An effective step-down algorithm for the construction and the identification of nonisomorphic orthogonal arrays

In this paper we present an effective algorithm for the construction and the identification of two-level nonisomorphic orthogonal arrays. Using this algorithm, we identify and list a full catalogue of nonisomorphic orthogonal arrays with parameters OA(24,7,2,t), OA(28,6,2,t) and OA(32,6,2,t), t ≥ 2. Some statistical properties of these designs are also considered.     

The long-run relationship between private and public savings: An empirical note

This empirical note extends the recent work by Holmes (2006) in examining the long-run relationship between private and public savings in the U.S. over the post-World War II period. Standard Engle-Granger cointegration tests fail to reject the null hypothesis of no cointegration; however, once allowance is made for an endogenous break in the cointegrating relationship, the weak form of the Ricardian equivalence proposition is supported.     

Party alternation,divided government,and fiscal performance within US States

The literature on US state government fiscal performance has examined the role of institutional factors such as budget rules and divided government, but has largely ignored the impact of party alternation. This paper primarily focuses on whether party alternation in the governor’s office affects fiscal performance. Our hypothesis is that frequent party changes create a political environment that impacts fiscal performance. To further assess the impact of party alternation on fiscal performance, we consider our primary hypothesis in conjunction with the degree of division that exists between the governor’s office and the legislature. Using panel data from 37 states between 1971 and 2000 we test the hypothesis that frequent party alternation can be expected to affect fiscal performance and find strong support for the hypothesis. An earlier version of this paper was presented at the 2005 Public Choice Society Meetings. The authors would like to thank the conference participants, William Shughart, Charles Register, Jocelyn Evans, John D. Jackson, Amihai Glazer, and two anonymous referees for their comments. We would also like to thank Craig R. Stiller for his help in the collection of data. Any remaining errors remain the responsibility of the authors.     

Productivity and Welfare

Technical change is generally characterized by a rate and biases, both evaluated for given producer prices. This paper examines the potential discrepancy between this rate and the corresponding rate of consumer welfare change as measured by Allais distributable surplus. We postulate a general equilibrium context with various market failures (taxes, quotas, imperfect competition, and “poorly priced” commodities), and use comparative statics to express the rate of welfare change in terms of the rate and biases of the technical change. An elementary simulation model of a taxed economy suggests that the rate of welfare change may differ from the rate of technical change by as much as 50% under plausible circumstances.     

The efficiency of decomposition vs direct solution with implications for the question of decentralized or centralized planning

Conclusion The investigation provides overwhelming evidence that decomposition tends to become increasingly more efficient than direct solution as the number of subproblems becomes greater.Further investigation would be required to obtain a comparable picture of the behaviour of decomposition with respect to an increasing number of variables in the master problem as their range of variation in the present study is rather restricted.It is gratefully acknowledged: that in implementing the decompositional procedure on the computer I have benefitted from Mr. A. C. McKay's advice on matters relating to the computer programmes; also that I enjoyed the pleasant and friendly co-operation of the staff of the computer Centre, University of Birmingham, without which the difficulties involved in carrying out the present task would have been compounded manifold; that Dr. C.-L. Sandblom carefully studied this paper and suggested a number of valuable improvements. Finally, I should like to thank Professor Kronsjö for the encouragement that he has given to me in executing this project and to the research council which made this investigation possible.     

Managerial bonding and stock liquidity: An analysis of dual-class firms

Given the decision to create a second class of stock through a dual-class structure, we propose that management is more (less) likely to create a liquid secondary market for both classes of shares the lower (higher) its willingness to tie its personal wealth to firm performance. If market makers recognize this relation, they should assign a higher likelihood to trades motivated by superior information in shares of firms that list both classes of stock and a lower likelihood for firms that list only one class of stock pursuant to recapitalization. Additionally, they should assign a lower likelihood to trades motivated by superior information in shares of IPOs that choose a dual-class structure and list only one class relative to IPOs that remain single-class. Our empirical tests based on IPOS and recaps between 1985 and 1988 provide support for these propositions.     

Ownership structure and golden parachutes: Evidence of credible commitment or incentive alignment?

Using a sample of S & P 500 firms, we find that golden parachutes are associated with concentrated external ownership, less concentrated internal ownership, and non-Delaware incorporation. We find little support that concentrated external owners use golden parachutes as credible commitment devices. The general multivariate results support the incentive alignment hypothesis, and reaffirm the view that golden parachutes are a mechanism used to align managerial and shareholder interests when there is a separation between ownership and control. (JEL G32)     

Ein verallgemeinerter Geburten- und Todesprozeß zur Erklärung der Entwicklung des deutschen Volkseinkommens, 1851–1939

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