Identifying relevant and irrelevant variables in sparse factor models

This paper considers factor estimation from heterogeneous data, where some of the variables—the relevant ones—are informative for estimating the factors, and others—the irrelevant ones—are not. We estimate the factor model within a Bayesian framework, specifying a sparse prior distribution for the factor loadings. Based on identified posterior factor loading estimates, we provide alternative methods to identify relevant and irrelevant variables. Simulations show that both types of variables are identified quite accurately. Empirical estimates for a large multi‐country GDP dataset and a disaggregated inflation dataset for the USA show that a considerable share of variables is irrelevant for factor estimation.     

Efficient Transfer of Aging Provisions in Private Health Insurance

In German-style private health insurance contracts, aging provisions are used to flatten premium profiles. An individual would like to change insurer if she perceives a low service quality. The first-best optimum is characterized by provision transfers upon insurer changes which are higher for high risks and may be negative for low risks. Should the actual risk status not be verifiable, provision transfers have to be uniform. Efficient transfers will equalize consumption across periods and states if high risks are deterred from switching. Otherwise, the optimum transfer balances the distortion of incentives for high-risk and low-risk individuals.     

Interactive unawareness

The standard state-spaces of asymmetric information preclude non-trivial forms of unawareness (Modica and Rustichini (Theory Decision 37 (1994) 107–124); Dekel, Lipman and Rustichini (Econometrica 66 (1998) 159–173)). We introduce a generalized state-space model that allows for non-trivial unawareness among several individuals, and which satisfies strong properties of knowledge as well as all the desiderata on unawareness proposed this far in the literature.     

Point De Vue Fadn: Buttress for Farm Policy or a Resource for Economic Analysis?

FADN: Buttress for Farm Policy or a Resource for Economic Analysis? We argue that the Farm Accountancy Data Network (FADN) is capable of much more than it currently achieves and that it has been greatly under‐utilised for policy analysis by economic researchers. We illustrate graphically some of the wider possibilities offered by FADN beyond its traditional role as a buttress for farm policy Farm incomes differ enormously between farms and differences within a member state are often more important than differences between member states. The dataset allows us to make differences explicit. It is possible to analyse the composition of farm incomes, for example the significance of subsidies amongst different farm types and farming systems. Some national FADN datasets also permit classification of farm households according to the relative importance of farm and non‐farm incomes and allow us to examine the impact of income composition on, for example, investment behaviour, FADN data can be used for ex‐ante as well as ex‐post policy evaluations and we illustrate with an example of the impact of different models for implementing the Single Farm Payment in Germany. We believe that certain enhancements to the dataset are possible to improve further its potential for research support, for example by including more non‐agricultural income sources in the European FADN. Le RICA:instrument d'appui à la politique agricole, ou ressource pour l'analyse économique? Le réseau d'informations comptables agricoles (RICA) dispose d'un potentiel très supérieur à son usage actuel et il est fortement sous‐utilisé par les chercheurs qui s'intéressent à l'analyse économique des politiques agricoles. On illustre ici, à l' aide de quelques graphiques, quelques‐unes des possibilityés d'élargissement de l'usage du RICAau‐delà de son rôle habituel d'appui à la politique agricole. Les revenus agricoles different fortement d'une exploitation à l'autre et les disparités intra‐Etats membres sont souvent plus importantes que les disparités inter‐Etat Le RICA permet de visualiser ces différences. Il est possible d'analyser la formation du revenu agricole, par exemple le rôle des subventions d'un système de production ou d'un type d'exploitation à l'autre. Pour certains pays, il est possible de trier les ménages agricoles en fonction de l'importance de leurs revenus non agricoles, ce qui permet par exemple l'étude des relations entre revenus extérieurs et investissements. Les données du RICA peuvent être utilisées ex ante pour prévoir les conséquences d'une mesure politique ou ex post pour en évaluer les effets. Ce point est illustré par un exemple qui consiste àétudier l'impact des effets du ‘paiement unique’ sur différentes exploitations types en Allemagne. Il devrait être possible d'ajouter des améliorations supplémentaires au stock de données existantes pour le rendre encore plus utile à la recherche, en particulier en incluant systématiquement les relevés de revenus non agricoles dans le RICA européen. INLB: Stützpfeiler der Landwirtschaftspolitik oder Ressource für wirtschaftliche Analysen? Wir vertreten den Standpunkt, dass das Informationsnetz landwirtschaftlicher Buchführungen (INLB) weit mehr als zur Zeit zu leisten vermag und dass Wirtschaftsforseher es für Politikanalysen nur unzureichend genutzt haben. Wir erläutern mit Hilfe von Grafiken einige der weiteren Möglichkeiten von INLB, die über die traditionelle Rolle als Stützpfeiler der Landwirtschaftspolitik hinaus gehen. Die landwirtschaftlichen Einkomrnen variieren sehr von Betrieb zu Betrieb, und Unterschiede innerhalb eines Mitgliedstaates sind oftmals von größerer Bedeutung als Unterschiede zwischen den Mitgliedstaaten. Der Datensatz ermöglicht es uns, diese Unterschiede zu verdeutlichen. Es ist möglich, die Zusammensetzung der landwirtschaftlichen Einkomrnen zu analysieren, beispielsweise die Bedeutsamkeit von Subventionen zwischen verschiedenen Betriebstypen und ‐systemen. Einige nationale INLB‐Datensätze ermöglichen es uns zudem, landwirtschaftliche Haushalte gemäß der relativen Bedeutung von landwirtschaftlichen und außerlandwirtschaftlichen Einkomrnen zu klassifizieren, und die Auswirkungen der Zusammensetzung der Einkomrnen beispielsweise auf das Investitionsverhalten zu untersuchen. Die INLB‐Datensätze können sowohl ex‐ante als auch ex‐post für Politikbewertungen herangezogen werden, und dies erläutern wir anhand des Beispiels, welches die Auswirkungen verschiedener Alternativen bei der Umsetzung der einheitlichen Betriebsprämie in Deutschland darstellt. Wir sind der Auffassung, dass bestimmte Verbesserungen am Datensatz möglich sind, um das Potenzial des INLB zur Unterstützung von Forschungsarbeiten weiterzu verbessern, beispielsweise durch die Aufnahme weiterer außerlandwirtschaftlicher Einkommensquellen in das europäische INLB.     

The value of health interventions: evaluating asthma case management using matching

Despite large public investments in asthma interventions, there are few rigorous assessments of these programmes and little understanding of what comprises an effective intervention. There is a lack of appropriate data, little technical support is provided, and the programs themselves have little incentive to conduct these analyses. In this study, we apply optimal full matching using propensity scores to estimate the impact of an asthma intervention programme across a range of health outcomes. Our participation model is derived using the Deletion, Substitution and Addition (DSA) algorithm, a method used in epidemiology for model selection. We find that the asthma programme in question has no significant effect on participants that distinguishes them from matched nonparticipants, but it is not clear whether this is due to the effectiveness of the programme, heterogeneity of effects or barriers outside the programme's control. Our findings do show how current programmes could be modified to increase their effectiveness and better inform future research.     

Introduction to the Special Issue: Bordering the Middle East

ABSTRACT

Seven years after the beginning of the Syrian uprising and thirteen years after the transformation of Iraq into a federal state, one can notice the permanence of the nation state borders in the Middle East despite the worst prediction of a general breakdown of the colonial lines. But the Middle East, like no other region in the world, seems to face such a challenge to the state border system with the lasting internal fragmentations in Syria, Yemen, Libya and Iraq. In reaction to this threat, governments erected sophisticated and costly fences at the edge of the states, transforming the regional landscape, raising issues of states’ sovereignty and regimes’ legitimacy; they are also highlighting the existence of the local communities (religious, ethnic or tribal) that are largely straddling across the international borders, defining alternative boundaries of belonging. This special issue intends to deal with two main questions: how do borders influence actors’ identity building? And how do identity politics at the local or national level re/define borders and boundaries? Six case studies stemming from intensive fieldwork research provide insights on state-community relationships through the lens of border issues in the Machreq and the Gulf areas thanks to different disciplinary approaches. Through IS territorialisation, Jordanian Bedouins, Kuwait’s national identity representations, Israel’s Lebanese residents, Oman’s construction of political sovereignty and representations of Gulf and Middle Eastern borders, authors highlight multi-scalar processes of identity building and representations through the bordering of the national, tribal or religious group.     

In the air again: frequent flyer relationship programmes and business travellers' quality of life

This research explores whether frequent flyer programmes somehow add to the quality of life of the frequent business traveller (defined in this study as business flyers who had flown round trip 26 or more times in the past 12 months). A questionnaire was mailed to subscribers of a newsletter for members of frequent air and hotel programmes. Results indicated that frequent flyer programmes contribute positively to frequent business travellers' lifestyles and to their quality of life, perhaps by countervailing some of the negative aspects of frequent business travel. Copyright © 2003 John Wiley & Sons, Ltd.     

Achieving globalization of AACSB accounting programs with faculty-led study abroad education

This paper is motivated by recommendations from the American Assembly of Collegiate Schools of Business (AACSB), the Pathways Commission, and NAFSA: Association of International Educators to increase global exposure in the accounting curriculum. Some schools have responded to these demands by offering short-duration, faculty-led, study abroad programs. We explain how these programs play a vital role in fulfilling the educational advisory boards’ calls to internationalize the accounting curriculum and investigate the extent to which schools are incorporating these programs. This paper provides a review of the details from our hand-collected data on the short programs that are offered by AACSB-accredited institutions. We integrate the information from our collection of data on existing programs, prior literature, pronouncements from educational advisory boards, and select faculty interviews to offer an analysis of the course design and travel considerations for schools contemplating such an opportunity for students in their programs.