The Professionalization of Public Accounting: A Social Dilemma Perspective

This study uses a social dilemma model of auditing and a model of cooperative regulatory enforcement to provide a framework within which the evolution of self-regulation in the U.S. accounting profession is studied. From a social dilemma perspective, individual public accounting firms are best off, in a single period sense, by providing a low quality audit product, which is defined in terms of the degree of auditor acquiescence to managers' accounting method discretion. However, firms' collective welfare is maximized by high quality auditing. The cooperative regulatory model employed is premised on the existence of a plausible government threat of punishments and invasive regulations, which motivates self-regulation in an industry. We argue that prior to enactment of the securities acts, public accounting firms faced a social dilemma in which there were limited incentives for high quality auditing either voluntarily or through the establishment of self-regulation. The securities acts provided a plausible threat to which the accounting industry responded by implementing self-regulation in order to avoid invasive and costly government regulation. After the emergence of the accounting profession, there occurred a long period of cooperative regulation with the SEC. Management discretion over accounting methods increased during this time period and audit quality correspondingly decreased, suggesting possible inefficient capture of the SEC. Evidence of an evolution towards a tripartite form of regulation appeared in the 1970s when the SEC and public accounting began to be critically reviewed by Congress. From this time to the present, new regulatory threats have motivated a series of self-regulatory responses by public accounting to improve audit quality.     

Veteran Care in the United Kingdom and the Sustainability of the ‘Military Covenant’

This article assesses how veteran care can be placed at the centre of our understanding of the modern Military Covenant and located as a key issue in contemporary civil–military relations and public policy. Healthcare and welfare provision have become primary manifestations of how the British state fulfils its duty of care towards military personnel. The article aims to present an overview of current provision for veterans of Britain's modern wars and draw conclusions regarding the state's ability to provide short and long‐term healthcare and welfare requirements to veterans as part of the Covenant under the rubric of ‘Big Society’‐inspired policy shifts engendered by the Conservative–Liberal Democrat coalition government.     

TRANSITION OR TRANSFORMATION? -ENVIRONMENTAL POLICY UNDER THATCHER

The degree of fundamental change or continuity in environmental policy under the Thatcher governments since 1979 is explored in terms of three functional areas of policy-making. The impact of Thatcherite ideology has been strongest in the development function. Deregulation has weakened the role of strategic land use planning. A strong central state allied to a free market has enabled primacy to be given to the promotion of private sector development. Compromise has been characteristic of the conservation function where the Government has had to arbitrate between its farming and rural preservationist constituencies at a time when the rural economy has shifted from an emphasis on food production to the problem of surplus. International concerns about transboundary pollution and EEC environmental directives have constrained the Government's freedom of action in the ecological function of policy. Overall, environmental policy shows a mixture of transformation where ideology is strong and pragmatism where political and structural constraints ensure the longer term continuity of policy.     

MARKETS OR POLITICS? THE DETERMINANTS OF LABOUR RELATIONS IN A NATIONALIZED INDUSTRY

This article examines 'market' and 'political' explanations for the nature of nationalized industry labour relations, using British Rail as a case study. The market perspective suggests that market insulation generated 'cosy' industrial relations since it allowed managers to acquiesce in restrictive practices. More robust labour management recently is the result of greater exposure to market forces. This explanation is rejected because BR was exposed to competitive pressures before the Thatcher era, and because there is no simple relationship between market forces and managerial actions. Instead political uncertainty is the primary determinant of the state of industrial relations. In the 1970s British Rail management and unions formed a 'tacit alliance' to limit the potential damage of government interventions. This alliance has broken down in the 1980s not primarily because of market pressures but because government interventions have become more explicitly concerned with industrial relations.     

Something about young people or something about elections? Electoral participation of young people in Europe: Evidence from a multilevel analysis of the European Social Survey

Abstract.  Turnout at general elections across Europe is in decline as it is in other established democracies. A particular cause for concern is that young people are less likely to participate than older voters. Evidence presented in this article, based on national election results and the 2002–2003 European Social Survey, shows the overall turnout rate for 22 European countries in elections between 1999 and 2002 was 70 per cent compared to 51 per cent for electors aged less than 25. The authors examine national variations in turnout for young people across Europe, and use multilevel logistic regression models to understand these variations, and to test the extent to which they are attributable to the characteristics of young people and the electoral context in each country. Variations in turnout among young people are partially accounted for by the level of turnout of older voters in the country and partly by the characteristics of young voters, including the level of political interest and civic duty. The authors conclude that both individual-level and election-specific information are important in understanding the turnout of young electors.