Faculty

In the aftermath of the terrorist attacks of Sept. 11, 2001, insurance coverage for commercial property and casualty loss in the event of terrorism became hard to find and prohibitive to purchase. Congress responded in November 2002, enacting the Terrorism Risk Insurance Act. TRIA temporarily put the federal government in the property and casualty risk reinsurance business, agreeing to share in the compensation costs resulting from acts of terrorism. Meantime, insurance companies were to have assessed their exposure and learned how to price and underwrite terrorism policies. In December, unless Congress takes action, the TRIA will expire, but insurance companies have yet to come up with a way to provide meaningful and manageable terrorism coverage.

Europe and the U.S., which had been clamoring for a free-floating Chinese currency in the hopes of addressing growing trade deficits, got their wish this summer when China announced a limited float for the Yuan. While the announcement should please many free-market economists – among them Edward C. Prescott, 2004 Nobel Laureate and professor at the W. P. Carey School of Business — Chinese national leaders have made it clear that when it comes to its economy, they do not welcome external "advice."

Multinational corporations, including some of the icons of American business, routinely cut tax liability through pricing schemes. By dropping the cost of goods sold to subsidiaries and inflating the price of goods that come back to the U.S., multinationals transfer profits — and tax liability — to tax-friendly nations. Experts estimate that corporations shift $62 to $87 billion of pre-tax income out of the U.S. each year resulting in substantial tax revenue losses. Legislation pending in Congress could help plug corporate tax-haven loopholes.

What could an undertaker, a welfare counselor and a prostitute possibly have in common? All three are employed in occupations deemed undesirable by most people. A professor of management from the W. P. Carey School of Business joined with several colleagues to study so-called "dirty work" and the coping strategies used by workers, along with strategic approaches used by managers in "dirty" occupational fields. The researchers found that those employed in these jobs typically need to develop normalizing strategies to counter the social, physical or moral "taint" resulting from their undervalued work.

The Taxpayer Bill of Rights, also known as TABOR, is shaping up as a powerful movement in the continuing battle to control government spending. But whether it is a grassroots phenomenon or a grass fire depends on your point of view. Designed to limit state spending by pegging taxes to the cost of living and population growth, TABOR is viewed as the holy grail by fiscal conservatives, but a debilitating affliction by moderates. Colorado's version, passed in 1992, is being used by both sides to argue their case.