Economics Commons^™

Tests Of Transformation In Nonlinear Regression, Zhenlin Yang, Gemai Chen

Research Collection School Of Economics

This paper presents three versions of the Lagrange multiplier (LM) tests of transformation in nonlinear regression: (i) LM test based on expected information, (ii) LM test based on Hessian, and (iii) the LM test based on gradient. All three tests can be easily implemented through a nonlinear least squares procedure. Simulation results show that, in terms of finite sample performance, the LM test based on expected information is the best, followed by the LM test based on Hessian and then the LM test based on gradient. The LM test based on gradient can perform rather poorly. An example is given …

Modular Production Networks In Electronics: The Nexus Between Management And Economics Research, Byron Gangnes, Ari Van Assche

Research Collection School Of Economics

In the last two decades, the electronics industry has evolved from a vertically integrated industry to a vertically segmented one. This transformation has often been attributed to the modularization of electronic products. In this paper, we argue that the degree of modularity is an active choice variable for a firm. As a result, it is necessary to focus on the underlying factors that drive both modularity and the organization of production. This provides insights into the transformation taking place in global electronics production, with vertical fragmentation, horizontal consolidation, and the growth of Asian electronics production.

A Var Analysis Of Singapore's Monetary Transmission Mechanism, Hwee Kwan Chow

Research Collection School Of Economics

The Singapore economy has experienced greater business cycle fluctuations in recent years, being subject to recurrent shocks from the external environment. Given the extreme openness of the economy—Singapore’s export share of GDP is approximately 180%—it is not surprising that the main cause of the increase in economic volatility is a rise in the frequency and magnitude of exogenous shocks. These include the downswing in the global electronics industry in 1996–97, the Asian financial crisis in 1997–98, the burst of the information technology bubble in 2001, and the outbreak of the SARS respiratory disease in 2003. Such a close sequence of …

Future Fiscal And Budgetary Shocks, Hian Teck Hoon, Edmund S. Phelps

Research Collection School Of Economics

We study here the effects of future tax and budgetary shocks on present levels of economic activity and real interest rates in a nonmonetary and possibly non-Ricardian economy. The paper first takes up an (unanticipated) temporary tax cut to be effective on a given future date—a delayed debt bomb. The sudden prospect of this future-dated shock causes at once a drop in the (unit) value placed on the firms’ business asset, the customer, and accordingly on the price of shares—with the result that the hourly wage, hours worked and GDP drop in tandem. This paradox of reduced activity through announcement …

A Database Accountability System For The Michigan Career Preparation System, Kevin Hollenbeck, Jason M. Preuss

Reports

No abstract provided.

New Mexico Labor Market Review 08-31-2004, New Mexico Department Of Labor

Historic Publications

The New Mexico Labor Market Review is a monthly publication presenting statistical data and analysis on labor market conditions throughout New Mexico. Issues examine statewide and regional trends in employment, unemployment, labor force estimates, industry activity, wages, occupational demand, and related economic conditions, often accompanied by feature articles on topics affecting the state’s economy. This issue covers July 2004.

Good Faith In The Cisg: Interpretation Problems In Article 7, Benedict C. Sheehy

ExpressO

ABSTRACT: This article examines the dispute concerning the meaning of Good Faith in the CISG. Although there are good reasons for arguing a more limited interpretation or more limited application of Good Faith, there are also good reasons for a broader approach. Regardless of the correct interpretation, however, practitioners and academics need to have a sense of where the actual jurisprudence is going. This article reviews every published case on Article 7 since its inception and concludes that while there is little to suggest a strong pattern is developing, a guided pattern while incorrect doctrinally is preferable to the current …

On The Misuse Of The Nash Bargaining Solution In Law And Economics, Abraham L. Wickelgren

ExpressO

Bargaining plays a very important role in a great deal of legal scholarship, particularly in law and economics scholarship. Scholars often assume that the Nash bargaining solution determines the bargaining outcome, where the parties equally split the joint benefit created by the agreement. This solution, however, is inappropriate when parties have outside options, alternatives that only provide a payoff if the bargainer terminates the original bargaining. Most legal bargaining problems involve outside options. This article explains why the Nash bargaining solution generates an inappropriate outcome in this situation. Then, it examines several different prior articles that have used the Nash …

Do Patents Facilitate Financing In The Software Industry?, Ronald J. Mann

ExpressO

This paper is the first part of a wide-ranging study of the role of intellectual property in the software industry. Unlike previous papers, which focus primarily on software patents – which generally are held by firms that are not software firms – this paper provides a thorough and contextually grounded description of the role that patents actually play in the software industry itself.

The bulk of the paper considers the pros and cons of patents in the software industry. On the positive side, the paper starts by emphasizing the difficulties that pre-revenue startups face in obtaining any value from patents. …

Fostering Good Corporate Governance, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

I would like to begin by extending my heartfelt felicitations to all those companies who have been chosen to receive the awards on Best Corporate Reporting this evening. I would also like to commend ICAP and ICMAP for instituting these awards, holding public ceremonies to acknowledge the winners and continuing with the tradition for last several years. As you may have heard me say so often that we are very generous at finding faults and putting people and institutions down but very stingy in acknowledging success and appreciating those individuals, firms, institutions which have excelled in their respective fields. If …

Developing Human Resources For The Financial Sector, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

I am extremely pleased to be present here at Faisalabad this evening to launch this joint program of Masters in Banking and Finance Services organized jointly by the Institute of Bankers Pakistan and the University of Faisalabad aimed at up gradation of the skills of banking industry in Pakistan. I would like to commend the University authorities for participating in this endeavour. This is all the more important because there are good institutes which cater to the needs of students in Karachi, Lahore and Islamabad but there are very few quality institutions of higher learning outside these centers. This program …

Expensing Isn't The Only Option: Alternatives To The Fasb's Stock Option Expensing Proposal, Benjamin A. Templin

ExpressO

This paper reviews the arguments for and against the Financial Accounting Standard Board's (FASB) proposal to require that corporations expense options. It identifies two major goals of the proposed rule -- 1) clarity in financial statements and 2) a reduction of corporate fraud by removing the incentive of options. To address these two goals, I adopt a framework of Information Reforms v. Rules of the Game Reforms. The article starts with a history of FASB Statement No. 123 Accounting for Stock-based Compensation and also analyzes the Congressional legislation that attempts to block the measure, the Stock Option Accounting Reform Act. …

Rhode Island Current Conditions Index -- August 2004, Leonard Lardaro

The Rhode Island Current Conditions Index

No abstract provided.

"Competing Conceptions Of Globalization" Revisited: Relocating The Tension Between World-Systems Analysis And Globalization Analysis, Thomas Clayton

Linguistics Faculty Publications

No abstract provided.

Xenophobia And Distribution In France: A Politico-Economic Analysis, John E. Roemer, Karine Van Der Straeten

Cowles Foundation Discussion Papers

Anti-immigrant feeling (xenophobia) among voters has been proposed as a key factor explaining why, in the 2002 French national election, Jean Le Pen’s National Front Party won second place. Here, we study the effect of anti-immigrant sentiments among voters on the equilibrium position of political parties on the economic issue, which we take to be the size of the public sector. We model political competition among three parties (Left, Right, and Extreme Right) on a two-dimensional policy space (public sector size, immigration issue) using the PUNE model. We calibrate the model to French data for the election years 1988 and …

Impartiality And Priority. Part 2: A Characterization With Solidarity, Juan D. Moreno-Ternero, John E. Roemer

Cowles Foundation Discussion Papers

The ethic of ‘priority’ is a compromise between the extremely compensatory ethic of ‘welfare equality’ and the needs-blind ethic of ‘income equality’. We propose an axiom of priority, and characterize resource allocation rules that are impartial, prioritarian, and solidaristic. They comprise a class of rules which equalize across individuals some index of resources and welfare. Consequently, we provide an ethical rationalization for the many applications in which such indices have been used (e.g., the ‘human development index,’ ‘index of primary goods,’ etc.).

Impartiality, Solidarity, And Priority In The Theory Of Justice, Juan D. Moreno-Ternero, John E. Roemer

Cowles Foundation Discussion Papers

The veil of ignorance has been used often as a tool for recommending what justice requires with respect to the distribution of wealth. We show that John Harsanyi’s and Ronald Dworkin’s conceptions of the veil, when modeled formally, recommend wealth allocations in conflict with the prominently espoused view that priority should be given to the worse off with respect to wealth allocation. It follows that those who believe that justice requires impartiality and priority must seek some method of assuring the former other than the veil of ignorance. We propose that impartiality and solidarity are fundamentals of justice, and study …

Impartiality And Priority. Part 1: The Veil Of Ignorance, Juan D. Moreno-Ternero, John E. Roemer

Cowles Foundation Discussion Papers

The veil of ignorance has been used often as a tool for recommending what justice requires with respect to the distribution of wealth. We complete Harsanyi’s model of the veil of ignorance by appending information permitting interpersonal comparability of welfare. We show that the veil-of-ignorance conception of John Harsanyi, so completed, and Ronald Dworkin’s, when modeled formally, recommend wealth allocations in conflict with the prominently espoused view that priority should be given to the worse off with respect to wealth allocation.

Regional Economic Indicators: Business & Innovation Climate, Robert Sadowski

All Maxine Goodman Levin School of Urban Affairs Publications

This report is the first in a series to be released by the Center for Economic Development (Center) at Cleveland State University’s Maxine Goodman Levin College of Urban Affairs as part of its regional economic indicators project. The project’s objective is to provide a comprehensive benchmarking of Greater Cleveland’s economy against other metropolitan areas across the nation. To achieve this objective, the Center is planning to analyze a broad set of economic indicators in several themes to construct a broad-based economic profile of the region. This will allow for an objective determination of areas in which Cleveland and northeast Ohio …

Board Structure, Political Influence And Firm Performance - An Empirical Study On Publicly Listed Firms In China, Dongping Han, Fusheng Wang, Heng Yue

Research Collection School Of Accountancy

The board of directors is the cornerstone of any effective corporate governance system. A well-structured board can effectively monitor and motivate management of a company for the benefit of the company's shareholders. This paper investigates the relationship between board structure and firm performance using a sample of 490 publicly listed firms in China. The characteristics of board structure we examined include: board size, inside/outside/independent directors, CEO/Chair duality, stock holdings of directors, the rewards to directors and aged directors. We find significant relationship between firm performance and three characteristics: the rewards to director, the stock holdings of directors and the existence …

Essays On The Econometrics Of Financial Volatility, Yasemin Bardakci

Dissertations

My dissertation consists of three essays on the econometric analysis of financial volatility.

My first essay is titled "The Runs Test for Volatility Forecastibility: Extensions and Comparisons with Tests for GARCH." Recently, Diebold and Christoffersen (2000) introduced a test for forecastable volatility. In this paper, I compare the size and the power of the runs test and the optimal LM test for GARCH by Monte Carlo simulation. For high frequency returns the LM test has superior power to the runs test. For low frequency returns however, the tests have very similar power. I also propose a switching variance model. For …

Using Administrative Data For Workforce Development Program Evaluation, Kevin Hollenbeck

Upjohn Institute Working Papers

This paper addresses the question of whether administrative data that are collected for performance monitoring purposes can be used for program evaluation. It argues that under certain circumstances, such data can be used. In particular, data from the state of Washington are used to examine the effectiveness of services provided to adults under the Workforce Investment Act (WIA). The general theme of an emerging literature on techniques for nonexperimental evaluations of social programs is that many different techniques have appropriate asymptotic properties. A contribution of this paper is to examine the sensitivity of net impact estimators to various estimation techniques. …

The Politics Of Wto Enforcement Mechanism, Pao Li Chang

Research Collection School Of Economics

This paper attempts to develop a formal economic framework to analyze the influences of domestic political considerations by democratic governments in shaping the WTO enforcement outcomes following a violation ruling against the defendant. Since a different mix of import and export sectors in the defendant and complainant country will benefit from the various potential enforcement outcomes, they become competing forces which steer the strategic interactions between the disputing governments. The results of the paper illustrate the complainant's strategy in selecting the retaliation list, and the likelihood of the defendant's compliance or compensation in response to the proposed or foreseeable retaliation, …

The Optimal Design Of Fallible Organizations: Invariance Of Optimal Decision Criterion And Uniqueness Of Hierarchy And Polyarchy Structures, Winston T. H. Koh

Research Collection School Of Economics

We present a general framework to study the project selection problem in an organization of fallible decision-makers. We show that when the organizational size and the majority rule for project acceptance are optimized simultaneously, the optimal quality of decision-making, as determined by the decision criterion, is invariant, and depends only on the expertise of decision-makers. This result clarifies that the circumstances under which the decision-making quality varies with the organizational structure are situations where the organizational size or majority rule is restricted from reaching the optimal level. Moreover, in contrast to earlier findings in the literature that the hierarchy and …

New Mexico Labor Market Review 07-31-2004, New Mexico Department Of Labor

Historic Publications

The New Mexico Labor Market Review is a monthly publication presenting statistical data and analysis on labor market conditions throughout New Mexico. Issues examine statewide and regional trends in employment, unemployment, labor force estimates, industry activity, wages, occupational demand, and related economic conditions, often accompanied by feature articles on topics affecting the state’s economy. This issue covers June 2004.

“Politics As Markets” Reconsidered: Economic Theory, Competitive Democracy And Primary Ballot Access , David N. Schleicher

ExpressO

No abstract provided.

Vision For Pakistan’S Financial Service Industry, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

I am extremely happy to be present here this evening on the occasion of the signing of the joint venture partnership agreement between BMA Capital and Abraaj Capital. This partnership will raise the capital of the company to a level where it can get into new areas of business. I would like to congratulate the sponsors, management and staff of both these companies on their successful transaction and hope they will use this expanded platform to launch new products and services which will be focus of my remarks this evening.

On Ranking And Selection From Independent Truncated Normal Distributions, William C. Horrace

Economics - All Scholarship

This paper develops probability statements and ranking and selection rules for independent truncated normal populations. An application to a broad class of parametric stochastic frontier models is considered, where interest centers on making probability statements concerning unobserved firm-level technical inefficiency. In particular, probabilistic decision rules allow subsets of firms to be deemed relatively efficient or inefficient at prespecified probabilities. An empirical example is provided.

The New Promised Land: Black-White Convergence In The American South, 1940-2000, Jacob L. Vigdor

University of Kentucky Center for Poverty Research Discussion Paper Series

The black-white earnings gap has historically been larger in the South than in other regions of the United States. This paper shows that this regional gap has closed over time, and in fact reversed during the last decades of the twentieth century. Three proposed explanations for this trend focus on changing patterns of selective migration, reduced discrimination in Southern labor markets, and lower levels of school segregation and school resource disparities in the modern South relative to the North. Evidence suggests that reductions in Southern labor market discrimination explain rapid regional convergence in racial wage gaps between 1960 and 1980. …

Rhode Island Current Conditions Index -- July 2004, Leonard Lardaro

The Rhode Island Current Conditions Index

No abstract provided.