Identification and information in monotone binary models

This paper considers binary response models where errors are uncorrelated with a set of instrumental variables and are independent of a continuous regressor v$v$, conditional on all other variables. It is shown that these exclusion restrictions are not sufficient for identification and that additional identifying assumptions are needed. Such an assumption, introduced by Lewbel [Semiparametric qualitative response model estimation with unknown heteroskedasticity or instrumental variables. Journal of Econometrics 97, 145–177], is that the support of the continuous regressor is large, but we show that it significantly restricts the class of binary phenomena which can be analysed. We propose an alternative additional assumption under which β$\beta$ remains just identified and the estimation unchanged. This alternative assumption does not impose specific restrictions on the data, which broadens the scope of the estimation method in empirical work. The semiparametric efficiency bound of the model is also established and an existing estimator is shown to achieve that bound. The efficient estimator uses a plug-in density estimate. It is shown that plugging in the true density rather than an estimate is inefficient. Extensions to ordered choice models are provided.     

FDI performance: a stochastic frontier analysis of location and variance determinants

The opening up process of the eastern European countries was marked by greater integration of FDI with their western neighbouring countries. Using the single-step ML approach to stochastic frontier analysis, the location and variance determinants of FDI are estimated using the knowledge capital (KK) model framework. The findings, based on a panel of bilateral FDI stocks from 10 western to 10 eastern European countries over the 1996–2007 period, suggest FDI is determined by both horizontal and vertical motives while the process of liberalization and infrastructural developments significantly reduces the variance of FDI. In using a stochastic frontier specification of the KK model, the efficiency of FDI performance is identified relative to maximum levels. The bilateral efficiency scores suggest a mixed performance, indicating scope to improve the efficiency of FDI.     

Immigration as industrial strategy in American meatpacking

Abstract

This paper examines the connections linking recent changes in Latino migration, the American meatpacking industry, and American immigration policy. As the meatpacking industry has vertically integrated and shifted to rural non-union areas throughout the South, it has grown increasingly dependent on short-term low-skilled employees. This process can be understood as the industrialization of meatpacking, where profitability depends on continuous high-throughput production. To succeed, the industrialization of meatpacking requires a large pool of easily replaceable labor that has no control over the pace work on of the shop floor. At the same time, as immigrants have been drawn to these new company towns, American immigration policy has turned increasingly towards border enforcement. We argue that the presence of illegal immigrants within the factories reduces the bargaining power of shop workers and increases employer control. Most studies of immigration have focused on the supply of migrant labor, the immigrants attracted to higher paying jobs. We argue that valuable insight is gained by looking at the manufacturers' demand for cheap labor and the implementation of an industrial strategy that requires it.     

Postwar slowdowns and long-run growth: a Bayesian analysis of structural break models

Using Bayesian methods, we re-examine the empirical evidence from Ben-David, Lumsdaine, and Papell (Empir Econ 28:303–319, 2003) regarding structural breaks in the long-run growth path of real output series for a number of OECD countries. Our Bayesian framework allows the number and pattern of structural changes in trend and variance to be endogenously determined. We find little evidence of postwar growth slowdowns across countries, and smaller output volatility for most of the developed countries after the end of World War II. Our empirical findings are consistent with neoclassical growth models, which predict increasing growth over the long run. The majority of the countries we analyze have grown faster in the postwar era as opposed to the period before the first break.     

Why in rugby union does “Toulouse” mean “to win”? Estimation of a production function of sports results (2011–2016)

The objective of this article is to understand more fully the determinants of sports performance. To do this, we estimate a production function of sports results that explains the results of the Toulouse rugby union team's matches expressed as the gap in points between it and its opponents. To the best of our knowledge, this is the first time that a production function has been estimated in rugby union. In addition, it is one of the few production functions specified at the match level. The study confirms the relevance of some variables already identified in the literature, such as home advantage, ranking, the role of the referee, and in‐match statistics. It also shows the influence of new variables, such as weather conditions and the relative strength of fielded teams measured by comparing the teams selected on match day to the ideal teams defined at the beginning of the season.     

Engineering the Financialization of Urban Entrpreneurialism: The JESSICA Urban Development Initiative in the European Union

Urban entrepreneurialism and neoliberal urban governance are assuming new forms under finance‐dominated accumulation. We examine and contribute to theorizing the mechanisms through which urban governance is financialized, taking as a case study JESSICA, one of the European Union's initiatives to implement an ‘urban sensitive’ policy for sustainable and integrated development. Like other initiatives promoting financialization, JESSICA deploys the logic of finance to select and fund urban social initiatives and development projects on the basis of their potential return on investment (ROI). Understanding this process requires placing questions of political economy—how urban governance is shaped by the broader political‐economic context—with questions of governmentality—how stakeholders are enrolled in and come to take for granted new governance initiatives. Following the multi‐scalar institutional infrastructure is crucial to understanding how this works. Taking a relational multi‐scalar approach, we trace how changes at the supranational scale filter down to shape urban policy selection and performance in Sofia, Bulgaria, where we document how ROI calculations conflict with social welfare priorities. Contrasts between the trajectory of financialization of urban governance in the European Union and the United States demonstrate how this is geographically variegated, shaped by the broader context/conjuncture within which such financialization is embedded.     

iSDS: a self-configurable software-defined storage system for enterprise

ABSTRACT

Storage is one of the most important aspects of IT infrastructure for various enterprises. But, enterprises are interested in more than just data storage; they are interested in such things as more reliable data protection, higher performance and reduced resource consumption. Traditional enterprise-grade storage satisfies these requirements at high cost. It is because traditional enterprise-grade storage is usually designed and constructed by customised field-programmable gate array to achieve high-end functionality. However, in this ever-changing environment, enterprises request storage with more flexible deployment and at lower cost. Moreover, the rise of new application fields, such as social media, big data, video streaming service etc., makes operational tasks for administrators more complex. In this article, a new storage system called intelligent software-defined storage (iSDS), based on software-defined storage, is described. More specifically, this approach advocates using software to replace features provided by traditional customised chips. To alleviate the management burden, it also advocates applying machine learning to automatically configure storage to meet dynamic requirements of workloads running on storage. This article focuses on the analysis feature of iSDS cluster by detailing its architecture and design.     

Buyer-Option Contracts Restored: Renegotiation, Inefficient Threats, and the Hold-Up Problem

"Buyer-option" contracts, in which the buyer selects the productvariant to be traded and chooses whether to accept delivery,are often used to solve holdup problems. We present a simplegame that focuses sharply on subgames in which the buyer proposesinefficient actions in order to improve his bargaining position.We argue for one of several alternative ways to model this situation.We then apply that modeling choice to recent models of the foundationsof incomplete contracts and show that a buyer-option contractis sufficient to induce first-best outcomes.     

Multinationals and Training: Some Evidence from Irish Manufacturing Industries

This paper sets out to analyse the effect of plant and sectoral level characteristics on the provision of training to employees using plant level data for Irish manufacturing. There is no clear evidence that foreign owned plants are more likely to provide training. By contrast, we find that they spend less than domestic plants on training, ceteris paribus. There is also no evidence that plants that receive training grants are more likely to provide training. This may be likely to reflect the targeting of training grants on plants that are otherwise unlikely to provide much training. We do, however, find that training activity in the sector, either by other foreign or domestic plants, has a positive effect on plant level training activity, at least for domestic owned plants.     

Membership has its privileges: the effect of social capital and neighbourhood characteristics on the earnings of microfinance borrowers

In this paper we examine the determinants of self-employment success for microcredit borrowers. Theories of social capital and neighbourhood effects are integrated in an attempt to account for earnings differentials among a unique sample of microfinance borrowers. We posit that social capital – social relations that facilitate individual action – is essential for microentrepreneurial success. Based on a survey and data collected by the authors, it is demonstrated that social capital is a positive determinant of self-employment earnings. The role that neighbourhoods play in fostering social capital and improving microentrepreneurial performance are also highlighted. JEL classification: J23, O17, Z13