Fast Kernel Smoothing of Point Patterns on a Large Network using Two‐dimensional Convolution

We propose a computationally efficient and statistically principled method for kernel smoothing of point pattern data on a linear network. The point locations, and the network itself, are convolved with a two‐dimensional kernel and then combined into an intensity function on the network. This can be computed rapidly using the fast Fourier transform, even on large networks and for large bandwidths, and is robust against errors in network geometry. The estimator is consistent, and its statistical efficiency is only slightly suboptimal. We discuss bias, variance, asymptotics, bandwidth selection, variance estimation, relative risk estimation and adaptive smoothing. The methods are used to analyse spatially varying frequency of traffic accidents in Western Australia and the relative risk of different types of traffic accidents in Medellín, Colombia.     

Is there an association between Vice‐Chancellors’ compensation and external performance measures?

We provide evidence on the pay for performance relation between Australian university Vice Chancellors’ compensation and independent measures of university teaching, research and other performance indicators provided by external ranking bodies. Our results show limited association between university rankings and Vice Chancellors’ compensation, but confirm that Vice Chancellors’ compensation is predominantly driven by size measures based on the different components of revenue. Further, we find that few universities offer performance‐based bonus payments. Our results are robust with respect to a number of sensitivity tests.     

Convenient specification tests for logit and probit models

We propose several Lagrange multiplier tests of logit and probit models, which may be inexpen- sively computed by means of artificial linear regressions. These maybe used to test for various forms of model inadequacy, including the omission of specified variables and heteroskedasticity of known form. We perform a number of sampling experiments, in which we compare the small-sam- ple properties of these tests and of likelihood ratio tests. One of the LM tests turns out to have better small-sample properties than any of the others. We then investigate the power of the tests against local alternatives, and conduct a further series of sampling experiments to compare the power of various tests.     

Monetary anticipations and the demand for money

It has recently been argued that unanticipated changes in nominal money supply should affect the real demand for money, and empirical results which appear to support this hypothesis have been presented. Unfortunately, the econometric techniques used by previous authors yield severel biased estimates. In this paper we show how valid estimates may easily be obtained, and present some illustrative empirical results using U.S. data. These results do not support the conclusions of earlier authors. We find that unanticipated money supply changes do indeed affect the real demand for money, but with the wrong sign, and that anticipated changes also have a significant effect.A consistency test for all models employing the anticipated-unanticipated distinction is also proposed.     

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Does Ownership Identity Matter? A Meta‐analysis of Research on Firm Financial Performance in Relation to Government versus Private Ownership

We examine whether reported ownership–performance relations systematically differ for government versus private ownership by integrating the diverse empirical results for listed corporations in emerging markets. Our meta‐analysis confirms popular perceptions that, compared to private ownership, government ownership is associated with inferior performance. We find that, on average, the underlying ownership–performance relation is negative for government ownership and positive for private ownership, and the difference between these relations is significant. We also find that the positive private ownership–performance relation is stronger for institutional/foreign ownership compared to family/management ownership. Further analysis shows that negative (positive) government (private) ownership and performance relations have weakened (strengthened) over time. Our assessment of the sources of heterogeneity shows that reported relations are biased by estimation methods that fail to adequately control for endogeneity. Our results suggest that the nature of ownership–performance relations in emerging markets remains very dynamic and warrants ongoing research interest.