Research and trends in governmetal accounting and reporting

Budgeting is a form of financial reporting using accounting information. This paper reviews current research and trends in governmental accounting and reporting for state and local governments in the United States. In the first section, the contributions of the Governmental Accounting Standards Board are reviewed, including the conceptual framework now guiding the evolution of accounting standards. Also reviewed are developments that are expected to have a significant impact on budgeting in the future, including service efforts and accomplishments reporting, financial condition, and budget reporting. The second section reviews accounting research in four distinct areas: capital markets; financial reporting; behavioral experiments; and, public choice. The future of governmental accounting and reporting will reflect changes in the standards of practice and the use of theory to direct research.     

The Reliability of Lie Detection Performance

We examined whether individuals’ ability to detect deception remained stable over time. In two sessions, held one week apart, university students viewed video clips of individuals and attempted to differentiate between the lie-tellers and truth-tellers. Overall, participants had difficulty detecting all types of deception. When viewing children answering yes–no questions about a transgression (Experiments 1 and 5), participants’ performance was highly reliable. However, rating adults who provided truthful or fabricated accounts did not produce a significant alternate forms correlation (Experiment 2). This lack of reliability was not due to the types of deceivers (i.e., children versus adults) or interviews (i.e., closed-ended questions versus extended accounts) (Experiment 3). Finally, the type of deceptive scenario (naturalistic vs. experimentally-manipulated) could not account for differences in reliability (Experiment 4). Theoretical and legal implications are discussed.     

Trust,regulation, and redistribution why some governments overregulate and under-redistribute

For many social scientists, government intervention is linked to low levels of social trust and corruption, while others associate it with high trust and low corruption. We aim to reconcile these contrasting views by distinguishing the opposing effects of trust on two alternative types of government intervention: regulation and redistribution. We argue that distrusting individuals demand more governmental regulation (H1) but less government redistribution (H2), and this could be one of the mechanisms explaining why countries with low levels of trust tend to both overregulate and under-redistribute. And the effects of trust on policy preferences are conditional on the quality of institutions. The higher the level of quality of government in a particular region, the more high-trusting individuals will like government redistribution and dislike government regulation that restricts the operations of free markets (H3). We test these hypotheses with data from the latest round of the European Quality of Government Index (EQI) survey, which covers 77,000 individuals from 185 regions of 21 EU member states.     

Local media tone,economic conditions,and the evaluation of US governors

Connections between media coverage, economic conditions, and performance evaluations of political leaders have seldom been explored in specific local media markets, due to the challenges of measuring media tone and content for a large number of media outlets or markets. In this paper, we develop a measure of media tone by comparing the economic evaluations of local media consumers and national media consumers within the same media market. We then use this measure to evaluate the relationship between media tone and objective economic conditions. We find that positive media tone increases the probability that individuals will approve of the governor’s performance in office, and that tone also attenuates the negative relationship between unemployment and gubernatorial approval.     

An input-output approach to the measurement of the information economy

This study presents a set of methods based on input-output analysis to measure the size and structure of a country's information economy. Published current national data bases do not identify even the broad contours of a country's information economy. The methodology which is stylised algebraically using input-output modelling unravels the latent information economy. Both the primary or marketed information activities and the non-marketed or secondary information activities are measured. The interdependencies of the primary and secondary information sectors with the non-information sectors such as agriculture and manufacturing are examined. Linkages and multipliers are also calculated using consistent approaches. Finally, the methodology is empirically validated using Australia as a case-study and the results are discussed.     

Egocentric Ethics

Ethical judgments are often egocentrically biased, such that moral reasoners tend to conclude that self-interested outcomes are not only desirable but morally justifiable. Although such egocentric ethics can arise from deliberate self-interested reasoning, we suggest that they may also arise through unconscious and automatic psychological mechanisms. People automatically interpret their perceptions egocentrically, automatically evaluate stimuli on a semantic differential as positive or negative, and base their moral judgments on affective reactions to stimuli. These three automatic and unconscious features of human judgment can help to explain not only why ethical judgments are egocentrically biased, but also why such subjective perceptions can appear objective and unbiased to moral reasoners themselves.