Pitfalls of Normal-Gamma Stochastic Frontier Models

Although conceptually pleasing, normal-gamma frontier models lead to difficult estimation problems. It is shown here that unless the sample size reaches several thousands of observations the shape parameter of the gamma density is hard to estimate, and that this carries over to estimates of the stochastic frontier, the individual inefficiencies, and the allocation of the overall variance to the stochastic frontier and to the inefficiencies.     

Hölder continuity of the policy function approximation in the value function approximation

We show that given a value function approximation V of a strongly concave stochastic dynamic programming problem (SDDP), the associated policy function approximation is Hölder continuous in V.     

Approximating the distribution of the two-stage least squares estimator when the concentration parameter is small

This paper presents a new approximation to the exact sampling distribution of the instrumental variables estimator in simultaneous equations models. It differs from many of the approximations currently available, Edgeworth expansions for example, in that it is specifically designed to work well when the concentration parameter is small. The approximation is remarkable in that simultaneously: (i) it has an extremely simple final form; (ii) in situations for which it is designed it is typically much more accurate than is the large sample normal approximation; and (iii) it is able to capture most of those stylized facts that characterize lack of identification and weak instrument scenarios. The development leading to the approximation is also novel in that it introduces techniques of some independent interest not seen in this literature hitherto.     

The topography of metropolitan employment: Identifying centers of employment in a polycentric urban area

While it is well recognized that US metropolitan areas are polycentric, there is little consensus as to the appropriate method for identifying concentrations of employment within them. Existing methods suffer from strong assumptions about parametric form, misspecification, or reliance on local knowledge to calibrate model parameters. This paper introduces a new nonparametric method for identifying subcenters. Results indicate that this, more flexible, nonparametric approach yields greater accuracy with regard to both urban and suburban centers compared with other approaches. This approach should provide better data for the numerous topics that depend on the spatial accounting of employment within metropolitan areas.     

Empirical analysis of up-or-out rules for promotion policies

Previous research in the areas of tournaments, human capital, and learning theory have shown that promotion is a function of human capital, experience, ability, and wage growth. These variables were used to estimate a Cox regression using data from a single firm. The survival rates for a Cox regression and an up-or-out regression model are computed. The results suggest that certain up-or-out models are valid even when the firm does not have such a policy and show that an up-or-out procedure predicts the promotion and exit survival rates as well as a Cox regression.     

Legalistic organizational responses to catastrophic illness: The effect of stigmatization on reactions to HIV/AIDS

The HIV/AIDS epidemic has focused increased attention on catastrophic illnesses in the workplace, and because of the stigmas associated with HIV/AIDS, it raises three primary concerns for organizations: (1) organizational avoidance of legal sanctions and litigation; (2) the maintenance of organizational legitimacy; and (3) organizational protection of employee rights. Although many organizations adopt legalistic responses to cope with these concerns, the analysis presented in this article suggests that while legalistic approaches function well to protect organizational interests in terms of both legal liability and legitimacy, the are only partially able to protect employee rights. Drawing upon the limited literature on HIV/AIDS in the workplace, this article presents an agenda for future research on organizational responses to HIV/AIDS.     

Political Unionism and the Collective Objective in Economies of British Colonial Origin: The Cases of Jamaica and Trinidad

Abstract . Developing countries face an inconsistency between the need for more equitable distribution of income and wealth between classes and groups and the goals of an industrial relations system in which the trade unions have a systematic commitment to allied political parties to support them in exchange for some control over economic and social policy, or where unions compete with parties for popular support of certain social and political goals. This is designated as 'political unionism' in contradistinction to 'business unionism' where unions support any party whose overall strategy and objectives are most compatible. The analysis shows that ‘political unionism’ led, in Jamaica and in Trinidad and Tabago, to lags in growth which make industrial relations reform a necessity of an effective program of social change.     

Sources of Sectoral Growth in an Economy Wide Context: The Case of U.S. Agriculture

Growth in U.S. agriculture is linked to the non-farm economy through domestic terms of trade and factor market adjustments. With almost stable input growth, the relatively large contributions from growth in Total Factor Productivity (TFP) are passed on to intermediate and final consumers in the form of declining real prices for primary farm products. The resulting net growth in the real value of farm output (GDP) is relatively low (0.25% per annum). The decomposition of TFP suggests that public agricultural stock of knowledge and infrastructure are robustly associated with TFP growth, while spill-overs from private agricultural and economy wide research and development (R and D) are positive but, relatively small.     

Effects of demographic,experiential, and attitudinal factors on occupational sex stereotypes

The purpose of this study was to (a) compare the occupational sex stereotypes of 366 college students with those reported by Shinar in 1975, and (b) examine the relationships between demographic, experiential, and attitudinal variables and these occupational sex stereotypes. The results indicated a significant difference in occupational ratings from Shinar's study, with females' perceptions shifting more than males' perceptions. In addition, subjects' gender, tenure with female managers, and attitudes toward women as managers, were shown to be significant predictors of occuptational ratings. The implications of these findings for both employees and managers are then discussed.