Testing the restrictions implied by the rational expectations hypothesis

The nature and form of the restrictions implied by the rational expectations hypothesis are examined in a variety of models with expectations and the properties of appropriate test statistics are analyzed with Monte Carlo evidence. Specifically, we consider the implications of lagged variables, simultaneous equations, and future period expectations upon the number and functional form of the rational expectations restrictions. Two asymptotically equivalent test statistics — a likelihood ratio and a Wald test — are available for implementing a test of these restrictions. Monte Carlo evidence is offered to provide a comparison between the properties of the alternative test statistics in small samples.     

Coping with poverty in international assistance policy: An evaluation of spatially integrated investment strategies

International assistance agencies have turned increasingly to integrated rural development policies in an attempt to ameliorate the inequitable distribution of economic growth plaguing Third World nations since World War II. This paper reviews the functionally and spatially integrated investment strategies of the World Bank, USAID and the United Nations, outlines their objectives, perceptions of the problem, basic assumptions and programmes, and evaluates them in terms of potential difficulties for implementation. Those factors crucial to making integrated development policies operational — knowledge of human ecosystems in rural areas, analytical ability, operational procedures, arrangements for local participation, subsistence systems indicators and administrative capacity of local and national governments — are discussed and assessed.     

Married couples’ involvement with family vacations

Abstract

The involvement construct has received a great deal of attention in recent years. However, the majority of research on this topic has focused on the individual and has ignored spouses’ shared leisure involvement. In addition, little work has been done on involvement in the product‐class context of family vacations. This study examined the underlying dimensions of married couples’ involvement with family vacations and how these dimensions relate to selected personal variables. Factor analysis revealed two underlying dimensions. Stepwise multiple regression revealed that pleasure‐importance was positively related to gender role ideology and education and negatively related to presence of children in the home. A positive relation existed between the second dimension, sign value, and age. The study provides insight into both the nature of the involvement construct and how it might be used in future research.     

What is professional attire today? A conjoint analysis of personal presentation attributes

Personal presentation attributes have long been understood to affect perceptions of competence and capabilities. To that end, this study investigates seven attributes associated with favorable interview presentation, including overall physical attractiveness, neatness and grooming, clothing color, conservative versus trendy attire, professional versus casual attire, and body modification (including tattoos and piercings). Participants (n = 108), including students, faculty, and hospitality industry professionals, sorted an orthogonal array of 16 full-color, laminated cards that contained photos so that respondents could see levels of clothing color, clothing conservativeness, and degree of professional attire. The remaining attributes and their corresponding levels were shown on respective analog indicators. The conjoint analysis results indicate that grooming and professional attire are the most important attributes in shaping favorable perceptions. Furthermore, faculty perceived conservative clothing to be better while students and industry professionals indicated that trendy clothing creates a more favorable presentation on the part of a job candidate.     

Testing conditional factor models

Using nonparametric techniques, we develop a methodology for estimating and testing conditional alphas and betas and long-run alphas and betas, which are the averages of conditional alphas and betas, respectively, across time. The estimators and tests can be implemented for a single asset or jointly across portfolios. The traditional Gibbons, Ross, and Shanken (1989) test arises as a special case of no time variation in the alphas and factor loadings and homoskedasticity. As applications of the methodology, we estimate conditional CAPM and multifactor models on book-to-market and momentum decile portfolios. We reject the null that long-run alphas are equal to zero even though there is substantial variation in the conditional factor loadings of these portfolios.