An econometric method of correcting for unit nonresponse bias in surveys

Past approaches to correcting for unit nonresponse in sample surveys by re-weighting the data assume that the problem is ignorable within arbitrary subgroups of the population. Theory and evidence suggest that this assumption is unlikely to hold, and that household characteristics such as income systematically affect survey compliance. We show that this leaves a bias in the re-weighted data and we propose a method of correcting for this bias. The geographic structure of nonresponse rates allows us to identify a micro compliance function, which is then used to re-weight the unit-record data. An example is given for the US Current Population Surveys, 1998–2004. We find, and correct for, a strong household income effect on response probabilities.     

Tourism and rural development in Maputaland: A case‐study of the Kosi Bay area

There is often a vast difference between the needs of the tourism industry and tourists on the one hand and of the local inhabitants of developing tourist destination areas — especially in Third World, rural settings — on the other hand. This article describes some of the problems associated with tourism development in general and discusses tourism development in terms of the psychological saturation effects it can have on local inhabitants. The authors state that tourism could enhance the development of rural areas on an ecologically and economically viable basis, and improve the quality of life of the rural black. They further state that it is possible to reconcile the needs and demands of locals and those of tourism through adequate planning and the development of effec‐tive intra‐ and intercultural communication systems. Using the Kosi Bay area of the Maputaland region in northern Natal as a case‐study, specific suggestions are offered about ways in which this process of need reconciliation can be built into tourism plan‐ning and into the development of a meaningful infrastructure for tourism.     

Macroeconomic shocks, structural change and real exchange rates: Evidence from historical data

We present empirical evidence on the forces driving real exchange rates in the long-run. Using data from the US, UK and Italy across different exchange rate regimes, we find support for the hypothesis that productivity and fiscal shocks matter. However, in some cases fiscal shocks cause depreciations, likely triggered by the monetary accommodation of fiscal shocks. We also find that the traditional Harrod–Balassa–Samuelson effect of productivity on real exchange rates is reversed in some cases, which confirms the importance of the distributive sector in driving productivity gains.     

Ex-post Analysis of Mobile Telecom Mergers: The Case of Austria and The Netherlands

Recently there has been an increased attention towards the ex-post evaluation of competition policy enforcement decisions and in particular merger decisions. In this paper we study the effects of two mobile telecommunication mergers on prices. We apply a standard difference-in-differences approach which is widely used in the literature on ex-post evaluation of mergers. For the Austrian T-Mobile/tele.ring merger, we conclude that after the acquisition (for which remedies were imposed) prices in Austria did not increase relative to the considered control countries. For the Dutch T-Mobile/Orange merger, we observe an increase in the mobile tariff prices in the Netherlands in the analysed period, relative to the control countries. We cannot firmly establish whether this price increase was exclusively caused by the T-Mobile/Orange merger or in part by possible price effects brought about by the KPN/Telfort merger consummated two years earlier in the Netherlands. However, we believe that such price increase could be linked to the structural changes brought by both KPN/Telfort and T-Mobile/Orange mergers together.     

The long-run dynamics of product and process innovations for a multi-product monopolist

This paper introduces the dynamical framework which combines product and process innovations. The model contributes to the theoretical literature on innovations in two ways. First, it permits for the simultaneous dynamics of both types of innovations which is rarely considered in the literature. Second, the products being generated by the innovations are heterogeneous in their investment characteristics. This allows for the formation of the dynamic interdependency between both types of innovations. As a result, the steady-state levels of process innovations for each product are different and influence the dynamics of product innovations in turn.     

Accounting for missing data in M-estimation: a general matching approach

This paper addresses M-estimation of conditional mean functions when observations are missing at random. The usual approach of correcting for missing data, when the missing data mechanism is ignorable, is inverse probability weighting (IPW). An alternative semiparametric M-estimator which involves local polynomial matching techniques is proposed and its asymptotic distribution is derived. Like IPW, the proposed estimation approach has a double robustness property for the estimation of unconditional means. Monte Carlo evidence suggests slightly better finite sample properties of the semiparametric M-estimator relatively to IPW. A version of the proposed estimator is applied to estimate the impact of noncognitive skills on wages in Germany for two different educational treatment regimes.     

Unemployment,inflation and price expectations with empirical results for Belgium

This article deals with the question whether there exists a trade-off between inflation and unemployment in the short as well as in the long run in the Belgian economy. A wage-price model incorporating the phenomenon of price expectations is presented. The model is verified empirically and an inquiry is made into the dynamic characteristics of Belgium's wage-price nexus. The main results of the paper are first that a positive answer may be given to the question we asked ourselves and secondly, that the possibility of explosive behaviour of wage and price changes is to be excluded.     

Analyzing the Interaction of Monetary and Fiscal Policy: Does Fiscal Policy Play a Valuable Role in Stabilisation?

This paper provides an overview of recent papers which use estimatedNew Keynesian models to study the extent to which fiscal policycan be used to stabilize the economy. We use a variety of differentNew Keynesian models, estimated on data for both the US andfor the Euro area, and highlight the diverse transmission channelsthrough which fiscal policy acts in these models. Although wefind that fiscal policy can provide a useful complement to monetarypolicy, especially in models where consumers have finite horizons,there are important limitations to the value added of fiscalpolicy. (JEL E58, E62, E63)     

History of Thought as Ceremonial Genealogy: The Neglected Influence of Herbert Spencer on Thorstein Veblen

Large corporations are invariably structured as formal institutions, and this formality is reflected in organizational charts. These charts depict a multilevel managerial hierarchy of authority within the organization typified, in the simplest case, by a pyramid. Many economic and business researchers attribute formality to a desire for greater efficiency, although I do not take this position in the present paper. Instead, I agree with researchers who connect formality with organizational legitimacy. I further argue that personal interests are at work in bigness and formalization. Top managers are motivated by desire for power and prestige. Formality furthers these objectives by rigidly fixing relations and ranks within the organization. Widespread belief in efficiency and legitimacy converge with personal motives to encourage and entrench formality. Corporate size and structure are seen as having deleterious effects on employees and society at large. But they also have some negative impacts on those at the top.     

Exploring the effect of environmental orientation on financial decisions of businesses at the bottom of the pyramid: Evidence from the microlending context

Existing research has accumulated substantial evidence on the effect that an environmental orientation has on businesses' economic performance. Yet this research does not cover small businesses from bottom‐of‐the‐pyramid (BOP) markets. In fact, despite increasing interest in research on BOP markets, the effect of environmental orientation on the financial decision‐making of small businesses from BOP markets has gone largely unexplored. Using a large multicountry data set from a microlending platform, we investigate how the environmental orientation of BOP businesses impacts their financial decisions related to microlending, which ultimately shapes their economic performance. The results indicate that an environmental orientation necessitates BOP businesses to request a higher level of financial capital and ask for longer time to pay it back. Surprisingly, environmental orientation increases the odds of BOP businesses paying back the borrowed capital. These results show that environmental orientation gives rise to both challenges and opportunities for sustainable development in BOP markets.