Bivariate income distributions for assessing inequality and poverty under dependent samples

As indicators of social welfare, the incidence of inequality and poverty is of ongoing concern to policy makers and researchers alike. Of particular interest are the changes in inequality and poverty over time, which are typically assessed through the estimation of income distributions. From this, income inequality and poverty measures, along with their differences and standard errors, can be derived and compared. With panel data becoming more frequently used to make such comparisons, traditional methods which treat income distributions from different years independently and estimate them on a univariate basis, fail to capture the dependence inherent in a sample taken from a panel study. Consequently, parameter estimates are likely to be less efficient, and the standard errors for between-year differences in various inequality and poverty measures will be incorrect. This paper addresses the issue of sample dependence by suggesting a number of bivariate distributions, with Singh–Maddala or Dagum marginals, for a partially dependent sample of household income for two years. Specifically, the distributions considered are the bivariate Singh–Maddala distribution, proposed by Takahasi (1965), and bivariate distributions belonging to the copula class of multivariate distributions, which are an increasingly popular approach to modelling joint distributions. Each bivariate income distribution is estimated via full information maximum likelihood using data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey for 2001 and 2005. Parameter estimates for each bivariate income distribution are used to obtain values for mean income and modal income, the Gini inequality coefficient and the headcount ratio poverty measure, along with their differences, enabling the assessment of changes in such measures over time. In addition, the standard errors of each summary measure and their differences, which are of particular interest in this analysis, are calculated using the delta method.     

Efficiency characteristics of a market for state contingent claims

This paper concludes that a market for state-contingent claims (UK horserace betting) displays evidence of pervasive but heterogeneous forms of inefficiency, in significant contrast to earlier investigations. Using hitherto unavailable data, comparison of notional returns implicit in parallel sets of bookmaker and parimutuel odds identifies inefficiency in terms of zones of distinct but contrasting forms of cross-;market returns differential. The inefficiency is rationalized in terms of both buyer and supplier behaviour; its durability is explained in terms of limited arbitrage opportunities.     

Some New Results on When Extra Risk Strictly Increases an Option's Value

In this paper, we present some new results on when extra risk strictly increases an option's value. We give a necessary and sufficient condition for a mean‐preserving spread to strictly increase an option's value. We also give a necessary and sufficient condition for a risk change to strictly increase the values of options with strike prices in an open interval while preserving the values of all other options. These two results significantly improve the results given by Rasmusen (2007) (When does extra risk strictly increase an option's value? Review of Financial Studies, 20, 1647–1667). © 2012 Wiley Periodicals, Inc. Jrl Fut Mark 33:44–54, 2013     

Maximization,replication, and the economic rationality of positive economic science

This paper argues that gross, short-term capital mobility is excessive, but that long-term net capital mobility remains low. This combination of extremely high gross, but low net capital mobility can create great difficulties in achieving full employment. However, these difficulties fundamentally depend on the political structure and the choices made in individual nations; they do not result from technological advances, such as innovations in computers and communication. Faced with short-term capital mobility, groups and classes within nations have made political choices that hinder the ability of the nation to reach full employment. But other choices can be made.Nations can adopt political structures and rules of the game that reduce the constraints to achieving full employment.     

An Examination of Sales Promotion Programs in Hong Kong: What the Retailers Offer and What the Consumers Prefer

This study gives an insight into the retailer's capability of managing sales promotion by examining the sales promotion programs offered by Hong Kong cosmetic and toiletry retailers and the consumers’ preferences. The results indicate that instant-reward programs are popular among retailers and preferred by consumers. The results also show that the preferences for sales promotion programs are dependent upon consumers’ demographic and sociocultural characteristics. Implications for advertisers designing and communicating sales promotions are offered.     

Marketing and Professional Services: the Case of Consultancy Engineering

Professional services suffer from a dearth of literature on marketing, especially in New Zealand. Like other professioal services, consulting engineers have expressed particular concern on how to adapt to the present competitive environment. A survey of New Zealand consulting engineers indicated that the use of marketing techniques within consulting engineering practices is uncoordinated in nature and there is disagreement as to the most efective method of attracting clientele. The lack of coordination of marketing techniques is best illustrated by the majority of consulting engineering practices competing on price, while actually perceiving service quality as the most important method for success. Within consulting engineering practices, marketing is becoming a legitimate management function. However, evidence can be seen to illustrate that the ‘trappings' of marketing prevail rather than the ‘substance’ which is needed to have the customer-driven orientation fundamental to the implementation of the marketing concept.     

Chinese children’s attitudes towards television advertising: truthfulness and liking

This benchmarking study examines Chinese children.s perceived truthfulness of and liking for television advertising in three Chinese cities with different developmental levels of advertising. An in-person survey of 1758 children (ages 6 to 14) was conducted between December 2001 and March 2002 using a structured questionnaire. Results indicate that a majority of children perceive half of the television commercials to be true, although this varies by grade and geography. Children in Beijing perceived television commercials to be more trustworthy than did children in Nanjing and Chengdu. The percentage of children who perceive all commercials to be true declines consistently with grade in all three cities. There is a high proportion of first graders who perceive all commercials to be untrue. The basis for judgement varies predominantly by grade. Children in higher grades depend more on brand and user experience while children in lower grades rely mainly on authority (i.e. parents or teachers). A high proportion of first graders hold both a strong liking and disliking for commercials. These strong feelings towards advertising decreased with grade, being replaced by a marked increase in neutral or indifferent feelings. Gender and level of television viewing do not show a consistent impact on perceived truthfulness and liking for commercials. Perceived truthfulness of television advertising is related positively with liking for commercials.     

Understanding contemporary marketing: Development of a classification scheme

The term Relationship Marketing has been used in a multitude of ways to describe and define marketing in the contemporary environment. This has led to the term being loosely defined and applied in the literature, resulting in frustration for both researchers and practitioners. Therefore, a classification scheme is developed from analysis of the extant literature, and used to systematically examine the meaning of marketing across twelve dimensions which reflect issues related to marketing practice. From this scheme, the authors identify two ‘perspectives’ of marketing, which encompass four distinguishable ‘types’ of marketing. Implications for future research in the area are discussed.     

The dynamics of responder behavior in ultimatum games: a meta-study

Using data aggregated from seven papers that study repeated play in standard ultimatum games with either stranger or absolute stranger matching, we show that the behavior of responders changes with experience. High offers are more likely to be accepted with experience and low offers are more likely to be rejected. At the individual level, there is a negative relationship between the likelihood that a given offer is accepted and the size of the preceding offer. We compare the results with predictions generated by static models of distributional preferences, implicitly dynamic models of preferences with reciprocity, and explicitly dynamic models of adaptive learning. The data is most consistent with models of preferences with reciprocity.