Estimation of demand and supply functions from univariate sample with known separation

It is shown that the joint unconditional density function of demand and supply is a computable function of parameters of the conditional density function of the observed quantity. Propositions of formulating unconditional and conditional disequilibrium measures are suggested.     

The examination of pecan price differences using spatial correlation estimation

A spatial analysis is used to model factors that explain the price received by pecan growers. Besides the statistical aspect of the study focussing on spatial autoregressive residuals, the economic analysis of the paper identifies linkages between the price for in-shell pecans received by growers and the characteristics of the orchard, production costs and resources, and the orchard location.     

The impact of license regulation on the number of recreation trips: is it worth considering?

A two-stage nonlinear least-squares model (2NLS) with an endogenous treatment effect on recreation trips describes the behavior of recreationists with and without a fishing/hunting license. The proposed 2NLS is applied to the derivation of the policy-relevant average gains in the presence of an endogeneity bias to a license fee implementation program regulated by states. Recreationists who purchased a license are likely to recreate more than are the nonlicensed holders because the regulation may reduce congestions at sites where licensee visit often. The license regulation has a greater impact on the use of natural resources after controlling observed and unobserved confounders which might be correlated with the probability of being a license holder and with the final outcome, the number of recreation trips. We confirm that the individual without a permit regards the recreation trip as less valuable than does the individual having a license permit. We also found that the likelihood of purchasing a license among young adult recreationists is not at the level the states may desire. In addition, the number of trips demanded is more responsive to the nontransportation-related implicit travel cost than to the transportation-related implicit travel cost, although travel implicit costs are price inelastic.      

A small forward-looking inter-country model (Belarus, Russia and Ukraine)

The paper describes an inter-country model developed on the New Keynesian Phillips curve principle for the economies of Belarus, Russia and Ukraine. Technically the modelling idea has been grounded within the concept of the infinite dimensional vector autoregressive models by Chudik and Pesaran [Chudik A., Pesara M.H., 2007. Infinite-dimensional VAR's and factor models. IZA; DP No. 3206]. The main developments are such that the model is 1) interdependent rather than vector autoregressive, 2) estimated by the generalised method of moments and 3) forward-looking. The primary linkage of the country models is provided through the real effective exchange rates of particular countries, while the secondary linkages are through the Chudik and Pesaran cross-sectional augmentations. A series of Monte Carlo experiments confirms that the small cross-dimension of the model and a possible dominance of one country in the panel (Russia) should not distort the results in a significant way. A series of stochastic simulation experiments made with and without the assumption of observational equivalence principle shows a possible spread of the Dutch Disease from Russia to other countries in the model.     

The relative efficiency of slave agriculture: a reply

Professors Hofler and Folland have written a very interesting paper, which brings out several interesting ideas and is a contribution to the literature. They argue that their results contradict those of our original paper concerning the relative efficiency of small versus large slave farms. Specifically they find that large slave farms are relatively more efficient. However, they have missed that main point of the original paper which was to compare the relative efficiency of slave and non-slave farms. On this issue, the Holfer and Folland comment provides no additional insight. Thus their paper, while interesting, is not a comment on our original work.     

Does the use of professional legal assistance bring measurable benefits?

In this paper, the first attempt to quantify measurable effects of using legal advisory services is made with the use of a random sample and advanced econometric methods (robust MM-estimator). The estimates of parameters of an extended Mincer equation indicate that the appearance of legal problems results in lower earnings per person in a household and the choice of an active reaction to this legal problem results in a substantial reduction of losses.     

R&D Costs,Innovative Output and Firm Size in the Pharmaceutical Industry

This study examines the relationships between firm size, R&D costs and output in the pharmaceutical industry. Project–level data from a survey of 12 US–owned pharmaceutical firms on drug development costs, development phase lengths and failure rates are used to determine estimates of the R&D cost of new drug development by firm size. Firms in the sample are grouped into three size categories, according to their pharmaceutical sales at the beginning of the study period. The R&D cost per new drug approved in the US is shown to decrease with firm size, while sales per new drug approved are shown to increase markedly with firm size. Sales distributions are highly skewed and suggest that firms need to search for blockbuster drugs with above–average returns. The results are consistent with substantial economies of scale in pharmaceutical R&D, particularly at the discovery and preclinical development phases.     

EXAMINING THE LINK BETWEEN JAPAN'S DEVELOPMENT AND EDUCATION OF FEMALES

Abstract.   This paper studies the role of education of females in Japan's development process. It analyses the pre-war years (1888 to 1940) as well as the five decades following the war and Japan's rise to economic power (1947 to 1990). This paper finds that Japan's pre-war growth was fuelled primarily by agricultural growth and primary education (of males in particular). The story is different in the post-war period, however. Capital accumulation, secondary and tertiary education of females, and tertiary education for males seem to provide the driving forces of growth.