Assessing the performance of matching algorithms when selection into treatment is strong

This paper investigates the method of matching regarding two crucial implementation choices: the distance measure and the type of algorithm. We implement optimal full matching—a fully efficient algorithm—and present a framework for statistical inference. The implementation uses data from the NLSY79 to study the effect of college education on earnings. We find that decisions regarding the matching algorithm depend on the structure of the data: In the case of strong selection into treatment and treatment effect heterogeneity a full matching seems preferable. If heterogeneity is weak, pair matching suffices. Copyright © 2007 John Wiley & Sons, Ltd.     

Interregional inequalities in Israel, 1948–1995: divergence or convergence?

A model is proposed which explains the spatial distribution of different income groups in terms of the relation between the cost of living in a particular geographic area and the income of its inhabitants. The applicability of this model to spatial inequalities in Israel is investigated, using data from five subsequent censuses of population and housing. The analysis indicates that changes in the spatial variation of various indicators of development do not follow a uniform pattern: the extent of interregional disparity differs with the indicator selected for measuring it. Furthermore, whereas development in the central part of Israel has tended to become more uniform over time, the country's peripheral regions have become more polarized. Several strategies are proposed for reducing the extent of interregional disparities.     

Corporate Communications als integraler Wert-schöpfungsprozess

Zusammenfassungen  Die Kommunikation gewinnt weiter an Relevanz für den Unternehmenserfolg. Die Hauptursache dafür ist eine ver?nderte Erwartungshaltung der ?ffentlichkeit. Dieser Wandlungsprozess fordert innovative Managementmodelle und eine neue Rolle der Kommunikationskultur. Herausforderungen entstehen dabei auf normativer, strategischer und operativer Ebene. M. A. Boris Lyczek Doktorand am Institut für Medien- und Kommunikationsmanagement (MCM) der Universit?t St. Gallen (HSG) Prof. Dr. Miriam Meckel gesch?ftsführende Direktorin am Institut für Medien- und Kommunikationsmanagement (MCM) der Universit?t St. Gallen (HSG)     

Consortium Research

Design-oriented research in the Information Systems (IS) domain aims at delivering results which are both of scientific rigor and of relevance for practitioners. Today, however, academic researchers are facing the challenge of gaining access to and capturing knowledge from the practitioner community. Against this background, the paper proposes a method for Consortium Research, which is supposed to facilitate multilateral collaboration of researchers and practitioners during the research process. The method’s design is based on a self-evaluating design process which was carried out over a period of 20 years. The paper’s contribution is twofold. First, it addresses the science of design, since it proposes guidance to researchers for practitioner collaboration during the process of artifact design. Second, the method is an artifact itself, hence, the result of a design-oriented research process.     

Dairy productivity and climatic conditions: econometric evidence from South‐eastern United States

Climate change and food security have become critical issues in the agricultural policy agenda. Although global warming is expected to increase both the frequency and severity of heat stress on dairy cattle, there are very few economic studies focusing on this issue. This paper contributes to the literature by integrating the frontier methodology, commonly used in applied production economics, with heat stress indexes used by animal scientists but largely ignored by economists. Our econometric models are useful to quantify gross benefits expected from adaptation to climatic conditions represented by the Temperature Humidity Index (THI) and alternatively by the Equivalent Temperature Index (ETI). Stochastic production frontier analysis is used to measure technical efficiency for an unbalanced panel of 103 dairy farms located in Florida and Georgia. Five alternative model specifications are evaluated. The results reveal that both THI and ETI have a significant nonlinear negative effect on milk production. The climatic indexes when incorporated in the frontier specification absorb some of the output shortfall that otherwise would be attributable to inefficiency. The results indicate that using fans combined with sprinklers is an effective adaptation to offset output losses stemming from heat stress conditions.     

Competition and Industrial Organisation in Transition Markets: What Can We Derive from Empirical Studies?

Competition is the basic concept for both industrial organisation theory and institutional economics. Transition economies, including Russia, are natural laboratories allowing us to trace the emergence of competition, the influence of competition on the conduct of market participants, the relationship between competition and market structure and the institutional foundation of competition. This article provides a summary of the results of empirical studies in the above area. We try to explain some puzzles concerning the influence of competition on the conduct of Russian market participants and interpret the results in the framework of institutional and industrial economics. Overall, the results of empirical studies can be generalised as follows. Competition in Russian markets has been gaining momentum over the last 15 years. The results of empirical studies have confirmed the assumption that competition is an incentive for active restructuring of privatised enterprises. Many of the data collected are evidence in favour of the endogenous market structure approach. From the institutional viewpoint, the history of the evolution of Russia's transition economy shows interdependence between private property and competition: better protection of property rights is a precondition for the development of competition. At the same time, the model of corporate governance that allows the property rights of private owners to be protected in the Russian institutional environment restricts organisational diversity and therefore competition in Russian markets.     

Is There a Gap in the Gap? Regional Differences in the Gender Pay Gap

In this paper, we investigate regional differences in the gender pay gap both theoretically and empirically. Within a spatial model of monopsonistic competition, we show that more densely populated labour markets are more competitive and constrain employers’ ability to discriminate against women. Utilizing a large administrative data set for western Germany and a flexible semi‐parametric propensity score matching approach, we find that the unexplained gender pay gap for young workers is substantially lower in large metropolitan than in rural areas. This regional gap in the gap of roughly 10 percentage points remained surprisingly constant over the entire observation period of 30 years.     

Examining irrigation productivity in U.S. agriculture using a single-factor approach

Journal of Productivity Analysis - Typical single-factor productivity measures are easy to grasp and to develop but are misleading because they ignore other inputs used in the production process....     

Modern Rice Technologies and Productivity in the Philippines: Disentangling Technology from Managerial Gaps

Using cross‐sectional farm‐level data from 3,164 rice‐farming households in the Philippines, we measure the impact of modern rice technologies on farm productivity while disentangling technology gaps (the distance between production frontiers) from managerial gaps (differences in technical efficiency). To do so, we combine a recently developed stochastic production frontier framework with impact evaluation techniques to control for biases stemming from observables and unobservables. First, we find an adequate control group using propensity score matching to mitigate the effect of biases from observable variables. Then, we test for biases that might arise from unobserved variables using a stochastic frontier framework corrected for self‐selection. Finally, we estimate meta‐frontiers to assess productivity differences between adopters and non‐adopters. The analysis shows that the adoption of certified seeds has a significant and positive impact on productivity, efficiency and net income in rice farming.     

Strategic network development—the European perspective

A strategic network is a system of small or mid-size firms or, strategic business units, functional and regional units, suppliers, controlled firms, and partners to satisfy key stakeholders by optimizing specific core competencies and improving critical business processes.