The term structure of interest rates in a DSGE model with recursive preferences

A dynamic stochastic general equilibrium (DSGE) model in which households have Epstein and Zin recursive preferences is solved with perturbation. The parameters governing preferences and technology are estimated by maximum likelihood using macroeconomic data and the term structure of interest rates. The estimates imply a large risk aversion, an elasticity of intertemporal substitution higher than one, and substantial adjustment costs. Furthermore, the paper identifies the tensions within the model by estimating it on subsets of these data. The analysis concludes by pointing out potential extensions that may improve the model's fit.     

Stuart B. Schwartz. Tropical Babylons: Sugar and the Making of the Atlantic World, 1450-1680. Chapel Hill: University of North Carolina Press, 2004. xiii + 347 pp. ISBN 0-8078-2875-0, $59.95 (cloth); ISBN 0-8078-5538-3, $22.50 (paper).

This volume examines the surprisingly complex history of thewestward shift in sugar production from the Mediterranean toAmerica in the fifteenth to seventeenth centuries. Many factorsinfluenced this shift, including those most often studied: therise and growth of merchant capital, slavery, and technologicalchange. The local-level studies aggregated here reexamine thisdevelopment and thereby reveal the complex evolution and thegreat     

Survey and Analysis of Labour on Organic Farms in the UK and Republic of Ireland

A survey of 1144 organic farms in the UK and Republic of Ireland (IE) was used to assess whether organic agriculture provides more labour than conventional (nonorganic) farming. The sampled farms comprised 23% of all organic farms. The jobs per farm and per area varied greatly with enterprise type and farm size, and between regions. Comparison of the survey with national statistics showed that organic farms employ 135% more FTE (full time equivalent jobs) per farm than conventional farms. The mean jobs per area was markedly lower for organic farms (1.35 compared to 2.43 FTE per 100 ha), because they are larger (216 ha compared to 51 ha). Even when corrected for the different size distribution, organic farms had more jobs per farm than the national averages (2.52 and 1.49 FTE for the UK and IE, compared to 1.28 and 1.16 FTE). The farm size weighted FTE per area for organic farms in the UK (4.33 FTE per 100 ha) was almost twice that for conventional farms. We predict there would be 19% and 6% more farming jobs in the UK and IE if 20% of the farms of both countries were to become organic (compared to the present 1–2%).     

Trade Intensity and Business Cycle Synchronicity in Africa

Abstract: Business cycle synchronicity, which is the key requirement for sharing a common currency, is not particularly strong within the prospective African monetary unions. However, this parameter is not irrevocably fixed and may be endogeneous vis‐à‐vis the integration process. For example, trade may increase the similarity of economic disturbances. This paper tests such an effect among the 53 African countries from 1965 to 2004. The estimated results suggest that trade intensity increases the synchronization of business cycles in the African context. The magnitude of the ‘endogeneity effect’ is, however, smaller than similar estimates among industrial countries.     

Contextual factors that foster or inhibit para‐teacher professional development: the case of an Indian,non‐governmental organization

The appointment of para‐professionals to overcome skill shortages and/or make efficient use of expensive resources is well established in both developing and developed countries. The present research concerns para‐teachers in India. The literature on para‐teachers is dominated by training for special needs settings, largely in developed societies. Little has been published about para‐teachers working in developing countries with children without disabilities, despite this being a common occurrence. The present research investigates how contextual factors influence the design and implementation of professional support for para‐teachers. The research participants were 12 para‐teachers and five management and administrative staff. Contextual factors included characteristics of para‐teachers, classrooms and students from under‐resourced settings; and the practices and policies found in a non‐school educational setting, here a non‐governmental organization. The study indicates that each factor has potentially enhancing and hindering effects which need to be taken into consideration when designing and implementing professional development work.     

A nice estimation of Gini index and power Pen's parade

Under the assumption that an economic variable y such as income, is a power function of its rank among n individuals, we provide the coefficient of variation and the Gini index as functions of the power degree of the Pen's parade. In fact, knowing the power degree of the Pen's parade function, we obtain the coefficient of variation and a sharp analytical simple way to compute Gini index in terms of the power degree. Reciprocally, knowing, the coefficient of variation of a said variable, we can also provide the power degree of the corresponding Pen's parade, hence deducting its shape. Several examples are given to illustrate our methods. Special attention is given to countries' Gini indices of the World development indicators report 2009 (WDI 2009).     

The U.S. industrial marketer's position in international trade

The purpose of this article is to examine some of the interests served by international trade and several of the factors that will affect the environment in which the marketing manager will operate in the next decade. The diverse forces that influence foreign trade are of increasing importance to marketing strategy. Although salesmen are still counseled to “sell-like-hell”, senior marketing people need to have a perspective that permits them to anticipate the threats and oppurtunities these forces create. We will suggest some of the trends and issues to which the marketer must be alert. While our analysis will be most appropriate for American companies, this approach is also applicable for firms based in other countries.The article is divided into five parts. In the first part we examine the importance and motives for U.S. international trade. We then explore U.S. patterns of imports and exports. In the third section we consider the role of technology in trade. Next we consider some of the trends that seem to apply for the next decade. Finally we raise some issues that will probably demand the marketer's attention in the future.