The consequences of deregulation: A comparison of the experiences of UK building societies with those of US Savings and Loan Associations

It has been estimated that deregulation of US S&Ls will cost the US taxpayer ￡500bn in terms of the compensation paid out for the resulting scandals and failures. In contrast, the deregulation of UK building societies, although initially followed by a series of scandals and losses of ￡1bn., eventually resulted in substantially increased profitability. The social effects in the UK have been quite different to those in the US. As a result of the increased importance placed on profitability as opposed to mutuality, many homeowners have had their properties repossessed, and investors been mis-soId unsuitable investments. However, UK building societies, by a mixture of good luck and judgement, have avoided the principal regulatory pitfalls, which beset the S&Ls in terms of bankruptcies and fraud. This paper seeks to explain these different post-deregulation experiences. It extends to the UK the looting model of Akerlof and Romer (1993) and the managerial diversion model of Nichols (1972) which went so far to explain and anticipate, respectively, the US experience. This revised version was published online in July 2006 with corrections to the Cover Date.     

Using the good cop/bad cop profile with the MMPI-2

The Minnesota Multiphasic Personality Inventory (MMPI) has been widely used in a variety of ways to screen candidates for law enforcement positions. This study extends the use of the MMPI Good Cop/Bad Cop (GC/BC) profile (Blau, Super, & Brady, 1993) to the MMPI-2. The MMPI-2 profiles of 39 veteran police officers were used to predict their performance (No Apparent Problems, Borderline, or Serious Problems Possible), and these predictions were compared with supervisors’ ratings of the officers’ actual performance. The MMPI-2 predictions were accurate for 46% of the officers, a rate that was significantly better than chance (p=.024). Based on the current data, the best selection outcome would be obtained by accepting officers whose MMPI-2 profiles place them in the No Apparent Problems or Borderline groups, and rejecting officers whose profiles suggest Serious Problems Possible. This could be accomplished simply by rejecting any officer who obtained a score above 65T on any of the clinical scales. This selection strategy would have resulted in the acceptance of 22 officers, 19 of whom were highly rated by their supervisors, and the rejection of 17 officers, 11 of whom were rated as borderline or poorer by their supervisors. It would also result in the erroneous rejection of 6 officers who were highly rated by supervisors. AUTHOR NOTE: An earlier version of this paper was presented at the 1994 annual meeting of the Society for Police and Criminal Psychology, in Roswell, New Mexico. The authors wish to thank Jim Herndon, Ph.D., for this comments on this study.     

The Service Sector's Acquisition and Development of Information Technology: Infrastructure and Productivity

The paper explains why the productivity of information technology (IT) in the service sector of the U.S. economy is increased by the provision of infratechnology. The size and growth of the service sector and its investment in IT are discussed, and a key fact and a key inference are developed. The fact: The absorption costs of IT are the vast majority of the IT investment costs to the service sector. The inference: Infratechnology investments are an efficient way to increase both private and social benefits of incurring the cost of implementing IT.