Gamma$. It is shown in this paper that $_{\alpha \in T}$ matches up with the class of functions which are (...) elementary recursive in the Ackermann function as does $_{\alpha \in T^{tree}}$. By thinning out terms in which the addition function symbol occurs we single out subsystems $T* \subseteq T$ and $T^{tree*} \subseteq T^{tree}$ and prove that $_{\alpha \in T^{tree*}}$ still matches up with $_{\alpha \in T^{tree}}$ but $_{\alpha \in T*}$ now consists of elementary recursive functions only. We discuss the relationship between these results and the $\Gamma_0$-based termination proof for the standard rewrite system for the Ackermann function. (shrink)