An Economic Analysis of the Legal Concept of Trustees' Power of Investment

Authorised trustee status is a legal concept which has economic implications; one of the major implications is that it assists in the direction of investment funds into particular securities and areas of the economy. The concept of authorised trustee status, while attempting to achieve specific outcomes for the beneficiaries of trusts cannot be relied upon to secure these results. Economic analysis of the role of the trustee maintains that this role is one of portfolio manager; a role which is complex but which is explicable in terms of definable procedures and practices. The role of trustee as portfolio manager is one which requires greater financial knowledge than can be assumed is possessed by all trustees. The trustee as portfolio manager is required to maintain a review of decisions make under powers to invest trust assets. A solution to the problem of authorised trustee status is proposed. The solution takes two parts: the first is the adoption of the prudent person approach but with the codification of duties of the trustee and the explicit listing of the factors that a trustee should consider in using the investment powers. The second part of the proposed solution is to link the investment powers of trustees to the best practice features of securities advisers who are now licensed by a regulatory body, the Australian Securities and Investment Commission.

Prejudice against female children: Economics and cultural explanations, and India evidence

Shows how economic theories based on parental self-interest may explain parental discrimination against daughters relative to sons. However, such theories often need to be adjusted (or even discarded) to allow for altruism of parents towards their children, and to take account of cultural influences on parental desires to have children of particular gender, and care equally for their children of different gender. The latter point is illustrated by a study of two different communities. In one situated in the Santal tribal belt I West Bengal, discrimination against daughters is found to be marked and accords (given the structure of society) with predictions of economic theories based on the pursuit of parental self-interest. By contrast, it is found that although the Knondh-dominated community in Orissa experiences similar economic conditions and social structures to the West Bengal communities, parental discrimination against daughters is almost absent. The differences seem to arise from a difference between the cultural values shared by the Kondhs in Orissa and those shared by the West Bengal community consisting of Santals and Bengali Hindus. This suggests that the applicability of economic theories of the family depends significantly on the social contexts in which they are to be applied. In this respect, both social structures and cultural values are important.