On the asymptotic normality of some unbiased estimates

Abstract

Let X _m(n) =(X _j , n, ..., X _{j m,n} ) be a subset of observations of a sample X_n = (X_1n X _2n ... , X _nn ). Here the X_jn 'S in Xn are not necessarily independent or identically distributed, and m(n) mayor may not tend to infinity as n tends to infinity. Suppose the joint density function h_n =h_n (x _m (n); θ) of the X _jn 's in Xm(n) is completely specified except the values of the parameters in the parameter vector θ = (θ1 θ2, ... , θ _k ), where θ belongs to a non-degenerate open subset H of the k-dimensional Euclidean space Rk and k?m(n).     

National Papers of Interest to Economic Educators

The author argues that while advances in technology may have made long-range and long-term planning less critical, they have not made long-run decisionmaking obsolete.     

Some Surprising Properties of Power Indices

While it is troubling when power-index values change with the index, the problem is more severe: Different indices can generate radically different rankings. For example, a 15-player game exists with over a trillion different strict index rankings of the players. In contrast, with a fixed number of players certain indices always share the same ranking: e.g., the Shapley and Banzhaf rankings agree with three players, but they can have opposite rankings with more players. It is explained why index outcomes can be sensitive to assumptions and to when players leave a game. Journal of Economic Literature Classification Numbers: C71, D71.     

The Role of Beta and Size in the Cross-Section of European Stock Returns

This paper examines the ability of beta and size to explain cross-sectional variation in average returns in 12 European countries. We find that average stock returns are positively related to beta and negatively related to firm size. The beta premium is in part due to the fact that high beta countries outperform low beta countries. Within countries high beta stocks outperform low beta stocks only in January, not in other months. We reject the hypothesis that differences in average returns on size- and beta-sorted portfolios can be explained by market risk and exposure to the excess return of small over large stocks (SMB). Consistent with recent US evidence, we find that after controlling for size, there is no association between average returns and exposure to SMB.     

Planning or free market economy in LDCs?

On the face of it it looks as if there should be no great difference between less developed countries (LDCs) and the advanced national economies as far as planning is concerned. And yet in reality such differences do exist, even if they do not necessarily stem from the inequalities in the standard of living.     

Flexible work arrangements in Greece: a study of employee perceptions

The purpose of this study is twofold: first, to explore factors that affect employees' perceptions towards flexible work options; second, to examine whether the perceived benefits and barriers associated with work flexibility predict one's decision to participate in flexible work arrangements or not. A total of 362 Greek employees participated in the study to determine their attitudes towards flexible work practices. Univariate analyses of variance and logistic regression analysis were conducted with the aim of exploring the research hypotheses. It is found that attitudes towards flexible work options are dependent on gender, sector of employment and prior participation in a flexible work scheme. In general, women, public sector employees and employees who have participated in flexible work arrangements are more likely to perceive more benefits and fewer costs with regard to the use of work flexibility. Further analysis provided evidence that work–life balance benefits are stronger predictors of participation in flexible work practices. These findings suggest that employee-centred organisations that view flexibility as a valuable management tool, should deal with specific barriers that discourage people from taking up flexible work arrangements. Given the dearth of empirical research on work flexibility in Greece, the findings of this study provide the wider academic community with new insights on employees' perceptions of flexible work options.     

Orthogonalized factors and systematic risk decomposition

In the context of linear multi-factor models, this study proposes an egalitarian, optimal and unique procedure to find orthogonalized factors, which also facilitates the decomposition of the coefficient of determination. Importantly, the new risk factors may diverge significantly from the original ones. The decomposition of risk allows one to explicitly examine the impact of individual factors on the return variation of risky assets, which provides discriminative power for factor selection. The procedure is experimentally robust even for small samples. Empirically we find that even though, on average, approximately eighty (sixty-five) percent of style (industry) portfolios’ volatility is explained by the market and size factors, other factors such as value, momentum and contrarian still play an important role for certain portfolios. The components of systematic risk, while dynamic over time, generally exhibit negative correlation between market, on one side, and size, value, momentum and contrarian, on the other side.     

Unemployment,insurance and smoking

Using recent state-level data from the United States, this article examines new influences on cigarette demand. In particular, we uniquely focus on the effects of unemployment and health insurance coverage on smoking. Results show that higher cigarette prices, a lack of health insurance and restrictions on smoking at home, all lead to reduced smoking. On the other hand, literacy, income, unemployment, workplace smoking restrictions, smokeless tobacco taxes and tobacco-producing states do not seem to have an appreciable impact. The magnitude of the price elasticity of demand is greater than that found in the pre-MSA era. Policy implications are discussed.     

A Note on Attitude as a Factor in Learning Economics

Although one might naturally assume that students interested in economics will learn more in an introductory course than those not interested in the subject, this assumption had to be tested. Using a specially designed “Questionnaire on Student Attitude Toward Economics” on a pretest and posttest basis, and accounting for previous course work, the student's verbal and quantitative skills, and student program requirements, Karstensson and Vedder employed linear multiple regression analysis and found a positive relationship between precourse attitude and course grade. Changes in student attitude which occurred during the course were also analyzed.     

Your Place in Space: Classroom Experiment on Spatial Location Theory

The authors detail an urban economics experiment that is easily run in the classroom. The experiment has a flexible design that allows the instructor to explore how congestion, zoning, public transportation, and taxation levels determine the bid–rent function. Heterogeneous agents in the experiment compete for land use using a simple auction mechanism. Using the data that is collected, a bid–rent function is derived, and the experimental treatment is altered over the course of three sessions to uncover core concepts in urban economics. Moreover, this provides a tangible experience that can be used to help undergraduates relate to urban issues such as the steep rent gradient found around many larger colleges and universities.