Book Notices

Books review in this article:
The German Dilemma: An Appraisal of Anti-Semitism, Ultra-Nationalism and Democracy in West Germany.
Diary of a Strike. By Bernard Karsh
A Short History of New York State. By David M. Ellis, James A. Frost, Harold C. Syrett and Harry J. Carman
Dalla puberta alia prostituzione. By Primo Sacripanti
Dictionary of Personnel and Industrial Relations. By Esther L. Becker     

A point optimal test for heteroscedastic disturbances

A new test for additive heteroscedasticity in the disturbances of the linear regression model is proposed. Power functions of various forms of the new test are compared empirically with those of currently favoured tests for a range of heteroscedastic models. The results highlight the power advantage of a test which is MP1 at a central point in the alternative hypothesis parameter space. The main conclusion is that the recommended version of the new test is generally more powerful than existing tests against medium and severe heteroscedasticity, whereas the King and Szroeter tests perform better against weak heteroscedasticity.     

Hedge funds and financial stability: Regulating prime brokers will mitigate systemic risks

We review key characteristics of the hedge fund industry, and identify conditions under which this sector can pose a threat to financial stability. Direct regulation of hedge funds that increases transparency does not appear feasible, may create a moral-hazard problem, and may reduce market liquidity. Indirect regulation by prime brokers and market discipline by creditors, counterparties, and investors have been effective in limiting the risks from the hedge fund sector. To reduce systemic risks, more regulation of prime brokers is warranted to avoid competitive dynamics from undermining counterparty risk management practices.     

The International Reserves Issue in the EMU

This paper examines the effects of the Economic and Monetary Union on demand for foreign reserves. The traditional theory on demand for international reserves assigns a pivotal role to imports. However, in a currency union part of imports are settled in the common currency, leaving no incentive for keeping foreign reserves. Moreover, the pooling of the demand for reserves in the currency union and an increasing role of a currency as an international reserve currency may also influence, among other things, the union demand for reserves. Based on estimated demand functions for reserves it is shown that the Economic and Monetary Union has reduced the demand for reserves substantially. It is argued that an enlargement with new member countries of the European Union will result in further savings of reserves. A simple calculation at the end of the paper illustrates the welfare gain associated with the reduced need of reserves in the Economic and Monetary Union.     

大规模私有化与后共产主义国家死亡率危机的跨国分析

在20世纪90年代初欧洲的大部分后共产主义国家的成年人死亡率都呈上升态势,而各国在不同时期死亡率变化的差异至今仍然缺乏一个确切的解释.我们通过多元纵向回归来分析在东欧和前苏联的后共产主义国家中处于工作年龄段(15-59岁)男性从1989到2002年的年龄标准化死亡率,研究发现:作为一个经济转型策略,快速的大规模私有化是造成后社会主义国家成年人死亡率差异的决定性因素;而如果一个国家社会资本高,那么私有化对死亡率的影响就会被削弱.