Nonparametric maximum likelihood estimation in a non locally compact setting

Maximum likelihood estimation is considered in the context of infinite dimensional parameter spaces. It is shown that in some locally convex parameter spaces sequential compactness of the bounded sets ensures the existence of minimizers of objective functions and the consistency of maximum likelihood estimators in an appropriate topology. The theory is applied to revisit some classical problems of nonparametric maximum likelihood estimation, to study location parameters in Banach spaces, and finally to obtain Varadarajan’s theorem on the convergence of empirical measures in the form of a consistency result for a sequence of maximum likelihood estimators. Several parameter spaces sharing the crucial compactness property are identified. This research was supported by grants from the National Sciences and Engineering Research Council of Canada and the Fonds FCAR de la Province de Québec.     

The quality of work life — the volvo experience

Volvo is convinced that there are great possibilities to create more effective job design solutions. The new strategy on production technology and works organization was developed in the early 70s. Since then the concept of flexible technology, team work and a spirit of collaboration has diffused to all the different product groups.The base for this development must be new technology, the capability and knowledge among the employees combined with a managerial approach that mobilizes the potential of good working ability. The changed directions both include moving toward craftsmanship in assembly operations as well as automation in manufacturing whenever feasible.Berth Jönsson, Corporate Development, Volvo.     

The choice of ADRs

We study the determinants of a firm’s decision to issue one of the four available ADR programs (Level I, Level II, Level III, and Rule 144A). We find that the firm’s attributes (size, income, asset growth, leverage, privatization, ownership structure, and country-of-origin) and the firm’s home-country institutional variables (accounting rating and legal protection of minority shareholders) condition this choice. We also examine the issuing activity and the determinants of the ADR choice before and after the enactment of the Sarbanes–Oxley (SOX) Act. Following this structural change, we provide evidence of a reallocation between ADR programs. Compared to the pre-SOX period, firms from emerging markets, and those from countries with weak legal protection of minority shareholders, are more likely after SOX to choose Rule 144A and Level III, respectively.     

Liberalization, corporate governance and the performance of privatized firms in developing countries

This paper seeks to provide an answer to the following question: when and how does privatization work? Using a sample of 230 firms headquartered in 32 developing countries, we document a significant increase in profitability, efficiency, investment and output. Our analysis shows that the changes in performance vary with the extent of macro-economic reforms and environment, and the effectiveness of corporate governance. In particular, economic growth is associated with higher profitability and efficiency gains, trade liberalization is associated with higher levels of investment and output, while financial liberalization is associated with higher output changes. Further, control relinquishment by the government is a key determinant of profitability, efficiency gains and output increases. Finally, we find higher improvements in efficiency for firms in countries in which stock markets are more developed and where property rights are better protected and enforced. These results for a sample of developing countries differ from those reported in a contemporaneous study by D'Souza et al. [D'Souza, J., Megginson, W.L., Nash, R.C., 2001. Why do privatized firms improve performance? Evidence from developed countries. Unpublished working paper. University of Oklahoma] which focuses on developed countries. These diverging findings suggest that privatization in developing countries indeed obeys to particular constraints and has a dynamic of its own.     

US cross-listing and corporate disclosure policy

We investigate whether cross-listing in the US contributes to impound more earnings information into stock prices. Our results indicate that US exchange cross-listings are not associated with more future earnings news reflected in current prices, in accord with the view that such mechanism does not improve the information environment of non-US firms. This main finding is robust to many aspects of our methodology.     

The transfer paradox in a non-walrasian context

Conclusion This paper has illustrated the idea that Keynesian market inefficiencies could imply some paradoxical effects of the transfer. Therefore, it has something common with the Brecher and Bhagwati [1982] article on paradoxical effects in presence of internal inefficiencies. It is important to point out that our results on paradoxical effects are based on an asymmetry of markets: such an effect can only appear when only one of the two markets is Walrasian, and the other is Keynesian. We have also found that any improvement for the transferor will presumably imply a deterioration for the transferee. The main result of this paper is therefore to cast doubts on the theoretical consistency of global Keynesian policy proposals. Even if a massive transfer towards LDCs were to improve the real income of developed countries through Keynesian mechanisms, it would also presumably have an adverse effect on LDCs.

---

Zusammenfassung Das Transfer-Paradoxon in einer nicht-walrasianischen Welt - Der Aufsatz erl?utert die Idee, da\ keynesianische Marktunvollkommenheiten einige paradoxe Transferwirkungen implizieren. Hervorzuheben ist, da\ die Ergebnisse auf einer Asymmetrie der M?rkte beruhen. Eine solche Wirkung kann n?mlich nur dann eintreten, wenn einer der beiden M?rkte walrasianisch, der andere keynesianisch ist. Es hat sich herausgestellt, da\ jede Verbesserung für den Transfergeber vermutlich eine Verschlechterung für den Transfernehmer mit sich bringt. Dementsprechend ist das Hauptergebnis des Aufsatzes, an der theoretischen Konsistenz von globalen wirtschaftspolitischen Vorschl?gen keynesianischer Art Zweifel anzumelden. Selbst wenn ein massiver Transfer zugunsten von Entwicklungsl?ndern das Realeinkommen in Industriel?ndern über keynesianische Mechanismen verbessern sollte, dürfte er nachteilige Auswirkungen auf die Entwicklungsl?nder haben.

---

Résumé Le paradoxe de transfert en contexte non-Walrasien. - Dans cet article l’idée est illustrée que les inefficiences de marché à la Keynes pourraient impliquer quelques effets paradoxaux du transfert. Il est important de souligner que les résultats basent sur un asymétrie des marchés: un tel effet appara?t seulement si un des deux marchés est Walrasien et l’autre Keynésien. L’auteur démontre que chaque amélioration pour le donneur implique probablement aussi une détérioration pour le bénéficiaire. C’est pourquoi le résultat le plus important de cet article est de mettre en doute la consistance théorique des propos globaux de la politique Keynésienne. Même si un transfert massif en faveur des PVD augmenterait le revenu réel des pays développés par des mécanismes Keynésiens il aurait avoir probablement aussi un effet négatif sur les PVD.

---

Resumen La paradoja de la transferencia en un contexto no-walrasiano. - En este trabajo se ilustra la idea de que ineficiencias de mercado keynesianas podrían implicar algunos efectos paradójicos de la transferencia. Es importante hacer notar que los resultados sobre los efectos parad⤠cos están basados en la asimetría de mercados: tal efecto puede aparecer solo cuando uno de los mercados es walrasiano y el otro keynesiano. Asimismo encontramos que cualquier mejora para quien lleve a cabo la transferencia presumiblemente implica un deterioro para el receptor. El resultado más importante de este trabajo es que existen dudas sobre la consistencia teórica de propuestas keynesianas globales de política. A pesar de que una transferencia masiva en favor de los países en desarrollo pueda aumentar el ingreso real de los países desarrollados através del mecanismo keynesiano, también tendrá efectos adversos sobre los países en desarrollo.

     

The euro and the monetary union

The Eurosystem established a single monetary policy and has the three guiding principles of independence, transparency, and decentralization. These three principles helped to successfully formulate and implement the euro on 1 January 2002. Major criticisms against establishment of the euro failed to come true and, in fact, the euro has quickly become a major currency in the world. Challenges facing continued success of the euro include structural reforms, financial stability, and the accession of new members to the EU and EMU. TheRobert A. Mundell Distinguished Address presented at the Fifty-Third International Atlantic Economic Conference, March 13–17, 2002, Paris, France.