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on Investment |
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Issue of 2024‒07‒22
39 papers chosen by |
| By: | International Monetary Fund |
| Abstract: | Growth decelerated to 1.7 percent in 2023 from 4.2 percent in 2022 but has proven resilient despite ongoing headwinds, such as spillovers from the war in Ukraine and from the economic slowdown in Europe. Inflation has moderated from 17.4 percent in October 2022 to 6 percent, on average, in 2023, but wage pressures linger due to minimum wage increases and emigration. The fiscal balance deteriorated from a surplus of 0.9 percent in 2022 to a deficit of 1.7 percent in 2023, reflecting the accumulated impact of several permanent increases in public wages and social benefits. Progress on structural reforms remains limited, although EU accession talks appear to have sparked some reform ambition. |
| Date: | 2024–06–20 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfscr:2024/175&r= |
| By: | Christian Makaya (Ascencia business school); Diane Lenne |
| Abstract: | In this paper, we focus on the conditions necessary for the development of peer-to-peer learning ecosystems, as knowledge-producing ecosystems. Through the case study of a peer-to-peer learning methodology, the We Are Peers (WAP) method, and its applications in companies, higher education institutions, and organisations, we show that the teacher who implements this type of pedagogical device is part of a learning creation process in line with the ethics and principles of permaculture. The aim of our work is to show that the application of a methodology inspired by permaculture can contribute to the development of new types of learning, practices, and attitudes as part of the development of learning organizations and societies. |
| Abstract: | Dans cet article, nous nous intéressons aux conditions nécessaires au développement des écosystèmes d'apprentissage pair à pair, en tant qu'écosystèmes producteurs de connaissances. À travers l'étude du cas d'une méthodologie d'apprentissage pair à pair, la méthode We Are Peers (WAP), et de ses applications dans des entreprises, institutions d'enseignement supérieur et organisations, nous montrons que l'enseignant qui met en place ce type de dispositif pédagogique s'inscrit dans une démarche de création d'apprentissages en accord avec l'éthique et les principes de la permaculture. Nos travaux visent à montrer que l'application d'une méthodologie inspirée de la permaculture peut contribuer à développer de nouveaux types d'apprentissages, pratiques et postures s'inscrivant dans le développement d'organisations et de sociétés apprenantes. |
| Keywords: | Learning organizations, Learning society, Learning ecosystems, Peer to peer learning, Apprentissages pairs à pairs, Organisations apprenantes, Société apprenante, Permaculture, Ecosystèmes d'apprentissage |
| Date: | 2024–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04624790&r= |
| By: | Yijie Fei (College of Finance and Statistics, Hunan University); Yiu Lim Lui (Institute for Advanced Economic Research, Dongbei University of Finance and Economics); Jun Yu (Department of Finance and Business Economics, Faculty of Business Administration, University of Macau) |
| Abstract: | This paper considers testing predictability in predictive regression models with persistent errors. We derive limiting distributions of the ordinary least squares estimator and the corresponding Wald statistic under the condition of moderately integrated errors or local-to-unity errors. The asymptotic result establishes the connection between super-consistent estimation in correctly specified predictive regression and inconsistent estimation in spurious regression. To provide a robust test, a modification to the IVX-AR test of Yang et al. (2020) is proposed. The modified test is uniformly valid across different degrees of persistency in both predictors and errors. Simulation studies show that the new test enjoys satisfactory finite sample performances. Leveraging on the new test, we reexamine the predictive power of numerous economic variables in predicting the growth rate of the U.S. housing market, demonstrating the usefulness of the proposed test, particularly in the context of multivariate regression. |
| Keywords: | Spurious regression, Predictive regression, Uniform inference; Robust test; Moderately integrated; Nearly integrated, Housing price |
| JEL: | C12 C22 G01 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:boa:wpaper:202401&r= |
| By: | Lisa D. Cook |
| Date: | 2024–06–25 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgsq:98439&r= |
| By: | Scheper, Christian; Engelhardt, Anne |
| Abstract: | Nach jahrelangen Diskussionen hat die Europäische Union (EU) eine Richtlinie zur Regulierung von Menschenrechten und Nachhaltigkeit in globalen Lieferketten beschlossen, die sogenannte Corporate Sustainability Due Diligence Directive (CSDDD). Erstmals verankert sie europaweit verbindliche menschenrechtliche und um- weltbezogene Sorgfaltspflichten für Unternehmen entlang ihrer Lieferketten. Die Richtlinie harmonisiert und erweitert eine Reihe von neuen Sorgfaltspflichtengesetzen in EU-Mitgliedsstaaten, darunter in Frankreich und Deutschland (Lieferkettensorgfaltspflichtengesetz, LkSG). Mit diesem Spotlight wollen wir die neuen Sorgfaltspflichten politisch einordnen: Welche Probleme lösen sie? Und bringen sie auch neue Probleme mit sich? Anhand des größten Arbeitsunfalls in Brasilien, dem Staudammbruch in Brumadinho, verdeutlichen wir einige wesentliche Aspekte der Problematik. Im Fazit betonen wir Herausforderungen und geben Empfehlungen für die Umsetzung. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:sefggs:300082&r= |
| By: | Eric AVENEL (Univ Rennes, CNRS, CREM – UMR6211, F-35000 Rennes France) |
| Abstract: | With the development of e-commerce, upstream firms have the possibility to sell their products on BtoC markets. I explore the consequences of this observation on the analysis of vertical integration and more specifically vertical foreclosure. I consider the same industry structure as in OSS (1990), but I allow the integrated firm to sell the intermediate good either on a BtoB market (as assumed by OSS) and/or on a BtoC market (in which case it is in fact no longer an intermediate good). I also consider the possibility that the competing producer of the intermediate good sells it on a BtoC market. In this enriched strategic framework, the firm has to decide on how to combine vertical foreclosure and tying, which sheds new light on the relation between these two possibly anticompetitive practices. |
| Keywords: | Vertical foreclosure, tying, BtoB, BtoC. |
| JEL: | L41 L42 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:tut:cremwp:2024-03&r= |
| By: | Martin Huber; Kevin Kloiber; Lukas Laffers |
| Abstract: | We propose a test for the identification of causal effects in mediation and dynamic treatment models that is based on two sets of observed variables, namely covariates to be controlled for and suspected instruments, building on the test by Huber and Kueck (2022) for single treatment models. We consider models with a sequential assignment of a treatment and a mediator to assess the direct treatment effect (net of the mediator), the indirect treatment effect (via the mediator), or the joint effect of both treatment and mediator. We establish testable conditions for identifying such effects in observational data. These conditions jointly imply (1) the exogeneity of the treatment and the mediator conditional on covariates and (2) the validity of distinct instruments for the treatment and the mediator, meaning that the instruments do not directly affect the outcome (other than through the treatment or mediator) and are unconfounded given the covariates. Our framework extends to post-treatment sample selection or attrition problems when replacing the mediator by a selection indicator for observing the outcome, enabling joint testing of the selectivity of treatment and attrition. We propose a machine learning-based test to control for covariates in a data-driven manner and analyze its finite sample performance in a simulation study. Additionally, we apply our method to Slovak labor market data and find that our testable implications are not rejected for a sequence of training programs typically considered in dynamic treatment evaluations. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.13826&r= |
| By: | Jochmann-Döll, Andrea; Rabe, Elisa; Specht, Johannes |
| Abstract: | Seit den Anfängen der Europäischen Union zählt der Grundsatz der Entgeltgleichheit zu den wesentlichen Bestandteilen europäischen Rechts: Dass Frauen und Männern für gleiche oder gleichwertige Arbeit gleiches Entgelt zu zahlen ist, wurde bereits in Artikel 119 der Römischen Verträge von 1957 bestimmt. Die Motivation für diese Regelung lag zwar weniger in gleichstellungspolitischem Engagement, sondern in dem Ziel der Verhinderung von Wettbewerbsverzerrungen zwischen den Mitgliedsstaaten durch niedrige Löhne für erwerbstätige Frauen. Dennoch setzte die Europäische Union seit dieser Zeit immer wieder wesentliche Impulse für die Entgeltgleichheit der Geschlechter. Hierzu zählen § 23 der Europäischen Grundrechtecharta, ebenso wie Artikel 157 des Vertrags zur Arbeitsweise der Europäischen Union (AEUV) und die Genderrichtline 2006/54/EU mit ihren Konkretisierungen des Rechtsanspruchs auf Entgeltgleichheit, aber auch eine Vielzahl von Entscheidungen des Europäischen Gerichtshofs sowie Berichte, Empfehlungen und andere Dokumente verschiedener Institutionen der Europäischen Union. Auch die deutschen Rechtsgrundlagen zur Entgeltgleichheit wurden immer wieder von europäischen Impulsen angestoßen und diese haben sowohl tarifliche wie betriebliche Entgeltregelungen als auch die Umsetzung der Entgeltgleichheit in der Praxis beeinflusst. Nun hat das Europäische Parlament einen neuen, kräftigen Anstoß gegeben: Am 29. März 2023 wurde die "Richtline des Europäischen Parlaments und des Rates zur Stärkung der Anwendung des Grundsatzes des gleichen Entgelts für Männer und Frauen bei gleicher oder gleichwertiger Arbeit durch Durchsetzungsmechanismen", die sogenannte Entgelttransparenzrichtlinie, verabschiedet. Die Richtlinie muss innerhalb von drei Jahren in deutsches Recht umgesetzt werden. Daraus ergeben sich notwendige Änderungen am deutschen Entgelttransparenzgesetz (EntgTranspG), die die Möglichkeiten für die Durchsetzung der Entgeltgleichheit in Deutschland wesentlich erweitern und die Rahmenbedingungen für alle Akteur*innen in den Arbeitsbeziehungen - Unternehmen und Arbeitgeberverbände, Betriebsräte und Gewerkschaften - neu aufstellen werden. Wichtige Neuerungen also für die gleichstellungspolitische Arbeit in den Betrieben und Tarifabteilungen von Gewerkschaften. In diesem Artikel werden zuerst die wesentlichen Bestandteile der Richtlinie (1.), dann die daraus notwendigen Änderungen am deutschen Entgelttransparenzgesetz (EntgTranspG) dargestellt (2.). Anschließend diskutieren wir die (neuen) Möglichkeiten, die sich aus der Richtlinie in Betrieben und für die Tarifpolitik ergeben könnten (3.). Ob sie genutzt werden, hängt maßgeblich davon ab, wie Gewerkschaften, Arbeitgeberverbände, Unternehmen und Betriebsräte die Bestimmungen der Richtlinie in die Praxis umsetzen. |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wsieqt:299995&r= |
| By: | Jeremy Clark (University of Canterbury); Abel François; Olivier Gergaud |
| Abstract: | Among the many studied determinants of voting, we predict that i) increased social capital will be positively associated with turnout, while increased heterogeneity will be negatively associated, ii) that both factors will work through their influence on the costs of information gathering and on the social norms of voting; and iii) that heterogeneity will interact with social capital in its association with turnout. We test these predictions at the extremely fine “meshblock” level by regressing New Zealand voter turnout in its 2017 national election on its 2013 census characteristics. We use roughly 40, 000 meshblock volunteering rates to measure social capital, and heterogeneity based primarily on ethnic fragmentation. We find social capital is positively associated with voter turnout, while heterogeneity is negatively associated. We find robust evidence consistent with ethnic heterogeneity working through information costs and social norms, but less so social capital. We also find a robust interaction between social capital and heterogeneity in their association with turnout, consistent with ethnic heterogeneity raising bridging social capital that has a stronger association with turnout than in-group bonding social capital. |
| Keywords: | Electoral turnout, social capital, population diversity, ethnic heterogeneity, volunteering |
| JEL: | D72 D91 H31 |
| Date: | 2024–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:cbt:econwp:24/09&r= |
| By: | Juan De Anton; Juan J Senovilla; Jose M Gonzalez-Varona; Fernando Acebes |
| Abstract: | Production planning in 3D printing factories brings new challenges among which the scheduling of parts to be produced stands out. A main issue is to increase the efficiency of the plant and 3D printers productivity. Planning, scheduling, and nesting in 3D printing are recurrent problems in the search for new techniques to promote the development of this technology. In this work, we address the problem for the suppliers that have to schedule their daily production. This problem is part of the LONJA3D model, a managed 3D printing market where the parts ordered by the customers are reorganized into new batches so that suppliers can optimize their production capacity. In this paper, we propose a method derived from the design of combinatorial auctions to solve the nesting problem in 3D printing. First, we propose the use of a heuristic to create potential manufacturing batches. Then, we compute the expected return for each batch. The selected batch should generate the highest income. Several experiments have been tested to validate the process. This method is a first approach to the planning problem in 3D printing and further research is proposed to improve the procedure |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.02588&r= |
| By: | Hanna M. Schwank (University of Bonn) |
| Abstract: | Natural disasters are growing in frequency globally. Understanding how vulnerable populations respond to these disasters is essential for effective policy response. This paper explores the short- and long-run consequences of the 1906 San Francisco Fire, one of the largest urban fires in American history. Using linked Census records, I follow residents of San Francisco and their children from 1900 to 1940. Historical records suggest that exogenous factors such as wind and the availability of water determined where the fire stopped. I implement a spatial regression discontinuity design across the boundary of the razed area to identify the effect of the fire on those who lost their home to it. I find that in the short run, the fire displaced affected residents, forced them into lower paying occupations and out of entrepreneurship. Experiencing the disaster disrupted children’s school attendance and led to an average loss of six months of education. While most effects attenuated over time, the negative effect on business ownership persists even in 1940, 34 years after the fire. Therefore, my findings reject the hope for a “reversal of fortune” for the victims, in contrast to what is found for more recent natural disasters such as hurricane Katrina. |
| Keywords: | Natural disasters, internal migration, economic history, regional and urban economics |
| JEL: | N91 N31 Q54 O15 J61 J62 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:ajk:ajkdps:312&r= |
| By: | Manchala, Ravibabu; Sahu, Sasmita |
| Abstract: | The paper gives an outline of the evolution of Indian transport sector before and after the Indian independence in 1947 and the policies followed by different governments in these modes since 1947. First the paper traces the status of various modes in 1947 and the role British rule played in evolution of these modes. The discussion then traces important policies followed in various modes in the country since 1947 and how they shaped the growth of each mode of transport. The paper brings out the efforts made in implementing an integrated transport policy across the country. It also highlights the failure in implementing an integrated transport policy by giving major areas of failure. Finally, the paper concludes by giving the broad contours of the future policy directions stating that in the Indian context instead of a tightly integrated transport policy it would be better to provide a level playing field across all the modes and enable the modes to develop in the marketplace. |
| Keywords: | India’s national transport Policy; Historical development of transport infrastructure in India; Transport planning in India |
| JEL: | R48 |
| Date: | 2023–06–08 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121158&r= |
| By: | Jose M. Betancourt (Yale University); Ali Horta su (University of Chicago); Aniko …ry (Carnegie Mellon University); Kevin R. Williams (Yale University) |
| Abstract: | We study dynamic price competition between sellers offering differentiated products with limited capacity and a common sales deadline. In every period, firms simultaneously set prices, and a randomly arriving buyer decides whether to purchase a product or leave the market. Given remaining capacities, firms trade off selling today against shifting demand to competitors to obtain future market power. We provide conditions for the existence and uniqueness of pure-strategy Markov perfect equilibria. In the continuous-time limit, prices solve a system of ordinary differential equations. We derive properties of equilibrium dynamics and show that prices increase the most when the product with the lowest remaining capacity sells. Because firms do not fully internalize the social option value of future sales, equilibrium prices can be inefficiently low such that both firms and consumers would benefit if firms could commit to higher prices. We term this new welfare effect the Bertrand scarcity trap. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:cwl:cwldpp:2394&r= |
| By: | Clark, Andrew E. (Paris School of Economics); Lepinteur, Anthony (University of Luxembourg) |
| Abstract: | It is well-known that unemployment leaves scars after re-employment, but does this scarring effect persist even after retirement? We analyse European data on retirees from the SHARE panel, and show that the well-being of the retired continues to reflect the unemployment that they experienced over their working life. These scarring effects are somewhat smaller for older retirees, but larger for those who arguably had higher expectations regarding the labour market when they were active. Despite the substantial variation in culture and labour-market institutions over the 29 countries in our sample, there are no significant country differences. This long-run scarring for those who have left the labour market underlines that contemporaneous correlations significantly under-estimate the well-being cost of unemployment. |
| Keywords: | unemployment, retirement, scarring, CASP, SHARE |
| JEL: | J21 J63 I31 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17068&r= |
| By: | Bayerlein, Michael; Böttcher, Miranda; Rudloff, Bettina; Villarreal, Pedro A. |
| Abstract: | In the European summer of 2027, the world faces a threat, not only to human health but also to biological diversity and food security. An alarming scenario is emerging: The rapidly thawing permafrost in the Russian tundra has released an unknown form of anthrax that is primarily transmitted by birds. European efforts to collaborate with Russia in combating the spread of this pathogen are being met with resistance. |
| Keywords: | pathogens, permafrost, climate change, anthrax, Russia, global health, health threats, global health governance architecture |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpcom:299529&r= |
| By: | Lee, Neil; Ni, Metta; Boey, Augustin |
| Abstract: | The Singaporean state has played a crucial role in the country’s economic development. This led to concerns that a state-steered economy would be unable to develop fast-changing, disruptive sectors that are reliant on individual entrepreneurship, such as digital technology. Yet Singapore has become a world leader in the scaling of digital technology firms. In this paper, we consider how this happened. We show that advances in ICT opened a window of locational opportunity in digital tech, which was spotted by Singaporean policymakers open to experimentation. A distinctive ‘Singapore model’ developed to take advantage of this opportunity, exploiting Singapore’s geographical position, open economy, and business environment but combining this with active state intervention. To address coordination problems in the creation of an entrepreneurial ecosystem, Singaporean policymakers worked through a process we term ‘network coordination’ across the whole of government. While overall rates of entrepreneurship remain low, the country has been successful at scaling firms in the digital technology sector. These primarily focused on consumer applications and non-Singaporean markets, but there has been little development in frontier ‘deep tech’. |
| Keywords: | digital technology; Singapore; developmental states; industrial policy; entrepreneurial ecosystems |
| JEL: | R14 J01 L81 |
| Date: | 2024–06–14 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:123885&r= |
| By: | Maite Bl\'azquez Cuesta; Marco A. P\'erez Navarro; Roc\'io S\'anchez-Mangas |
| Abstract: | This paper examines the incidence and persistence of overeducation in the early careers of Spanish university graduates. We investigate the role played by the business cycle and field of study and their interaction in shaping both phenomena. We also analyse the relevance of specific types of knowledge and skills as driving factors in reducing overeducation risk. We use data from the Survey on the Labour Insertion of University Graduates (EILU) conducted by the Spanish National Statistics Institute in 2014 and 2019. The survey collects rich information on cohorts that graduated in the 2009/2010 and 2014/2015 academic years during the Great Recession and the subsequent economic recovery, respectively. Our results show, first, the relevance of the economic scenario when graduates enter the labour market. Graduation during a recession increased overeducation risk and persistence. Second, a clear heterogeneous pattern occurs across fields of study, with health sciences graduates displaying better performance in terms of both overeducation incidence and persistence and less impact of the business cycle. Third, we find evidence that some transversal skills (language, IT, management) can help to reduce overeducation risk in the absence of specific knowledge required for the job, thus indicating some kind of compensatory role. Finally, our findings have important policy implications. Overeducation, and more importantly overeducation persistence, imply a non-neglectable misallocation of resources. Therefore, policymakers need to address this issue in the design of education and labour market policies. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.04437&r= |
| By: | Susan J. Méndez (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne); Daniel Avdic (Deakin University); Johannes S. Kunz (Centre for Health Economics, Monash University); Maria Wiśniewska (Centre for Health Economics, Monash University) |
| Abstract: | We study how the diffusion of telemedicine technology impacted the quality and rates of antibiotic prescriptions using Australian survey data from primary care physicians linked to administrative records on their service provision. We classify physicians based on their relative use of telemedicine consultations in response to the introduction of government-subsidised telemedicine during the COVID-19 pandemic and relate their rates of antibiotic prescriptions to indicators of prescribing quality before and after lockdown periods in a difference-indifferences design. Our results suggest that more frequent users of telemedicine prescribe relatively fewer antibiotics while keeping prescribing quality largely unchanged. We interpret these findings as evidence that telemedicine can enhance efficiency of service provision in primary care settings. |
| Keywords: | telemedicine, practice style, quality of care, antibiotics, difference-indifferences, technology diffusion |
| JEL: | H44 H51 I11 I18 O33 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:iae:iaewps:wp2024n09&r= |
| By: | Mario Ghossoub; Michael Boyuan Zhu |
| Abstract: | We study Pareto efficiency in a pure-exchange economy where agents' preferences are represented by risk-averse monetary utilities. These coincide with law-invariant monetary utilities, and they can be shown to correspond to the class of monotone, (quasi-)concave, Schur concave, and translation-invariant utility functionals. This covers a large class of utility functionals, including a variety of law-invariant robust utilities. We show that Pareto optima exist and are comonotone, and we provide a crisp characterization thereof in the case of law-invariant positively homogeneous monetary utilities. This characterization provides an easily implementable algorithm that fully determines the shape of Pareto-optimal allocations. In the special case of law-invariant comonotone-additive monetary utility functionals (concave Yaari-Dual utilities), we provide a closed-form characterization of Pareto optima. As an application, we examine risk-sharing markets where all agents evaluate risk through law-invariant coherent risk measures, a widely popular class of risk measures. In a numerical illustration, we characterize Pareto-optimal risk-sharing for some special types of coherent risk measures. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.02712&r= |
| By: | Javier Aliaga Lordemann (Investigador Asociado de INESAD); Ignacio Garrón Vedia (Investigador invitado de INESAD); María Cecilia Lenis Abastoflor (Investigadora Junior de INESAD) |
| Abstract: | La quinua ha experimentado una notable transformación en las últimas décadas, consolidándose como un pilar fundamental para las comunidades agrícolas andinas y emergiendo como un actor prominente en el mercado global de los súper alimentos. Sin embargo, los precios de este grano han mostrado una dinámica compleja, con grandes fluctuaciones que han impactado directamente sobre los ingresos de los pequeños productores. Esta investigación tiene como objetivo analizar la dinámica del precio de la quinua en Bolivia identificando los principales eventos y factores que han generado quiebres estructurales en su tendencia, así como también identificando la persistencia de los choques a lo largo del tiempo. Se empleó un enfoque que combina, por un lado, el análisis de quiebres estructurales por medio del contraste de Bai y Perron, y también está la estimación de la memoria larga a través del estimador 2ELW. Adicionalmente, se evaluó la influencia de variables exógenas que afectan sobre los precios. Para ello se contempló el índice de actividad mundial de materias primas, el índice oceánico de El Niño y la producción mundial de la quinua. Los hallazgos revelan múltiples quiebres estructurales en la serie de precios de la quinua que se relacionan con ciertos eventos clave. Por ejemplo, están los cambios en la investigación y el desarrollo, el auge de la producción y la comercialización, y el impulso de las iniciativas gubernamentales y de la cooperación internacional. Estos quiebres también se asocian a distintos grados de persistencia de los choques en cada régimen identificado. Si bien las variables exógenas no muestran efectos significativos a corto plazo, se reconoce que podrían tener una influencia relevante en diferentes periodos. Este estudio demuestra la complejidad en la dinámica de los precios de la quinua en Bolivia, que está caracterizada por múltiples quiebres estructurales. Para aprovechar las oportunidades en este mercado, los productores y formuladores de políticas deben implementar estrategias flexibles y de monitoreo constante de la evolución del sector, tomando en cuenta los factores clave que han impulsado los cambios en la tendencia de precios a lo largo del tiempo. |
| Keywords: | Quinua, precios, quiebres estructurales, memoria larga, dinámica de mercado, región andina. |
| JEL: | Q10 Q11 Q17 O13 C22 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:adv:wpaper:202408&r= |
| By: | Lukas Hack; Klodiana Istrefi; Matthias Meier |
| Abstract: | Conventional strategies to identify monetary policy shocks rest on the implicit assumption that systematic monetary policy is constant over time. We formally show that these strategies do not isolate monetary policy shocks in an environment with time-varying systematic monetary policy. Instead, they are contaminated by systematic monetary policy and macroeconomic variables, leading to contamination bias in estimated impulse responses. Empirically, we show that Romer and Romer (2004) monetary policy shocks are indeed predictable by fluctuations in systematic monetary policy. Instead, we propose a new monetary policy shock that is orthogonal to systematic monetary policy. Our shock suggests U.S. monetary policy has shorter lags and stronger effects on inflation and output. |
| Keywords: | Systematic monetary policy, monetary policy shocks, identification |
| JEL: | E32 E43 E52 E58 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_557&r= |
| By: | David P. Glancy; Robert J. Kurtzman; Lara Loewenstein |
| Abstract: | A significant share of commercial real estate (CRE) investment properties---about half by our estimates---are purchased without a mortgage. Using comprehensive microdata on transactions in the U.S. CRE market, we analyze which types of properties are purchased without a mortgage, highlighting the important role of renovation or redevelopment options. We show that mortgage-financed properties are less likely to be subsequently redeveloped, and that owners anticipate these redevelopment frictions and avoid mortgage financing for properties with greater redevelopment options. These effects were even stronger during the COVID-19 pandemic, when uncertainty increased redevelopment option values. |
| Keywords: | Commercial real estate; Cash buyers; Redevelopment |
| JEL: | G21 G22 G23 R33 |
| Date: | 2024–06–21 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2024-46&r= |
| By: | Abate, Gashaw Tadesse; Abay, Kibrom A.; Chamberlin, Jordan; Sebsibie, Samuel |
| Abstract: | The emergence of rural land rental markets in Sub-Saharan Africa is recognized as a key component of the region’s ongoing economic transformation. However, the evidence base on land market participation relies on survey-derived measures, which do not always cohere when compared and triangulated, suggesting the possibility of non-trivial measurement error. We report the results of a priming and list experiments designed to shed light on a persistent mystery in rural household survey data from Africa: why there are so many fewer self-reported landlords (renters-out) than tenants (renters-in)? Our design addresses two hypotheses using experimental data from Ethiopia. First, rented-out and rented-in land may be systematically underreported because enumerators and respondents are typically primed to emphasize parcels that are actively managed/cultivated by the household. Second, rented or sharecropped-out land may be systematically underreported because of respondents’ reluctance to acknowledge an activity for which public disclosure may have negative repercussions. We address the first hypothesis with a priming experiment by exposing a random subset of respondents to a nudge that explicitly reminded them to fully account for all land, including rented/sharecropped-in and rented/sharecropped-out. We address the second hypothesis with a double-list experiment, designed to elicit true rates of land renting and sharecropping-out. We find that nudging induces about 4 percentage points increase (or 13% in relative terms) in the share of households participating in renting in or sharecropping-in practices but has negligible effects on reported rates of renting and sharecropping-out. Interestingly, our list experiment indicates much higher revealed rates of renting-out (14-15%) than is reflected in the nominal parcel-roster responses (3%). The magnitude of the latter finding fully explains the apparent difference in renting in versus renting-out rates derived from the regular parcel roster responses. These results indicate that efforts to document land market participation rate and associated impacts must overcome large systematic reporting biases. |
| Keywords: | land; households; survey design; surveys; Africa; Sub-Saharan Africa |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:ifprid:2255&r= |
| By: | Eslava, Marcela; Meléndez, Marcela; Ulyssea, Gabriel; Urdaneta, Nicolás; Flores, Ignacio |
| Abstract: | The relationship between firms and inequality has been a focus of recent attention globally. This chapter summarizes basic facts about this relationship for Latin America. Unlike advanced economies where superstar firm growth has prompted concerns over disproportionate income growth at the top, the facts we summarize illustrate that the main concern for Latin America is the extreme prevalence of tiny businesses whose workers and owners tend to populate the bottom income segments. The empirical likelihood that these businesses improve their productivity and grow to hire more workers and pay better wages is also very low. The region displays a deficit of employment generation in SMEs, by contrast to both microbusinesses (including self-employment) and large corporations. While the former tend to remunerate both workers and owners with very low incomes, the latter pay high wages but also exhibit low labor shares. |
| Keywords: | Inequality;Business Development;Latin America;Labor Force and Employment |
| JEL: | E02 J21 O54 |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:13480&r= |
| By: | International Monetary Fund |
| Abstract: | The Spanish economy has been resilient to successive shocks, whose effects were mitigated by unprecedented policy support that is now being phased out. The labor market performance has been exceptionally strong, and some of its perennial deficiencies—most notably the large share of temporary workers and high unemployment—have eased. Growth is projected to reach 2.4 percent in 2024, and headline and core inflation are expected to converge close to the ECB’s target before mid-2025. Risks have become more balanced but are still tilted to the downside for growth and the upside for inflation, including predominantly domestic risks (political fragmentation, under-execution of NGEU spending) but also global risks (energy price volatility, geopolitical risks, geo-economic fragmentation). |
| Date: | 2024–06–06 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfscr:2024/152&r= |
| By: | Yuichi Fukuta (Graduate School of Economics, Osaka University); Akiko Yamane (Graduate School of Humanities and Social Sciences, Hiroshima University) |
| Abstract: | We present novel insights into the Japanese equity return term structure by examining the re- versals of risk-adjusted returns on duration-sorted portfolios, as were particularly observed during the COVID-19 pandemic and are common during crises. Our analysis, conducted over the Japanese stock market from 1990 to 2022, reveals that market uncertainty significantly explains the returns of the long-short duration portfolio. Additionally, we find that the countercyclicality of the equity term structure can be attributed to di erences in the response of returns to considerably large neg- ative shocks. This study contributes to the understanding of the relationship between the timing of cash ows and stock returns and o ers valuable implications for studies on the cross-section of stock returns. |
| Keywords: | equity duration; cross-section of stock returns; market uncertainty; financial crisis; pan- demic |
| JEL: | G12 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:osk:wpaper:2408&r= |
| By: | Kun Heo; Antoine Zerbini |
| Abstract: | We analyze the incentives of authoritarian regimes to segment access to censored content through technology. Citizens choose whether to pay to access censored online content at a cost fixed by the regime: the firewall. A low firewall segments access and generates more compliance than full censorship – a high firewall – ever could. Regime opponents self-select into consuming censored content, and comply conditional on positive independent reporting. Regime supporters exclusively consume state propaganda, which secures their compliance. This segment-and-rule strategy can be engineered by making local news outlets uninformative, or by affecting the intrinsic benefit from access. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:not:notnic:2024-04&r= |
| By: | Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Christian Pierdzioch (Department of Economics, Helmut Schmidt University, Holstenhofweg 85, P.O.B. 700822, 22008 Hamburg, Germany); Aviral K. Tiwari (Indian Institute of Management Bodh Gaya, Bodh Gaya, India) |
| Abstract: | We use random forests, a machine-learning technique, to formally examine the link between real gasoline prices and presidential approval ratings of the United States (US). Random forests make it possible to study this link in a completely data-driven way, such that nonlinearities in the data can easily be detected and a large number of control variables, in line with the extant literature, can be considered. Our empirical findings show that the link between real gasoline prices and the presidential approval ratings is indeed nonlinear, and that the former even has predictive value in an out-of-sample exercise for the latter. We argue that our findings are in line with the so-called pocketbook mechanism, which stipulates that the presidential approval ratings depend on gasoline prices because the latter have sizable impact on personal economic situations of voters. |
| Keywords: | Presidential approval ratings, Gasoline price, Random forests, Forecasting |
| JEL: | C22 C53 Q40 Q43 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:pre:wpaper:202427&r= |
| By: | Zhouzhou Gu; Mathieu Lauri\`ere; Sebastian Merkel; Jonathan Payne |
| Abstract: | We propose and compare new global solution algorithms for continuous time heterogeneous agent economies with aggregate shocks. First, we approximate the agent distribution so that equilibrium in the economy can be characterized by a high, but finite, dimensional non-linear partial differential equation. We consider different approximations: discretizing the number of agents, discretizing the agent state variables, and projecting the distribution onto a finite set of basis functions. Second, we represent the value function using a neural network and train it to solve the differential equation using deep learning tools. We refer to the solution as an Economic Model Informed Neural Network (EMINN). The main advantage of this technique is that it allows us to find global solutions to high dimensional, non-linear problems. We demonstrate our algorithm by solving important models in the macroeconomics and spatial literatures (e.g. Krusell and Smith (1998), Khan and Thomas (2007), Bilal (2023)). |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.13726&r= |
| By: | Cars Hommes (University of Amsterdam, Tinbergen Institute, Bank of Canada); Julien Pinter (Minho University, Universidad de Alicante); Isabelle Salle (University of Ottawa, University of Amsterdam, Tinbergen Institute) |
| Abstract: | We conduct an information-provision experiment within a large-scale household survey on public finance in France, The Netherlands and Italy. We elicit prior opinions via open-ended (OE) questions and introduce a measure of macroeconomic policy literacy. A central bank (CB) educational blogpost explaining the mechanics of CB money preceded by a short video clip on public finance can persistently induce less support for monetary-financed proposals, which induces more support for fiscal discipline and CB independence, no matter the respondents’ level of policy literacy. However, prior beliefs matter and contradictory information may be polarizing. Information is shown to affect views by shifting the respondents’ inflation and tax expectations associated to policy options. |
| Keywords: | Large-scale household survey, information-provision experiment, RCT, central bank communication, expectations |
| JEL: | E |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:inf:wpaper:2024.9&r= |
| By: | Schanzenbach, Diane Whitmore (Northwestern University); Strain, Michael R. (American Enterprise Institute for Public Policy Research) |
| Abstract: | The 2021 Child Tax Credit (CTC) expansion increased government benefits to families, and especially to families with the lowest incomes. Economic theory predicts that this policy intervention would have led to a reduction in labor supply among adults in those families. Our review of available research suggests that employment within broadly defined demographic groups was not reduced by the 2021 CTC changes. However, we present evidence that employment was reduced among mothers with relatively low levels of education - the demographic group that was most affected by the CTC expansion. For the 2021 CTC expansion, theory and evidence were in the strongest alignment when the research design that produced the evidence was most focused on the demographic groups most likely to be affected by the expansion. |
| Keywords: | employment, labor supply, cash transfers, maternal employment, child tax credit |
| JEL: | H31 J08 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17041&r= |
| By: | Lucas Coffman (Boston College); Clayton R. Featherstone (Baylor University); Judd B. Kessler (The Wharton School, University of Pennsylvania) |
| Abstract: | Nudge-style interventions are popular but are often criticized for being atheoretical. We present a model of information nudges (i.e., interventions that provide useful but imperfect information about the utility of taking an action) based on Bayesian updating in a setting of binary choice. The model makes two main predictions: One, the probability of a positive treatment effect should be increasing in the baseline take-up rate. Two, across studies, as baseline rates increase from 0 to 1, the expected treatment effect has a "down–up–down" shape. A surprising corollary of both predictions is that treatment effects are expected to be negative for low baseline rates. We use reduced-form and structural methods to conduct a meta-analysis of 75 information nudges and corroborate both predictions. Both the meta-analysis and a novel survey of nudge experts suggest the intuition in the model is not currently known. Finally, we provide guidance for practitioners about the environments in which information nudges will positively affect a desired behavior and those in which they may backfire. |
| Keywords: | nudges, interventions, Bayesian updating |
| JEL: | C90 D04 |
| Date: | 2024–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:boc:bocoec:1077&r= |
| By: | Du, Zaichuan |
| Abstract: | This paper proposes a new approach to numerically solving a wide class of heterogeneous agent models in continuous time using adaptive sparse grids. I combine the sparse finite difference method with the sparse finite volume method to solve the Hamilton-Jacobian-Bellman equation and Kolmogorov Forward equation, respectively. My algorithm automatically adapts grids and adds local resolutions in regions of the state space where both the value function and the distribution approximation errors remains large. I demonstrate the power of my approach in applications feature high-dimensional state spaces, occasionally binding constraints, lifecycle and overlapping generations. |
| Keywords: | heterogeneous agent, mean field game, continuous time, adaptive sparse grids, occasionally binding constraints, overlapping generation, lifecycle |
| JEL: | C61 C63 E21 |
| Date: | 2024–07–04 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121381&r= |
| By: | Sylvain Béal (Université de Franche-Comté, CRESE, UR3190, F-25000 Besançon, France); David Lowing (Laboratoire de Génie Industriel, CentraleSupélec, Université Paris-Saclay, France); Léa Munich (Université de Franche-Comté, CRESE, UR3190, F-25000 Besançon, France and Université de Lorraine, BETA, F-54000 Nancy, France) |
| Abstract: | We consider the problem of sharing the cost of cleaning the non-point source pollution of industrial sites among the firms that own these sites. The bilateral liabilities between firms are depicted by an undirected graph. We introduce and characterize axiomatically two allocation rules inspired by the celebrated Polluter pays and Beneficiary pays principles in environmental law. The first one shares evenly the cost of cleaning up a site among the firms that can have caused the corresponding environmental damage. The second one charges to each firm the entire cost of cleaning up its own production site. We also establish connections with cooperative game theory. |
| Keywords: | Cooperative game theory; Cost allocation; Pollution; liability |
| JEL: | C71 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:crb:wpaper:2024-13&r= |
| By: | Zafer Büyükkeçeci (Max Planck Institute for Demographic Research, Rostock, Germany); Mine Kühn (Max Planck Institute for Demographic Research, Rostock, Germany); Siri E. Håberg; Cecilia Høst Ramlau-Hansen; Mikko Myrskylä (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Abstract: | Objective: This study investigates how perceived own fecundity and that of the partner are related to life satisfaction, relationship satisfaction, and union dissolution. Background: Across many high-income countries, fertility has been gradually moving to ages at which fecundity starts to decline. This delay in reproductive timing can have profound implications for individuals' fertility outcomes, increasing the risk of either voluntary or involuntary childlessness. In a context that is characterized by late childbearing, perceived fecundity, both one’s own and that of the partner, may emerge as an important determinant of individuals' overall satisfaction and the dynamics of their romantic relationships. Method: Using 13 waves of longitudinal data from the German Family Panel (pairfam), we employ individual fixed-effects models to examine within-person changes in perceived fecundity, both one’s own and that of the partner, and their consequences for satisfaction and relationship outcomes. Results: Declines in perceived fecundity, for both oneself and one's partner, were associated with reductions in life and relationship satisfaction. A key finding is that the partner's perceived fecundity, as rated by the anchor, had a stronger impact on relationship outcomes than the anchor’s own perceived fecundity. Additionally, an increase in the risk of union dissolution was observed with a decline in the partner's perceived fecundity, while such an association was not found with one's own perceived fecundity. Our analysis revealed no significant gender differences in these associations. Additional analyses, in which we interacted perceived fecundity with parental status and age, showed that the relationship between perceived fecundity and outcomes was weaker among parents than among childless individuals, and decreased with age. Conclusion: The study contributes to the literature on fertility dynamics and their social implications by highlighting the role of subjective perceptions of one’s own fecundity and that of the partner in shaping life satisfaction and relationship resilience. |
| Keywords: | fecundity, fertility, interspouse relationships, satisfaction, separation |
| JEL: | J1 Z0 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:dem:wpaper:wp-2024-012&r= |
| By: | Ashima Goyal (Indira Gandhi Institute of Development Research) |
| Abstract: | We examine common views regarding weakening of rights of states and finds them to be misconceptions Indian states get more resources and freedoms than in most federal countries. Some fiscal restraints on states borrowing are necessary to preserve overall macroeconomic stability and are found in all federal structures. Although lower per capita income states are awarded more of Finance Commission rule based transfers, more efficient states get more of conditional grants, as better facilities allow better utilization. Since they go more to better performing states conditionalities induce better performance helping states escape low level traps and distorting choices such as in the electricity sector or in water supply. They have improved the quality of state spending. They should therefore be used more, along with raising voter awareness and convergence to best practices, for states to deliver on their responsibilities. |
| Keywords: | Fiscal federalism, states, rights, responsibilities, India, conditionalities, Finance Commission |
| JEL: | H77 H44 H30 H20 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ind:igiwpp:2024-011&r= |
| By: | Srijit Mishra (Indira Gandhi Institute of Development Research) |
| Abstract: | This paper identifies the problem of information loss in computation of multidimensional index on account of cut-offs between and within dimensions. The former refers to the ?? cutoff across dimensions on account of headcount fetish and the latter points to the restrictions on normalised deprivation score on account of deprivation line as benchmark. One also observes information loss when available data is converted to binary form. An empirical exercise substantiates the points. We suggest that the computation of multidimensional index in deprivation (poverty) and attainment (empowerment) should do away with these information loss by not censoring, by replacing deprivation line with maxima, where appropriate, as benchmark for computing normalised deprivation score, and by not converting available data to binary form. |
| Keywords: | Attainment, Censoring, Deprivation, Headcount fetish, Information loss, Multidimensional index |
| JEL: | C38 D63 H89 I32 O10 Z13 Z18 |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:ind:igiwpp:2024-007&r= |
| By: | Thierry Blayac (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Pierre Courtois (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Lucille Sevaux (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Hélène Rey-Valette (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Anais Page (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Nicole Lautrédou-Audouy (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Jean-Michel Salles (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Frédérique Viard (UMR ISEM - Institut des Sciences de l'Evolution de Montpellier - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EPHE - École Pratique des Hautes Études - PSL - Université Paris Sciences et Lettres - Institut de recherche pour le développement [IRD] : UR226 - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier) |
| Abstract: | Marinas have a major ecological footprint, not only because of the pollution they generate but also because of the introduction and spread of non-indigenous species (NIS). This invites us to reconsider both the practices and infrastructures of marinas but also their uses and users, as marinas are increasingly recognized as places of well-being. The twofold objective of this article is to analyze the public's perception of environmental and ecological degradation in marinas and to assess the willingness to pay to improve their environmental quality. We conducted a field survey among residents and boaters of four marinas in France and showed that both have a relatively low knowledge of NIS, as well as of the responsibility of the boating activity for their spread. Other environmental degradations, such as the pollution generated by boats, are better identified and many agree on the positive economic impact of marinas. We showed a high willingness to pay to improve the environmental quality of marinas and on this basis make recommendations on how to encourage support for reducing environmental degradation. In particular, we discuss the appropriation of marinas by a wider population, including residents, young people and women. The challenge is for marinas to become multifunctional spaces, with the extension of their uses to a wider range of users going hand in hand with an improvement in their environmental quality. |
| Keywords: | Contingent valuation, Public and user survey, Ecological impacts, Marine invasive species, Boaters Coastal environments, Ports |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04596361&r= |
| By: | Takahiro ITO (Graduate School of International Cooperation Studies, Kobe University) |
| Abstract: | This paper formulates a novel distribution-free maximum likelihood estimator for binary and ordered response models and demonstrates its finite sample performance in a Monte Carlo simulation. The simulation examines an ordered response model, focusing on estimating the effect of an exogenous regressor (e.g., randomly assigned treatment status) on the choice probability for an ordered outcome. Estimations are implemented based on a binary specification, which converts the outcome to dichotomous values {0, 1}, or an ordinal specification, which uses the outcome as is. The simulation results show that the proposed estimator outperforms conventional parametric/semiparametric estimators in most cases for both specifications. The results also show that the superiority of the proposed estimator holds even in the presence of conditionally heteroscedastic variance. In addition, the estimates based on the ordinal specification are always superior to those based on the binary specification in all simulation designs, implying that converting ordered responses to dichotomous responses and estimating based on the binary specification may not be the optimal approach. |
| Keywords: | semiparametric estimation, distribution-free maximum likelihood, binary choice model, ordered response model, Likert-type data, heteroscedastic variance |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:kcs:wpaper:42&r= |