A time-series analysis of the U.S. kidney transplantation and the waiting list: donor substitution effects

This article provides an econometric analysis of the relationship between live and deceased (cadaveric) kidney donations in the United States for the period 1992:IV–2006:II. Utilizing a cointegration representation and impulse-response analysis, we find strong evidence for deceased donor kidneys “crowding out” living donations, potentially undermining conventional efforts to reduce the shortage.     

Internet use and job search

Regression analysis augmented with propensity score methods is used to estimate the effect of Internet use on job search. The formal distinction between the unemployed and the discouraged is exploited, where both desire employment but the latter has ceased active job search. Results indicate broadband use at home or at public locations reduces the probability that the unemployed cease job search by over 50% relative to unemployed persons who do not use the Internet at all. The results suggest that even public connections (e.g., at libraries) in unserved and underserved areas may produce substantial social benefits.     

An Analysis of Bond Investment Company Initial Public Offerings: Past and Present

In this study, we investigate the return behavior of bond investment company initial public offerings (IPOs). Samples of these IPOs collected for the periods 1973–1976 and 1986–1987 exhibited negative returns to investors. The findings are in contrast to those usually reported for IPOs but are consistent with those recently reported for equity investment company IPOs.     

Limits to Altruism: Organ Supply and Educational expenditures

Current U.S. law prohibits compensation for cadaveric organ donation. The resulting organ shortage causes thousands of deaths per year. The primary tool currently relied on by the organ procurement industry to increase organ supply is educational spending aimed at both industry professionals and the general public. This article evaluates the effectiveness of such spending across a fairly comprehensive and unique sample of free-standing U.S. organ procurement organizations, controlling for the size of the organization, population demographics, and geographic region. The authors find no evidence that such spending is effective on the margin and conclude that the organ shortage is unlikely to be resolved by increased educational expenditures. (JEL I18 , I11 )     

Bill Averaging Programs and Consumer Behavior: Theory and Evidence

This paper examines consumer behavior under "bill smoothing," a common pricing program for utility customers where monthly payments are equalized over a one year cycle.First, we offer a theoretical model and conclude that bill smoothing is beneficial to consumers, but leads to exaggerated swings in usage over the yearly cycle. Second, we provide statistical evidence on the determinants of voluntary participation in bill smoothing programs by consumers; financial distress and high usage are less important than generally supposed. Finally, empirical tests of our theoretical model find that (i) participation increases overall consumption; and (ii) bill smoothing leads to exaggerated usage peaks and troughs, a result that could have implications for load management programs and general energy conservation.     

The case of the combative CFO

Minute Publishing Chairman and CEO Neil Harcum has a right to be proud of his new national newspaper, America Today. It has won three Pulitzer Prizes and attracted one million readers in just three years of publication. But, as CFO Peter Rawson points out, it's also losing $100 million a year and has broken Minute's 20-year string of earnings gains. In the process, the company has been split between two warring factions: one is backing Harcum and favors continuing the paper. The other agrees with Rawson that the project must be stopped. The board of directors has been assembled to decide the newspaper's fate. In his speech to the board, Rawson says it's time to cut Minute's losses and put an end to America Today. And Wall Street agrees. Several brokerage houses have taken Minute off their buy lists, and rating agencies are about to down-grade the company's debt. "America Today is not a good investment," Rawson argues. "Certainly, it isn't in keeping with our commitment to deliver maximum value to our shareholders." But Harcum thinks Rawson is way out of line. "We cannot allow our bean-counters to set policy," he claims. Harcum sees the newspaper as a product of the future that has created its own market. It's only a matter of time before America Today attracts enough advertising to put it in the black. He has a successful track record, and he doesn't want the board to lose faith in him now.(ABSTRACT TRUNCATED AT 250 WORDS)     

Governance and portfolio flows in Sub-Saharan Africa

This study investigates the relationship between the six World Governance Indicators and foreign portfolio investment in 33 Sub-Saharan African (SSA) countries over the years of 1998–2015. GMM analysis finds that portfolio inflows are most significantly attracted by the ability of SSA governments to implement policies effectively, strengthening the quality of institutions, and controlling corruption; but are deterred by the regions poor record of the rule of law and political stability.     

Estimating Multiproduct Cost Functions Over Time Using a Mixture of Normals

This article proposes the use of finite mixtures of probability distributions to estimate cost functions. The mixture technique allows for the simultaneous existence and unobservability of multiple technologies of production. Technology switching by firms and conventional technical change can be studied directly. We illustrate the technique on a large sample of U.S. Savings and Loan companies, and find strong evidence of multiple technologies. We compare the mixture results to conventional stochastic cost frontier and thick frontier models, and highlight their differences.