7RP-RELPDQGWKH%RVVD1RYD(UD$XWKRUV6X]HO$QD5HLO\6RXUFH3RSXODU0XVLF9RO1R-DQSS3XEOLVKHGE\Cambridge University Press6WDEOH85/http://www.jstor.org/stable/931201 .$FFHVVHG

Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at .http://www.jstor.org/page/info/about/policies/terms.jsp

.JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range ofcontent in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new formsof scholarship. For more information about JSTOR, please contact support@jstor.org.

.

Cambridge University Press is collaborating with JSTOR to digitize, preserve and extend access to PopularMusic.

http://www.jstor.org

This content downloaded from 143.117.16.36 on Fri, 13 Sep 2013 09:36:49 AMAll use subject to JSTOR Terms and Conditions

3RSXODU0XVLF9ROXPH&RS\ULJKW" &DPEULGJH8QLYHUVLW\3UHVV

7RP-RELPDQGWKH%RVVD1RYD(UD

68=(/ $1$ 5(,/

6X]HO$QD5HLO\

IRUW\/3VDQG&'V +LVODVW&'$QWQLR%UDVLOHLURZDVUHOHDVHGLQ1RYHPEHURIDQGZLWKLQWKUHHZHHNVLWKDGVROGFRSLHV$QRQES

7RPDOVRFRPSRVHGWKHVRXQGWUDFNIRUWKHILOP*DEULHOD5&$EXWORQJEHIRUHWKDWKHKDGFRQWULEXWHGPRVWRIWKHWXQHVLQWKHPXVLFDO%ODFN2USKHXVPDGHLQWRDILOPE\0DUFHO&DPXVLQ+LVUHSHUWRLUHDOVRLQFOXGHVLQFXUVLRQVLQWRVHULRXVPXVLF+HFRPSRVHGVHYHUDOSRSXODUV\PSKRQLHVDQGWRQHSRHPVLQFOXGLQJWKH6\PSKRQ\RI5LRGH-DQHLURZLK%LOO\%ODQFR&RQWLQHQWDODQG

%UDVLOLD&%6ZKLFKUHFHLYHGLWVSUHPLHUDWWKHLQDXJXUDOFHUHPRQ\RIWKHQHZFDSLWDO,WLVQRZRQGHUWKDWKHKDVEHHQVHHQDV%UD]LOV*HRUJH*HUVKZLQ1RWKLQJFDQLOOXVWUDWH7RP-RELPVSODFHLQ%UD]LOLDQSRSXODUPXVLFPRUHDSSRVLWHO\WKDQWKHWULEXWHSDLGKLPE\0DQJXHLUD6DPED6FKRROKHZDVWKHLUWKHPHLQ)ORDWVUHSUHVHQWLQJKLVPXVLFDOFDUHHUSDVVHGSURXGO\GRZQWKHVDPEDGURPHHPEUDFHGE\WKHHOHFWULI\LQJEHDWVRIWKHSHUFXVVLRQHQVHPEOH

:KHQRQ'HFHPEHUQHZVUHDFKHG%UD]LOWKDW7RPKDGGLHGLQ1HZ

7RP-RELPDQGWKH%RVVD1RYD(UD

L

-J

LRUO

""

9L9= L

LOLOLLLL

$QWRQLR&DUORV-RELP3KRWRE\0D[-RQHV)LOHVJ 5(')(516

This content downloaded from 143.117.16.36 on Fri, 13 Sep 2013 09:36:49 AMAll use subject to JSTOR Terms and Conditions

6X]HO$QD5HLO\

&KHGLDNQGD9ROS,WFDXJKWRQDQGWKHUHDIWHULWFDPHWRGHVLJQDWHDGLVWLQFWPXVLFDOVW\OHDQGLWVIRUPHUXVDJHIDGHGLQWRREOLYLRQ

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

$OWKRXJK2II.H\PD\KDYHDFTXLUHGPDQLIHVWRVWDWXVLWLVQRWFRQVLGHUHGWKHILUVWWUXHERVVDQRYDWRKDYHEHHQUHFRUGHG7KLVSODFHRIKRQRXULVJHQHUDOO\DWWULEXWHGWRDQRWKHURI-RELPVFRPSRVLWLRQV&KHJD GH6DXGDGH 1R 0RUH/RQJLQJZLWKO\ULFVE\9LQLFLXVGH0RUDHVZKLFKKDGEHHQUHOHDVHGDIHZPRQWKVHDUOLHUE\-RGR*LOEHUWR2GHRQ $OWKRXJKSUHFXUVRUVWRERVVD QRYDSURSHUGLGH[LVWSRVVLEO\DVHDUO\DVQRQHFRPELQHGDOOWKHIHDWXUHVWKDWFDPHWRFKDUDFWHULVHWKHVW\OHDVSDUDGLJPDWLFDOO\DVWKH\ZHUHUHSUHVHQWHGLQ

&KHJDGH6DXGDGH 7KLVVRQJZDVWKHILUVWUHFRUGLQJWRXQLWHWKHWKUHHKHDY\ZHLJKWVRIWKHPRYHPHQW7RP9LQLFLXVDQG-RGRHSLWRPLVLQJWKHLULQGLYLGXDOFRQWULEXWLRQV7KHPHORG\LVIDUPRUHV\QFRSDWHGWKDQRWKHUIRUPVRI%UD]LOLDQSRSXODUPXVLFDQGLWKDVWKHFKDUDFWHULVWLFERVVDQRYDPRGDOIHHOLQJWKHFRQVWDQWPRGXODWLRQVDQGVXUSULVLQJLQWHUYDOVDUHVHWDJDLQVWDOWHUHGDQGFRPSDFWFKRUGV7KHVHDUHDOOIHDWXUHVDWWULEXWHGWR7RPVFRPSRVLWLRQDOSURFHGXUHVZKLFKERWKGUHZXSRQDQGH[WHQGHGWKHSUDFWLFHVFXUUHQWLQSRSXODUPXVLFDWWKHWLPH

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

-RKR*LOEHUWVQDVDOVSHHFKOLNHYRFDOVW\OHTXLHWDQGWLPLGZDVLGHDOO\VXLWHGWRWKHERVVDQRYDDHVWKHWLFVHQKDQFLQJWKHWLPEUHOFUDIWZRUNRI9LQLFLXVVO\ULFV

This content downloaded from 143.117.16.36 on Fri, 13 Sep 2013 09:36:49 AMAll use subject to JSTOR Terms and Conditions

7RP-RELPDQGWKH%RVVD1RYD(UD

)LQJHUV

7KXPE)LJXUH-RGR*LOEHUWRV6WXWWHULQJ*XLWDU7HFKQLTXH

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

-RGR*LOEHUWRVUHFRUGLQJRI&KHJDGH6DXGDGH ZDVWKHILUVWWRXQLWHDQGFRGLI\WKHODQJXDJHWKDWPDUNHGWKHQHZPRYHPHQW$V7RP-RELPVRVXFFLQFWO\SXWLW%RVVDQRYDLVVHUHQHLWLVORYHDQGURPDQFHEXWLWLVUHVWOHVVTXRWHGLQ0F*RZDQDQG3HVVDQKDS

5LRLQWKHV%UD]LOLDQPXVLFRORJLVWVKDYHRIWHQGHVFULEHGWKHVDVDQHUDLQZKLFKSRSXODUPXVLFHQWHUHGDYDFXXPFI7LQKRUGRRQO\UHJDLQLQJGLUHFWLRQWRZDUGVWKHHQGRIWKHGHFDGHZKHQERVVDQRYDPDGHLWVGHEXW7RVRPHH[WHQWWKLVLVWUXHDVQRGLVFHUQLEOHJHQUHH[LVWVZKLFKEULGJHVWKHJDSEHWZHHQVDPEDFDQJGRDQGERVVDQRYD

6X]HO$QD5HLO\

EHDFKHVDQGURPDQFHVHFXUHLQWKHLUEHOLHIWKDW%UD]LOZDVILQDOO\WDNLQJLWVSODFHRQWKHLQWHUQDWLRQDOVFHQH7KHFRPELQDWLRQRIGUDPDWLFVRFLDOFKDQJHDQGWKHSUHYDLOLQJRSWLPLVPRIWKHHUDFUHDWHGQHZDHVWKHWLFYDOXHVIRUZKLFKWKHUHZHUHQRLPPHGLDWHQDWLRQDOPRGHOVWKHVHDUFKZDVRQWRILOOWKLVYDFXXP

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

7KHVSLULWRIWKHVDOVRDIIHFWHGWKHDHVWKHWLFYDOXHVRI5LRVPLGGOHFODVV\RXWKV7KH\ZHUHVHDUFKLQJIRUDPXVLFDOVW\OHWKDWVXLWHGWKHLUVHOILPDJHLWKDGWREHVLPXOWDQHRXVO\%UD]LOLDQDQGQRQH[RWLFLWKDGWREHDEOHWRVSHDNRIJXLWDUVDQGWDPERXULQHVDVZHOODV5ROOLIOH[FDPHUDV,QGHHGSULRUWRKLVGHSDUWXUHWRWKHKLVWRULFERVVDQRYDFRQFHUWDW&DUQHJLH+DOOLQ7RP-RELPPDGHWKLVVWDWHPHQWWRDMRXUQDOLVWRI2*ORERDPDMRUQHZVSDSHULQ5LR:HDUHQRWJRLQJWRVHOO>%UD]LOV@H[RWLFVLGHRIFRIIHHDQGFDUQLYDO:HDUHQRWJRLQJWRZKHHORXWWKHW\SLFDOWKHPHVRIXQGHUGHYHORSPHQW:HDUHJRLQJWRSDVVIURPWKHDJULFXOWXUDOWRWKHLQGXVWULDOHUD:HDUHJRLQJWRXVHRXUSRSXODUPXVLFZLWKWKHFRQYLFWLRQWKDWLWGRHVQRWRQO\KDYHLWVRZQFKDUDFWHUEXWDOVRDKLJKWHFKQLFDOOHYHOTXRWHGLQ7LQKRUGRS

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

7KHPHHWLQJRIPLQGV

([SHULPHQWDWLRQZDVDWWKHKHDUWRIWKHLQIRUPDOPXVLFPDNLQJWKDWXQLWHGDJURXSRI\RXQJSHRSOH OLYLQJLQWKHH[FOXVLYHQHLJKERXUKRRGVRI&RSDFDEDQD DQG

This content downloaded from 143.117.16.36 on Fri, 13 Sep 2013 09:36:49 AMAll use subject to JSTOR Terms and Conditions

7RP-RELPDQGWKH%RVVD1RYD(UD

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

:KLOHWKHSURIHVVLRQDOVZHUHPRYLQJLQWRVWXGLRVWKHDPDWHXUVEHJDQRUJDQLVLQJVKRZVPRVWO\WKURXJKVWXGHQWDVVRFLDWLRQV$IHZVPDOOFOXEVLQ&RSDFDEDQDV %HFRGDV *DUUDIDV%RWWOHV&RXUWEHJDQVSHFLDOLVLQJLQERVVDQRYDDQGWKLVDOVRSURYLGHGSHUIRUPDQFHVSDFHIRUWKHPRYHPHQWVH[SRQHQWVERWKSURIHVVLRQDOVDQGDPDWHXUV&DUORV/\UDDQG5REHUWR0HQHVFDOVHWXSDJXLWDUDFDGHP\ZKLFKSOD\HGDQLPSRUWDQWUROHLQSURSDJDWLQJWKHQHZUHSHUWRLUHSUHSDULQJPXVLFLDQVWRFRQIURQWWKHGHPDQGVERVVDQRYDZRXOGUHTXLUHRIWKHP7KHIRONGLVWLQFWLRQEHWZHHQSURIHVVLRQDOVDQG DPDWHXUVZKLFKSUHYDLOHGLQERVVDQRYDFLUFOHVZDVYHU\WHQXRXVSDUWLFXODUO\RQFHWKHVKRZFLUFXLWEHFDPHDPDMRUPHFKDQLVPIRUGLYXOJLQJWKHQHZVW\OH7KHSURIHVVLRQDOVZHUHHDJHUWRMRLQXSZLWKWKHDPDWHXUVIRUWKHVHHYHQWVDVDPHDQVRIERRVWLQJWKHLUUHFRUGVDOHV/LNHZLVHWKHDPDWHXUVFDSLWDOLVHGRQWKHRSSRUWXQLW\WKLVJDYHWKHPRIEHFRPLQJDVVRFLDWHGZLWKWKHKHDY\ZHLJKWV6HYHUDORIWKHPDFTXLUHGUHFRJQLWLRQIRUWKHLUPXVLFDODELOLWLHVEHFRPLQJPDMRUSHUIRUPHUVLQWKHLURZQULJKW,QGHHGDQXPEHURIWKHPSDUWLFLSDWHGLQWKH&DUQHJLH+DOOHYHQWLQFOXGLQJ&DUORV/\UD5REHUWR0HQHVFDOWKH&DVWUR1HYHV4XDUWHW&KLFR)HLWRVDDQGRWKHUV7KHPRVWVXFFHVVIXODPDWHXUZDV&DUORV/\UDZKRZRXOGODWHUOHDGERVVDQRYDLQWRLWVSROLWLFLVHGSKDVH

,WZDVWKURXJK5LRVQLJKWFOXEFLUFXLWWKDWWKHWKUHHPRVWRXWVWDQGLQJQDPHVRIERVVDQRYDFKDQFHGXSRQRQHDQRWKHU7KHILUVWOHJHQGDU\HQFRXQWHUEHWZHHQ9LQLFLXVGH0RUDHVDQG$QWLQLR&DUORV-RELPWRRNSODFHLQLQDEDULQFHQWUDO5LRFDOOHG9LODULQR$OOHJHGO\9LQLFLXVZDVWKHUHZLWKWKHPXVLFFULWLF/XFLR5DQJHODQG9LQLFLXVH[SODLQHGKRZKHKDGZULWWHQDPXVLFDOEXWZDVXQDEOHWRVWDJHLW

This content downloaded from 143.117.16.36 on Fri, 13 Sep 2013 09:36:49 AMAll use subject to JSTOR Terms and Conditions

6X]HO$QD5HLO\

ZLWKRXWVRPHRQHWRSXWPXVLFWRKLVO\ULFV+HKDGLQYLWHG9DGLFR1RHO5RVDVIRUPHUSDUWQHUEXWKHZDVWRRLOODWWKHWLPH5DQJHOVDLGKHNQHZMXVWWKHSHUVRQLWZDV7RP-RELPZKRKDSSHQHGWREHLQWKHVDPHEDUDWWKHWLPH7KH\EHJDQZRUNLQJWRJHWKHUWKHYHU\QH[WGD\DQGVORZO\WKHVRQJVIRU2UIHXGD&RQFHLaLREHJDQWRWDNHVKDSH7KHSOD\ZDVDWUHPHQGRXVVXFFHVVDQGLQLWEHFDPHWKHILOP%ODFN2USKHXV7RFRPSO\ZLWKWKHUHTXLUHPHQWVRIWKH)UHQFKSURGXFHUVZKRZDQWHGWRJXDUDQWHHWKHFRS\ULJKWVDVHULHVRIQHZVRQJVZHUHFRPPLVVLRQHG7KDWLVZKHQWKH%UD]LOOLDQUHSHUWRLUHZDVJUDFHGZLWKWKHXQIRUJHWWDEOHWXQHV$)HOLFLGDGHDQG0DQKDGH&DUQDYDO7KHSDUWQHUVKLS7RP-RELP9LQLFLXVGH0RUDHVJHQHUDWHGDQXPEHURIFODVVLFVLQFOXGLQJ7KH*LUOIURP,SDQHPD

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

This content downloaded from 143.117.16.36 on Fri, 13 Sep 2013 09:36:49 AMAll use subject to JSTOR Terms and Conditions

7RP-RELPDQGWKH%RVVD1RYD(UD

GXFHDVRSKLVWLFDWHGVRXQGWKDWZDVVLPXOWDQHRXVO\%UD]LOLDQZLWKRXWUHVRUWLQJWRWKHH[RWLF

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

7RP-RELPZDVERUQLQLQWKHQRUWKRI5LRWKHVRQRIDGLSORPDWDQGDPDWHXUSRHW+HZDVRQO\D\HDUROGZKHQKLVIDPLO\PRYHGWRWKHIDVKLRQDEOHQHLJKERXUKRRGRI,SDQHPDZKHUHKHJUHZXS:KHQKLVIDWKHUGLHGKHZDVHLJKW\HDUVROGDQGKLVPRWKHUUHPDUULHGDJHQWOHPDQZKRZDVV\PSDWKHWLFWRZDUGVKLVVWHSVRQVPXVLFDOLQFOLQDWLRQV7RPVJUDQGPRWKHUSOD\HGSLDQRDQGKHKDGWZRXQFOHVZKRZHUHDFFRPSOLVKHGJXLWDULVWVRQHSOD\HGLQSRSXODUVW\OHVWKHRWKHUFODVVLFDOJXLWDUZLWKDVSHFLDOOLNLQJIRU%DFK+LVHDUO\LQIRUPDOWUDLQLQJZDVDFTXLUHGWKURXJKKLVXQFOHVDQGE\WKHWLPHKLVIDPLO\ERXJKWDJUDQGSLDQRZKHQKHZDVWKLUWHHQKHDOUHDG\SOD\HGWKHJXLWDUDQGWKHKDUPRQLFD

This content downloaded from 143.117.16.36 on Fri, 13 Sep 2013 09:36:49 AMAll use subject to JSTOR Terms and Conditions

6X]HO$QD5HLO\

7KHSLDQRZDVRULJLQDOO\LQWHQGHGIRUKLVVLVWHU+HOHQDEXWVKHVKRZHGQRWHQGHQF\WRZDUGPXVLFDQGKHUOHVVRQVZHQWWR7RP+LVILUVWSLDQRWHDFKHUZDV+DQV-RDFKLP.RHOOUHXWHUD*HUPDQPXVLFRORJLVWZKRKDGIOHG1D]L*HUPDQ\LQ$FRQWURYHUVLDOILJXUH.RHOOUHXWHUZDVKLJKO\LQIOXHQWLDOLQWKH%UD]LOLDQVHULRXVPXVLFZRUOGKHWUDLQHGPDQ\RIWKHFRXQWU\VEHVWNQRZQFRQWHPSRUDU\FRPSRVHUVVXFKDV&ODXGLR6DQWRURDQG*XHUUD3HL[HKHLQWURGXFHG%UD]LOLDQPXVLFLDQVWR+LQGHPLWKDQG6FKQEHUJVWZHOYHWRQHWHFKQLTXHDQGKHOHGWKH

PGVLFDYLYDPRYHPHQWWKHRQO\RYHUWO\QRQQDWLRQDOLVWPXVLFFLUFOHGXULQJWKHSKDVHRIH[WUHPHQDWLRQDOLVPWKDWPDUNHGWKH9DUJDVHUD

,WZDVWKURXJK.RHOOUHXWHUWKDW7RP-RELPILUVWHQFRXQWHUHG&KRSLQDQGWKH,PSUHVVLRQLVWVZKRPKHFRQVLGHUHGPDMRULQIOXHQFHVXSRQKLVPXVLF,QGHHGKHFODLPHGWKDW7KH2QH1RWH6DPEDZDV LQVSLUHGE\&KRSLQV 3UHOXGHLQ'E$QRQFSEXWWKHDIILQLW\EHWZHHQDQRWKHURI&KRSLQV3UHOXGHVWKH

3UHOXGHLQ(0LQRU DQGRQHRIKLVZHOONQRZQVRQJV ,QVHQVDWH]+RZ,QVHQVLWLYHLVIDUPRUHHYLGHQW/DWHU-RELPVWXGLHGZLWK7RPDV7HULQD6SDQLVKSLDQLVWZKRP9LOOD/RERVKDGEURXJKWWR%UD]LOLQWRWHDFKWKHQHZJHQHUDWLRQRI%UD]LOLDQSLDQLVWVEHFDXVHWKHFRPSRVHUFRQVLGHUHGKLPRQHRIWKHEHVWLQWHUSUHWHUVRIKLVPXVLF9LOOD/RERVKDGDQHVSHFLDOO\VWURQJLPSDFWXSRQ7RPDVKHSURYLGHGDIRUPXODIRUFUHDWLQJGLVWLQFWO\%UD]LOLDQVRXQGLQJPXVLFXVLQJ(XURSHDQFRPSRVLWLRQDOSURFHGXUHVFI&KHGLDNQGE9ROSS

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

This content downloaded from 143.117.16.36 on Fri, 13 Sep 2013 09:36:49 AMAll use subject to JSTOR Terms and Conditions

7RP-RELPDQGWKH%RVVD1RYD(UD

DOOXVLRQWKHOLVWHQHUFDQPHQWDOO\UHFRQVWUXFWWKHVRQJVFKRUGDODFFRPSDQLPHQWHYHQLQLWVDEVHQFHFI5RFKD%ULWRS

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

1HZWRQ0HQGRQJDDFKLOGKRRGIULHQGDQGHDUO\SDUWQHURI7RP-RELPVSURGXFHGVRPHRIWKHPRVWLQJHQLRXVO\ULFVLQWKHERVVDQRYDUHSHUWRLUHKHLVUHVSRQVLEOHIRUERWK7KH2QH1RWH6DPEDDQG2II.H\7KHVHVRQJVDUHPHWDOLQJXLVWLFDOO\FRQVWUXFWHGVXFKWKDWWKHLUWH[WVDUHWKHPVHOYHVWKHPDWLFDOO\EDVHGRQZKDWLVKDSSHQLQJLQWKHPXVLF1HZWRQVPLPHWLFWHFKQLTXHZDVDOVRXVHG

This content downloaded from 143.117.16.36 on Fri, 13 Sep 2013 09:36:49 AMAll use subject to JSTOR Terms and Conditions

6X]HO$QD5HLO\

E\&DUORV/\UDLQKLVVRQJ$,QIOXHQFLDGR-D]]7KH,QIOXHQFHRI-D]]ZKLFKSDURGLHGWKHH[FHVVLYHLQWUXVLRQRI1RUWK$PHULFDQMD]] WHFKQLTXHVLQ%UD]LOLDQPXVLFE\H[DJJHUDWLQJWKHLUSUHVHQFHLQWKHSLHFHLWVHOI&RPSRVLWLRQVVXFKDVWKHVHZKLFKDUHDEOHWRFRQFHSWXDOLVH>ZLWKLQWKHPVHOYHV@WKHWKHRU\DQGSUDFWLFHRIERVVDQRYD 6DQW$QQDSDVDPRYHPHQWLQGLFDWHWKHGHJUHHRIVHOIFRQVFLRXVQHVVRSHUDWLQJDPRQJWKHPXVLFLDQVRIWKHHUD

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

7KHILUVWSDWWHUQLVLQWURGXFHGZLWKDVKRUWYRFDOLQWURGXFWLRQDQGLWFRQWLQXHVZLWKRQO\PLQRUDOWHUDWLRQVXQWLOWKHPDLQWKHPHFRPHVXSDJDLQDWWKH

9RLFH

*XLWDU,

9RLFH

*XLWDU,

*XLWDU,,

*XLWDU,,,

)LJXUH-RGR*LOEHUWRVUK\WKPLFSDWWHUQIRU7KH*LUOIURP,SDQHPD

This content downloaded from 143.117.16.36 on Fri, 13 Sep 2013 09:36:49 AMAll use subject to JSTOR Terms and Conditions

7RP-RELPDQGWKH%RVVD1RYD(UD

6WLFN

%UXVK

)LJXUH%RVVDQRYDSHUFXVVLRQDFFRPSDQLPHQW

HQGRIWKHILUVWYHUVHZKHUHKHVKLIWVWRDQRWKHUSDWWHUQZKLFKFUHDWHVDQHZVHWRIGLVSODFHPHQWV7KLVSDWWHUQUHPDLQVZKLOH$VWUXG*LOEHUWRVLQJVWKURXJKWKHPDLQWKHPHIRUWKHILUVWWLPHEXWZKHQVKHLVDERXWWREHJLQWKHUHSHWLWLRQKHVKLIWVWRKLVFODVVLFSDWWHUQUHWXUQLQJWRWKHVHFRQGSDWWHUQZKHQWKHPDLQWKHPHUHHPHUJHVDWWKHHQGRIKHUSHUIRUPDQFH7KLVSDWWHUQLVWKHQVXVWDLQHGWKURXJKRXW6WDQ*HW]VVRORVLQFHLWVJUHDWHUGHQVLW\LVEHWWHUVXLWHGWRFRXQWHUEDODQFHWKHYROXPHRIWKHVD[RSKRQHVHH)LJXUH

7KLVSRO\UK\WKPLFHIIHFWLVIXUWKHUHQKDQFHGE\WKHSDWWHUQVRIWHQXVHGLQWKHSHUFXVVLRQDFFRPSDQLPHQWRIERVVDQRYDLQZKLFKDEUXVKLVVFUDSHGDFURVVWKHKHDGRIDVQDUHGUXPLQFRQWLQXRXVVHPLTXDYHUVZKLOHWKHVWLFNEHDWVRXWDV\QFRSDWHGUK\WKPRQWKHULPRIWKHGUXPVHH)LJXUH

-RLR*LOEHUWRLVWKHPRVWHQLJPDWLFRIERVVDQRYDVSULQFLSOHFUHDWRUV+HKDVQRWEHHQNHHQRQEHLQJLQWHUYLHZHGDQGDOPRVWHYHU\WKLQJWKDWLVNQRZQDERXWKLPFRPHVIURPVHFRQGDU\VRXUFHVSDUWLFXODUO\WKHFROOHFWLRQRILQWHUYLHZVZLWKERVVDQRYDH[SRQHQWVFRQGXFWHGE\-RVH=X]D +RPHPGH0HOOR:KLOH7RPDQG9LQLFLXVKDGVROLGHUXGLWHDFDGHPLFEDFNJURXQGV-RGREURXJKWKLVVK\QHVVDQG SHUIHFWLRQLVPWRWKHVFHQHDOPRVWSHUVRQLI\LQJWKHVW\OHLWVHOI

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

%RVVDQRYDDQG03%%\WKHHDUO\VWKHERVVDQRYDFUD]HGRPLQDWHGWKH%UD]LOLDQSRSXODUPXVLFVFHQHDQGHYHU\RQHZDVSOD\LQJDQGVLQJLQJLQWKHVDPHZD\6XFKPDVVLILFDWLRQOHGWRRYHUNLOODQGERUHGRP0RUHRYHUWKHPRRGRIWKHFRXQWU\KDGFKDQJHG

This content downloaded from 143.117.16.36 on Fri, 13 Sep 2013 09:36:49 AMAll use subject to JSTOR Terms and Conditions

6X]HO$QD5HLO\

GUDPDWLFDOO\7KHRSWLPLVPRIWKHVKDGJLYHQZD\WRDPRUHUHDOLVWLFSHUFHSWLRQRIWKHFRXQWU\VSUHGLFDPHQW.XELWVFKHNVGHYHORSPHQWSURJUDPPHSDUWLFXODUO\WKHEXLOGLQJRI%UDVLOLDZRXOGKDYHWREHSDLGIRUDQGLQIODWLRQZDVULVLQJ%\LWKDGUHDFKHGWKHDOOWLPHKLJKRID\HDUOHJLWLPDWLQJWKHPLOLWDU\FRXSZKLFKGHSRVHG WKHOHIWOHDQLQJSUHVLGHQW-RGR*RXODUW6WXGHQWRUJDQLVDWLRQVZHUHEHFRPLQJSROLWLFLVHGDQG WKHFDUHIUHHDOLHQDWHGFRQWHQWRIERVVDQRYDQRORQJHUUHIOHFWHGWKHLUSULPDU\FRQFHUQV7RVXVWDLQWKHLQWHUHVWRIWKHLUDXGLHQFHVPXVLFLDQVZRXOGKDYHWRILQGDQHZUHFLSH

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

:KHQ9LQLFLXVGH0RUDHVGLHGLQ0RQWHQHJUR6WUHHWZKLFKRQFHKRXVHGWKH9HORVREDUEHFDPH9LQLFLXVGH0RUDHV6WUHHW)URPQRZRQLWZLOOLQWHUVHFWZLWK7RP-RELP$YHQXHZKLFKUXQVWKHOHQJWKRI,SDQHPD%HDFK&RXOGWKHUHEHDPRUHDSSURSULDWHUHFRJQLWLRQRIWKHFKDQFHHQFRXQWHURIWKHVHWZRPXVLFLDQVZKRFKDQJHGWKHIDFHRI%UD]LOLDQSRSXODUPXVLFIRUHYHU"

This content downloaded from 143.117.16.36 on Fri, 13 Sep 2013 09:36:49 AMAll use subject to JSTOR Terms and Conditions

7RP-RELPDQGWKH%RVVD1RYD(UD

(QGQRWHV7KHDOEXPUHFHLYHGQROHVVWKDQVL[*UDPP\

DZDUGV DQG VROG RYHUD PLOOLRQFRSLHV GH6RX]D S

7KHWLWOHRI-RGR*LOEHUWRVVHFRQG/3UHOHDVHGLQZDV2$PRUR6RUULVRHD)ORU/RYH6PLOHDQG)ORZHU

,Q%UD]LOVRPHZHOONQRZQILJXUHVVXFKDV7RP-RELPDUHSRSXODUO\UHIHUUHGWRE\WKHLUILUVWQDPHV,VKDOOXVHWKLVSHUVRQDOLVHGPRGHRIH[SUHVVLRQWKURXJKRXWWKLVDUWLFOH

7KHUH DUH RI KLV EHVW NQRZQ VRQJVLQFOXGHGLQWKHWKUHHYROXPHVRQJERRNFRPSLOHGE\$OPLU&KHGLDNQGEZKLFKZDVVFUXWLQLVHGE\WKHFRPSRVHUEHIRUHSXEOLFDWLRQDQGVL[RWKHUVDUHLQFOXGHGLQ&KHGLDNVILYHYROXPHFROOHFWLRQRI%RVVD1RYDQGD

7KHILOPZRQWKHJUDQGSUL]HDWWKH&DQQHV)LOP)HVWLYDOLQDVZHOODVWKH2VFDUIRUEHVWIRUHLJQILOP7KHEHVWNQRZQVRQJIURP%ODFN2USKHXV0DQKDGH&DUQDYDOKRZHYHUZDV FRPSRVHGE\/XL]%RQI$DQG$QWQLR0DULDZKLOH7RP-RELPDQG 9LQLFLXVGH0RUDHVZHUHUHVSRQVLEOHIRU$)HOLFLGDGH

/LNHWKHERVVDQRYDVW\OHDQGPXFKRILWVUHSHUWRLUHWKLVDUWLFOHLVWKHSURGXFWRIFROOHFWLYHHIIRUW,DPJUDWHIXOWRDOOWKRVHZKRNLQGO\OHQWPHQHZVSDSHUFOLSSLQJVDQGWKHLUUHFRUGLQJVRIWKHPXVLFRI7RP-RELPDQG RWKHUERVVDQRYDH[SRQHQWVRWKHUSHRSOHFRQWULEXWHGZLWKWKHLUPXVLFDOH[SHUWLVHDQGKHUH,ZRXOGOLNHWRWKDQN0DUWLQ6WRNHVDQG.HYLQ'DZH

%UDVLO5RFKD%ULWRS DUJXHVWKDW

+LQRDR6RO+\PQWRWKH6XQRQHRIWKHPRYHPHQWVLQWKH6\PSKRQ\IRU5LRGH-DQHLURE\7RP-RELPDQG%LOO\%ODQFRFRXOGEHFRQVLGHUHGWKHILUVWERVVDQRYD7$ULNGH6RX]DSS KDV SURYLGHGD GHWDLOHGLQYHQWRU\RIWKHSUHFXUVRUVRIERVVDQRYD

7KH HPERODGDLV D WRQJXHWZLVWLQJQRUWKHDVWHUQVRQJJHQUHZKLFKLVFKDUDFWHULVHGE\PHORGLHVZLWKVPDOOLQWHUYDOVLQUDSLGUK\WKPLF FRQILJXUDWLRQVVWDQ]DUHIUDLQIRUPKXPRURXVWKHPHVDQHPSKDVLVRQWKHVRXQGTXDOLW\RIZRUGVWKURXJKWKHXVHRIDOOLWHUDWLRQDQGRQRPDWRSRHLFHIIHFWV

,QDQHDUOLHUYHUVLRQRI&KHJDGH6DXGDGHKDGEHHQUHOHDVHG,WIHDWXUHG(OL]DEHWK&DUGRVRRQYRFDOVDQG-R$R*LOEHUWRRQWKHJXLWDU+HUHKRZHYHUDIXQGDPHQWDOLQJUHGLHQWRIERVVDQRYDZDVPLVVLQJWKHDSSURSULDWHYRFDOVW\OH

3RVVLEO\WKHRQO\YLVLEOH%UD]LOLDQSRSXODUVW\OHQRWWRKDYHHPHUJHGRXWRIRUJDQLFVRFLDOLQWHUDFWLRQZDV VDPEDH[DOWDGRQDWLRQDOLVWH[DOWDWLRQVDPED7KLVZDV WKHVW\OHEHLQJDFWLYHO\SURPRWHGE\WKHQDWLRQDOO\RZQHGUDGLREURDGFDVWLQJVWDWLRQEXWQRQHWKHOHVVJHQHUDWHGD IHZPDVWHUSLHFHVVXFKDV$U\%DUURVRV$TXDUHODGR%UDVLO,WLVQRGRXEWGLIILFXOWWRLPDJLQHDJURXSRIPXVLFLDQVVLWWLQJZLWKWKHLUEHHUVLQIURQWRIWKHPWU\LQJWRWKLQNXSOLQHVWRJORULI\WKHQDWLRQVPDUFKWRZDUGSURJUHVVZLWKRXWWKHDIIDLUSOXQJLQJLQWRVDUFDVP

7KHDUHDZDV FDOOHG%RWWOHV&RXUWEHFDXVHWKRVHOLYLQJLQWKHVN\VFUDSHUVDERYH WKHFOXEVUHVHQWHGWKHQRLVHRIWKHPLOOLQJFURZGVEHORZ DQG LQ SURWHVWWKH\ZRXOG WKURZERWWOHVGRZQRQWKHP

7KHVHWIRUWKHSOD\ZDVGHVLJQHGE\QRQHRWKHUWKDQ2VFDU1LHPH\HUWKHDUFKLWHFWRI%UDVLOLD

$IWHU7RP-RELPOHIWD IULHQGDQGPXVLFDOSDUWQHURIKLV$OR\VLRGH2OLYHLUDWRRNWKHMREZKLFKXQGRXEWHGO\KHOSHGKLPSHUVXDGHWKH FRPSDQ\WR IROORZWKURXJKZLWKWKHSURMHFW

%HVLGHV&KHJD GH6DXGDGH DQG 2II.H\WKH/3IHDWXUHGWZRVRQJVE\WKHDPDWHXUV&DUORV/\UDDQG5RQDOGR%VFROL/RER%RERDQG6DXGDGH )H]XP6DPED

+H DOVR VWXGLHGXQGHU/FLD%UDQFR3DXOR6LOYD $OFHX %RTXLQKR 5DGDPHV *QDWWDOL/LULR3DQLFDOOLDQG/HR3HUDFFKL&DEUDOQGFS 7KXVKH UHFHLYHGLQVWUXFWLRQIURPVRPHRI%UD]LOVPRVWUHSXWDEOHPXVLFLDQV

2Q 9LOOD/RERVVFRPSRVLWLRQDOSURFHGXUHVVHH%HKDJXHSS

)RUDFRPSUHKHQVLYHOLVWRIKLVRXWSXWVHH0DUFRQGHVSS

/LWWOHLVNQRZQDERXWWKLVSRSXODUSRHWZKRGLHGSUHPDWXUHO\RID KHDUWDWWDFNLQZLWKRXWHYHUNQRZLQJWKHLPSDFWKLVVRQJVZRXOGKDYHRQWKHLQWHUQDWLRQDOPXVLFVFHQH

&KLFR%XDUTXHVKDUHGWKHILUVWSUL]HZLWK*HUDOGR9DQGUHDQG7KHRGH%DUURVZKRSUHVHQWHG'LVSDUDGDZKLFKZDVDOVRLQVSLUHGE\DUXUDOPXVLFDOWUDGLWLRQWKHPRGDGHYLROD

5HIHUHQFHV$QRQD+RPHQDJHPDWHQRGHVHPEDUTXH-RUQDOGR%UDVLO'HFHPEHU&DGHUQR$QRQE9HPDIRYHUER7RPEDU9HMDSS

This content downloaded from 143.117.16.36 on Fri, 13 Sep 2013 09:36:49 AMAll use subject to JSTOR Terms and Conditions

6X]HO$QD5HLO\F7ULVWHHYLYHUVHP-RELP9HMDSS

%HKDJXH*HUDUG%RVVDERVVDVUHFHQWFKDQJHVLQ%UD]LOLDQXUEDQSRSXODUPXVLF(WKQRPXVLFRORJ\SS

0XVLFLQ/DWLQ$PHULFDDQ,QWURGXFWLRQ(QJOHZRRG&OLIIV&DEUDO6HUJLRQGD (PEXVFDGDSHUIHLOGRLQ6RQJERRN%RVVD1RYDYROHG$&KHGLDN5LRGH

-DQHLURSSQGE2MRYHP9LQLFLXVLQ6RQJERRN%RVVD1RYDYROHG$&KHGLDN5LRGH-DQHLURSSQGF7RPUHYROXJ$RFRPEHOH]DLQ6RQJERRN%RVVD1RYDYROHG$&KHGLDN5LRGH-DQHLURSS

&KHGLDN$OPLUQGD 6RQJERRNERVVDQRYDYROXPHV5LRGH-DQHLURQGE6RQJERRN7RP-RELPYROXPHV5LRGH-DQHLUR

+RPHPGH0HOOR-RVH0DVLFDSRSXODUEUDVLOHLUD6DR3DXOR0DFKDGR3DXOR6HUJLR+LVWULDGDPVLFDSRSXODUEUDVLOHLUD7RP-RELPYRO6DR3DXOR

5HFRUGMDFNHW0DUFRQGHV0DUFRV$QWQLRHG (QFLFORSGGLDGDPXVLFDEUDVLOHLUDHUXGLWDIROFOULFDSRSXODU6DR

3DXOR0F*RZDQ&KULVDQG3HVVDQKD5LFDUGR7KH%LOOERDUG%RRNRI%UD]LOLDQ0XVLF/RQGRQ0HGDJOLD-OLR%DODQJRGDERVVDQRYDLQ%DODQSRGDERVVDHRXWUDVERVVDVHG$GH&DPSRV

6DR3DXORSS5RFKD%ULWR%UDVLO%RVVDQRYDLQ%DODQSRGDERVVDHRXWUDVERVVDVHG$GH&DPSRV6DR3DXOR

SSGH6DQW$QQD$IIRQVR5RPDQR0DVLFDSRSXODUHPRGHUQDSRHVLDEUDVLOHLUD3HWUSROLVGH6RX]D7$ULN$ERVVDQRYDHRILQRGDERVVDLQ%UDVLO0XVLFDOHGV7GH6RX]DHWDO5LRGH

-DQHLURSS6FKUHLQHU&ODXV0DVLFD%UDVLOHLUD$+LVWRU\RI3RSXODU0XVLFDQGWKH3HRSOHRI%UD]LO1HZ