RECENT DEVELOPMENTS IN COUNT DATA MODELLING: THEORY AND APPLICATION

Abstract. This paper deals with statistical methods for modelling individual behavior when the endogenous variable is a nonnegative integer. Examples are the number of children, the number of job changes or the number of shopping trips in a given period. Several approaches—Poisson, robust Poisson, negative binomial (NEGBIN), NEGBIN _k , hurdle Poisson, truncated-at-zero Poisson—are discussed with a focus on specification, estimation, and testing. An application to labor mobility data illustrates the gain obtained by carefully taking into account the specific structure of the data.     

COINTEGRATION AND CHANGES IN REGIME: THE JAPANESE CONSUMPTION FUNCTION

In this paper we examine a model of cointegration where long-run parameters are subject to switching between several different cointegrating regimes. These shifts are allowed to be governed by the outcome of an unobserved Markov chain with unknown transition probabilities. We illustrate this approach using Japanese data on consumption and disposable income, and find that the data favour a Markov-switching long-run relationship over a standard temporally stable formulation. © 1997 by John Wiley & Sons, Ltd.     

THE ROLE OF FEES IN PATENT SYSTEMS: THEORY AND EVIDENCE

This paper reviews the economic literature on the role of fees in patent systems. Two main research questions are usually addressed: the impact of patent fees on the behavior of applicants and the question of optimal fees. Studies in the former group confirm that a range of fees affect the behavior of applicants and suggest that a patent is an inelastic good. Studies in the latter group provide grounds for both low and high application (or pre‐grant) fees and renewal (or post‐grant) fees, depending on the structural context and policy objectives. The paper also presents new stylized facts on patent fees of 30 patent offices worldwide. It is shown that application fees are generally lower than renewal fees, and renewal fees increase more than proportionally with patent age.     

DETERMINANTS OF CITY GROWTH AND OUTPUT IN INDIA

To investigate what determines urban population and economic growth, the determinants of urban population growth and economic output in India are examined empirically. City growth and economic output regressions are estimated using several approaches. Since only growing areas are usually designated as towns, the urban population of districts that are larger geographical areas than cities are estimated. It is found that, at the district level, manufacturing has a positive impact on city size, and proximity to large cities causes nearby cities to be larger, reflecting agglomeration effects.     

THE ECONOMICS OF ABSENCE: THEORY AND EVIDENCE

Abstract. Worker absenteeism constitutes a significant loss of work-time and therefore has important implications for both household income and firm productivity. Despite this, the economics profession has been somewhat laggard relative to other disciplines in addressing the phenomenon. The situation is, however, changing, with recent years witnessing a mild flurry of activity. The aim of this paper is to maintain, and if possible, enhance this momentum. We do this firstly by developing some basic theoretical ideas which we consider to be central to an economic analysis of absence. In particular, we address the often cited claim that observed absence is unequivocally inefficient. Second, by reviewing some of the key contributions, we attempt to assess where the literature on the economics of absence stands at present, as well as suggesting some potentially fruitful lines of future enquiry.     

CHALLENGES OF MIXED‐ECONOMY SOLUTIONS IN HEALTHCARE: THE EXAMPLES OF SWITZERLAND AND SINGAPORE

In the search for improved healthcare systems able to cope with rising costs, policy‐makers are likely to turn to mixed‐economy solutions. The lure of integrating ‘the best of both worlds’ generally leads to a blend of public and private providers, high regulation density as well as legal constraints on consumers based on top‐down political prerogatives. The Swiss and Singaporean healthcare systems perfectly exemplify this strategy. Both combine market features and government planning. They differ significantly, however, when it comes to the specific policies being implemented and the scope of private sector involvement in each country. This article discusses the Swiss and Singaporean healthcare systems and highlights the dissimilarities between the two countries.     

THE NORMALIZED CES PRODUCTION FUNCTION: THEORY AND EMPIRICS

Abstract The elasticity of substitution between capital and labor and, in turn, the direction of technical change are critical parameters in many fields of economics. Until recently, though, the application of production functions with specifically non‐unitary substitution elasticities (i.e., non‐Cobb–Douglas) was hampered by empirical and theoretical uncertainties. As recently revealed, ‘normalization’ of production‐technology systems holds out the promise of resolving many of those uncertainties. We survey and assess the intrinsic links between production (as conceptualized in a production function), factor substitution (as made most explicit in Constant Elasticity of Substitution functions) and normalization (defined by the fixing of baseline values for relevant variables). First, we recall how the normalized Constant Elasticity of Substitution function came into existence and what normalization implies for its formal properties. Then we deal with the key role of normalization in recent advances in the theory of business cycles and of economic growth. Next, we discuss the benefits normalization brings for empirical estimation and empirical growth research. Finally, we identify promising areas of future research.