R2 in Seemingly Unrelated Regression Equations

Some properties are discussed of McElroy's measure of goodness of fit for Zellner's seemingly unrelated regression equations (Mc Elroy, 1977). Amongst them are asymptotic properties. We show that a possible alternative, the squared sample correlation coefficient of the npvector of dependent variables y=(y₁', y₂',…, y_g')' and the vector of estimated variables y, both premultiplied by the inverse of the square root of the variance matrix of y, is not invariant under changes of location or scale. This measure therefore can't be considered as a serious alternative to McElroy's.     

Some remarks on measurement errors and the identification of panel data models*

We demonstrate that despite the common worry about the possible correlations between the unobserved individual effects and the explanatory variables in panel data models the likelihood approach can provide a unified framework towards the study of the identification of a panel data model subject to measurement errors. In fact, it can also serve as a basis for deriving efficient estimation methods.     

IN DEFENCE OF EMPIRES1

This article argues the case for empires. They provided global order in the nineteenth century. Their dissolution in the twentieth century resulted in global disorder. A blind spot in the classical liberal tradition was its assumption that international order would be a spontaneous by-product of limited government and unilateral free trade practised at home. This denial of power politics flowed into twentieth-century Wilsonianism. Now, there is no alternative to US imperial power to supply the global Pax. Whether the USA is willing to fulfil this role is open to question.     

UNDERSTANDING INDUSTRIAL CRISES[1]

This article provides a conceptual framework for understanding industrial crises. These crises are organizationally-based disasters which cause extensive damage and social disruption, involve multiple stakeholders, and unfold through complex technological, organizational and social processes. The characteristics of industrial crises are illustrated through a comparison of three diverse crises - the Bhopal disaster, the Tylenol poisonings, and the explosion of the space shuttle Challenger. Relationships among these characteristics are presented in a model of industrial crisis. Some issues for further research are identified.     

Relative error prediction in nonparametric deconvolution regression model

In this paper, we studied an alternative estimator of the regression function when the covariates are observed with error. It is based on the minimization of the relative mean squared error. We obtain expressions for its asymptotic bias and variance together with an asymptotic normality result. Our technique is illustrated on simulation studies. Numerical results suggest that the studied estimator can lead to tangible improvements in prediction over the usual kernel deconvolution regression estimator, particularly in the presence of several outliers in the dataset.     

Semiparametric time series regression modeling with a diverging number of parameters

Variable selection and error structure determination of a partially linear model with time series errors are important issues. In this paper, we investigate the regression coefficient and autoregressive order shrinkage and selection via the smoothly clipped absolute deviation penalty for a partially linear model with a divergent number of covariates and finite order autoregressive time series errors. Both consistency and asymptotic normality of the proposed penalized estimators are derived. The oracle property of the resultant estimators is proved. Simulation studies are carried out to assess the finite‐sample performance of the proposed procedure. A real data analysis is made to illustrate the usefulness of the proposed procedure as well.     

ENACTED SENSEMAKING IN CRISIS SITUATIONS[1]

Sensemaking in crisis conditions is made more difficult because action that is instrumental to understanding the crisis often intensifies the crisis. This dilemma is interpreted from the perspective that people enact the environments which constrain them. It is argued that commitment, capacity, and expectations affect sensemaking during crisis and the severity of the crisis itself. It is proposed that the core concepts of enactment may comprise an ideology that reduces the likelihood of crisis.     

Optimale snijsnelheid bij meer-machine-bediening1),2)

In calculating formulas to determine the optimal number of machines assigned to an operator, the ratio of service time to machine operating time is supposed to be a constant for a given type of equipment. Changing the cutting speed on automatic lathes changes the tool life and the unit production time and, therefore, the ratio of service time to machine operating time and the efficiency. In this article a method to determine the optimal cutting speed and the corresponding optimal number of machines assigned to an operator is given. An example is given in which it was possible to attain a saving of f 2200 per lathe per year by assigning 7 lathes to an operator instead of 3. A further saving of f 5500 per lathe per year was calculated by decreasing the cutting speed to three-fourths of its original value and correspondingly assigning 15 to 17 lathes to one operator.     

PSEUDO-R2 MEASURES FOR SOME COMMON LIMITED DEPENDENT VARIABLE MODELS

Abstract. A large number of different Pseudo- R ² measures for some common limited dependent variable models are surveyed. Measures include those based solely on the maximized likelihoods with and without the restriction that slope coefficients are zero, those which require further calculations based on parameter estimates of the coefficients and variances and those that are based solely on whether the qualitative predictions of the model are correct or not. The theme of the survey is that while there is no obvious criterion for choosing which Pseudo- R ² to use, if the estimation is in the context of an underlying latent dependent variable model, a case can be made for basing the choice on the strength of the numerical relationship to the OLS- R ² in the latent dependent variable. As such an OLS- R ² can be known in a Monte Carlo simulation, we summarize Monte Carlo results for some important latent dependent variable models (binary probit, ordinal probit and Tobit) and find that a Pseudo- R ² measure due to McKelvey and Zavoina scores consistently well under our criterion. We also very briefly discuss Pseudo- R ² measures for count data, for duration models and for prediction-realization tables.     

FORMALIZATION AND THE ORGANIZATIONAL LIFE CYCLE[1]

The theoretical importance of formalization has often been obscured in empirical investigation. This article discusses two outcomes of formalization: administrative efficiency, and influence. As formalization contributes to administrative efficiency, it also bestows upon the administrator power and influence. While some theoretical attention has been paid to the efficiency theme, influence has been largely ignored. The article suggests that formalization as code, as channel, and as standard can be best understood in the context of the organizational life cycle. Formalization (as efficiency) is likely to contribute to effectiveness early in an organization's history. Later in the life cycle, however, formalization (as influence) may contribute to organizational ineffectiveness and decline.     

HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL RELATIONS[1]

Human resource management (HRM) is a term which is now widely used but very loosely defined. In this paper it is argued that if the concept is to have any social scientific value, it should be defined in such a way as to differentiate it from traditional personnel management and to allow the development of testable hypotheses about its impact. Based on theoretical work in the field of organizational behaviour it is proposed that HRM comprises a set of policies designed to maximize organizational integration, employee commitment, flexibility and quality of work. Within this model, collective industrial relations have, at best, only a minor role. Despite the apparent attractions of HRM to managements, there is very little evidence of any quality about its impact. Furthermore very few UK organizations appear to practise a distinctive form of HRM, although many are moving slowly in that direction through, for example, policies of employee involvement.     

Asymptotic consequences of neglected dynamics in individual effects models*

We assess the asymptotic consequences of estimating static models based on cross-section or panel data, when in reality the data are generated by a dynamic relationship, involving lagged dependent and current and lagged exogenous variables as well as individual effects. If the exogenous variable follows a stationary process, then the static estimators usually underestimate its long-run effect. This inconsistency is less severe, the higher the autocorrelation of the exogenous variable. If the exogenous variable follows a random walk with or without individual-specific drift, then the estimators are found to be consistent for the long-run effect.