Assessing the Performance of the Price Cap Plan for Local Exchange Carriers in the United States

In 1991 the FCC implemented a price cap plan for local exchange carriers' interstate access service designed to deal with the regulatory boundaries problem arising from the breakup of AT&T in 1984. The experience with the price cap plan demonstrates the difficulty of predicting productivity growth accurately and makes clear that regulators cannot depend upon a pure price cap plan to keep prices within a reasonable range of costs. With periodic reviews to readjust plan parameters, however, a price cap plan can maintain the rate-of-return close to the target rate-of-return without diminishing the price cap plan's incentives for efficient production. A simple method of recalculating the X-factor based on the rate-of-return over the previous three years worked well in simulations. If this procedure had been used over the price cap period 1991 to 2000, prices would have been 20 percent lower and expenditures on LECs' telecommunications service subject to a price cap would have been $3.8 billion lower.     

THE CURRENTS BENEATH THE “RISING TIDE” OF SCHOOL CHOICE: AN ANALYSIS OF STUDENT ENROLLMENT FLOWS IN THE CHICAGO PUBLIC SCHOOLS

Existing research highlights that families face geographic, social, and psychological constraints that may limit the extent to which competition can take hold in school choice programs. In this paper, we address the implications of such findings by creating a network of student flows from 11 cohorts of eighth‐grade students in the Chicago Public Schools (CPS). We applied a custom algorithm to group together schools with similar sending and receiving patterns, and calculated the difference in mean achievement between a student's attended and assigned high schools. For all identified school groupings, we found that the students were on average moving to higher achieving schools. We also found that the movement toward higher achieving schools of the top achievement quartile of students was over twice as large as that of the bottom quartile, but that the flows of both the highest and lowest achieving student quartiles were toward higher achieving destinations. Our results suggest that student movements in CPS between the years of 2001 to 2005 were consistent with creating market pressure for improvement as well as increasing segregation by achievement. However, further research into how schools responded to those movements is required to make inferences about the level or consequences of competition generated by choice‐related reforms during that time.     

Service Quality Effects of Incentive Regulation on Access Service in Telecommunications in the United States

Incentive regulation in the form of price caps was adopted for interstate access service in 1991 as a way to provide local exchange carriers with an incentive to improve their productive efficiency. An issue that has arisen with the adoption of price cap regulation is whether deterioration in service quality for interstate access service has been an unintended consequence. The analysis in this paper uses several different measures of service quality, including the average installation interval, the percent of commitments met, total trouble reports, and the average repair interval for both switched access service and special access service, to investigate empirically whether there has been a decline in service quality between 1991 and 2000. The results are conclusive. Overall service quality has fallen. To rectify the situation, a proposal is offered to adjust the price cap index to penalize LECs who fail to provide an acceptable level of aggregate service quality.     

The Soviet Union and Churchill's appeals for high‐level talks, 1953–54: New evidence from the Russian archives

New evidence from the Russian archives offers proof that Winston Churchill's calls for top‐level talks, 1953–54, were greeted with mistrust and scepticism by Moscow. Soviet policy makers realized that Churchill was weak, entirely dependent on American policy and unable to act as mediator between East and West. They were also sceptical as to whether any real progress could be made during an Anglo‐Soviet summit meeting and, instead, pressed for four‐power talks at Foreign Minister level. Finally, the Soviet records shed light on the impact of the power struggle within the Kremlin on its responses to Churchill's initiative, with Vyacheslav Molotov preventing Georgi Malenkov from meeting the British Prime Minister.     

Sociolinguistic and psycholinguistic indications of behavior disorders: analysis of a prisoner's discourse

Human verbal language communicates both manifest and latent messages concerning the speaker's world and behavior. To understand his world and analyze his problems,(1) it is important to decode the latent messages as they may hint at the root causes. The authors present a discourse analysis of a prisoner's text and a semantic and morphological analysis of it. This text reflects contempt for the law and its representatives, together with a weak attachment to legitimate society, neutralization of personal responsibility, denial of guilt, and low self-esteem. Sociolinguistic and psycholinguistic analysis points toward a more profound evaluation of the perceptions and world of the speaker. It seems that he yearns for attachment, for understanding and social acceptance, and perhaps even to abandon crime. The prisoner's latent feelings of helplessness and fear of humiliation may help the therapist establish a therapeutic relationship and help him change his perceptions and behavior.