Distribution-free tests for comparing several treatments with a control

Abstract  In this paper we propose distribution-free treatments versus control tests for the one- and two-way classifications. The null distribution properties are shown to be equivalent to those of well-known statistics for which critical values have been extensively tabled. Asymptotic relative efficiencies with respect to corresponding normal theory competitors are derived and optimal designs for the allocation of experimental units to the treatments and control are obtained.     

Are robust estimation methods useful in the structural errors-in-variables model?

Summary In this paper it is investigated whether robust estimation procedures for the parameters of a regression model are also applicable when the observations are generated by the errors-in-variables model. Specifically, attention is paid to bounded-influence estimators, i.e. estimators that are constructed in such a way that the influence of a single observation on the outcome of the estimator is bounded. Both the classical errors-in-variables model and models with contaminated observational errors are considered.The authors are indebted to a referee for his valuable comments on an earlier version of this paper.     

The occurrence of outliers in the explanatory variable considered in an errors-in-variables framework

Summary The problem of estimating the slope of a linear relationship between two jointly normally distributed random variables is considered when outliers may occur in the explanatory variable. It will be studied as a special case of an errors-in-variables problem where the explanatory variable is measured which a nonnormally distributed error. In this more general model and under certain conditions a consistent estimator can be given with a normal limiting distribution. Applications to cases of outliers in the explanatory variable will be presented.     

Antonio Serra: A Neglected Herald of the Acquisitive System

A bstract . The spirit of capitalism arose not from a change in religion, as Max Weber claims, but from a break in the philosophic tradition that was initiated by Machiavelli , whose economic consequences were spelled out by the Neapolitan Antonio Serra in a path breaking treatise of 1613. Serra called for an active government promoting manufacturing enterprises that would enjoy ever advancing technology and indefinite declines in unit costs. A newly-structured market economy would guarantee an ever-growing consumer basket in an acquisitive system centered in self advantage, national and individual, pursued in independence of traditional moral restraints on avarice. Writing in jail, Serra advances his new and anti-scholastic ideas with great discretion for fear of persecution by political and ecclesiastical authorities who were, at the time, against innovation of all kinds.     

Nonparametric tests for optimizing behavior in production: Extensions to unobservable factors and superadditive technology

This paper develops two new nonparametric tests for optimizing behavior in production. The first is a test for consistency of observed data with cost minimization from a superadditive technology. Superadditivity of technology plays a key role in the theory of industry structure and natural monopoly. The second is an extension of Varian's profit maximization test. When the data fails Varian's test, one possible explanation is technical/allocative inefficiency. However, another possibility is the presence of unobservable, untradeable, and varying endowments of some factor of production. This paper develops a test that allows for such an ordinally measurable factor and notes its correspondence to the Afriat Theorem for utility maximization in demand analysis.The refereeing process of this paper was handled through R. Banker.     

The brain drain and education opportunity in less developed countries

The impact of the brain drain on the educational systems of the countries of origin is examined, with particular reference to governmental decisions concerning education subsidies and the market for educational services. Two hypothetical cases are considered, one in which governments increase expenditures for education in the presence of a widespread brain drain, the other in which they decrease such expenditures.     

The current state of development sociology in South Africa and its contribution to development studies

Like sociology, development sociology is currently torn between several perspectives, each of which accentuates a completely different view of the discipline. The systems, conflict and humanist perspectives are providing dominant theoretical approaches in the search for an appropriate theory. It is maintained that the current theoretical controversy impedes the development of such a theory.

Systems theory corresponds with neo‐evolutionary development theories and these are largely influenced by the works of Talcott Parsons. Neo‐Marxist development theory, on the other hand, follows the general argument of conflict theory, the accent being on the dialectic relationship between development and underdevelopment. Development theory related to humanism is still in an embryonic stage.

A plea is made for an attempt to design a Weberian‐based orientation which will embrace the current perspectives in order to develop a workable alternative for Southern Africa.     

A model of the Dutch labour market (AMO-K)

Summary So far, the labour market has not received any special attention from macro-econometric model builders. In this article an attempt has been made to describe the labour market in detail, paying attention to such important phenomena as the friction between labour supply and demand, the heterogeneity of labour, the dependence of labour supply on the labour-market situation, the Phillips mechanism and the impact of real wages on labour demand. To make it suitable for policy simulations, the model has been extended to a complete macro-econometric model, taking account of the fact that both labour and capital limit the production possibilities.This paper summarises an extensive Dutch report on the construction of a model for the Netherlands labour market. The title of the original report is AMO-K: Een arbeidsmarktmodel met twee categorieën arbeid; (AMO-K, A labour-market model with two categories of labour) ; it was published by the Netherlands Economic Institute (NEI) in Rotterdam in the so-called Olive Series, 1982-2, pp. 403ff. Some details of the model presented in that report were changed after its publication; see G. den Broeder, AMO-K 81-12, Tussenrapport betreffende de verdere ontwikkeling van het arbeidsmarktmodel (Interim report on the further development of the labourmarket model), Rotterdam, September 1983. Since then, only minor changes have been carried through. The model reproduced in this paper is the modified version. The model was developed within the National Programme of Labour-Market Research (NPAO) (now defunct), the NPAO organisation having granted a commission to the NEI in Rotterdam.     

International migration versus foreign investment in the presence of unemployment

"This paper extends the standard (two-factor, one-good) model of international factor movements, to include unemployment due to a minimum-income guarantee within the capital-abundant country. From this country's perspective, we establish important departures from previous (full-employment) results. Most notably, our analysis shows that: (1) free factor mobility is worse than no mobility; (2) the optimal degree of labour migration is zero; and (3) national welfare can always be maximized by an optimal flow of capital. The analysis is then extended to examine: (1) illegal migration; (2) subsidization of employment; and (3) alternative views of unemployment."     

Book Reviews

Richard Robison, Indonesia: The Rise of Capital, Allen and Unwin, Sydney, 1986 pp. xxv + 425. Indexed. $19.95.

W.L. Korthals Altes, Changing Economy in Indonesia: Volume 7: Balance of Payments, 1822–1939, Amsterdam: The Royal Tropical Institute. pp. 167.

Trade Statistics, Java, 1823–73: Trade Statistics, Indonesia 1874–1937. Mededeelingen van het Centraal Kantoor voor de Statistiek nos 160 and 161

Om Prakash, The Dutch East India Company and the Economy of Bengal, 1630–1720, Princeton: Princeton University Press, 1985 pp. xii + 291, map, tables. graphs, glossary, index. Cloth $38.50.

Sediono M.P. Tjondronegoro, Social Organization and Planned Development in Rural Java, Singapore, Oxford University Press for the Institute of Southeast Asian Studies, 1984, pp. xv + 326.

A. Fujimoto and F. Matsuda (eds), An Economic Study of Rice Farming in West Java, Tokyo: NODAI Research Institute, Tokyo, University of Agriculture, 1986.

A. Fujimoto and T. Matsuda (eds), A Comparative Study of the Structure of Rice Productivity and Rural Society in Southeast Asta Two Village Studies in Indonesta and Thailand, Tokyo: University of Agriculture, 1985. Reviewed by C.L J. van der Meer (1986) Bulletin of Indanesian Economic Studies, 22(2) pp. 124–27

David Jenkins, Suharto and His Generals: Indonesian Military Politics, 1975–1983, Ithaca: Cornell Modern Indonesia Project, Monograph Series No. 64, 1984, pp. xiii + 280. US$12.50. David Bourchier, Dynamics of Dissent in Indonesia Sawito and the Phantom Coup, Ithaca: Cornell Modern Indonesia Project, Interim Reports Series, 1984, pp. 128. US$9.00.

Linda G. Martin (ed), The ASEAN Success Story: Social, Economic, and Political Dimensions, East-West Center, distributed by the University of Hawaii Press, Honolulu, 1987, pp. xviii + 253. $15.00.

Mubyarto and Edy Suandy Hamid (eds), Kredit Pedesaan di Indonesia, Badan Penerbit Fakultas Ekonomi, U.G.M., 1986 pp, 160.

Ron Hatley, et al., Other Javas Away from the Kraton, Melbourne: Monash University, 1984, pp. 60.

K.S. Nathan and M. Pathmanathan (eds), Trilateralism in Asia: Problems and Prospects in US-Japan-ASEAN Relations, Antara Book Company, Kuala Lumpur, 1986, pp. xviii + 205. $18.00 (cloth): $12.00 (paper).