REGIONAL VARIATION OF MORTGAGE YIELDS AND SIMULTANEITY BIAS

This paper has important methodological implications for the literature on regional variation of mortgage yields. Previous studies typically estimate models of regional disparities in mortgage yields using single-equation regression techniques. It is well known, however, that such methods can lead to biased estimates when simultaneity exists. In this paper it is demonstrated that the single-equation approach, when applied to mortgage data from the 1980s, produces radically different results from the previous literature. It is further demonstrated that simultaneous-equations techniques resolve these apparent anomalies.     

Does Service Bundling Reduce Churn?

We examine whether bundling in telecommunications services reduces churn using a series of large, independent cross sections of household decisions. To identify the effect of bundling, we construct a pseudo‐panel dataset and utilize a linear, dynamic panel‐data model, supplemented by nearest‐neighbor matching. We find bundling does reduce churn for all three “triple‐play” services. The effect is only “visible” during times of turbulent demand. We also find evidence that broadband was substituting for pay television in 2009. This analysis highlights that bundling helps with customer retention in service industries, and may play an important role in preserving contracting markets.     

Coordination in evolving networks with endogenous decay

This paper studies an evolutionary model of network formation with endogenous decay, in which agents benefit both from direct and indirect connections. In addition to forming (costly) links, agents choose actions for a coordination game that determines the level of decay of each link. We address the issues of coordination (long-run equilibrium selection) and network formation by means of stochastic stability techniques. We find that the long-run behavior of the system depends on a fine interplay of the link cost and the trade-off between efficiency and risk-dominance.     

A Permanent Jobs Program for the U.S.: Economic Restructuring to Meet Human Needs

This paper proposes a jobs program to address both the chronic problems of unemployment and underemployment in the U.S. economy and the debilitating economic and political impacts of growing inequality in the U.S. The jobs program consists of three parts. First, the reduction of unemployment and underemployment by stimulating output, either under public or private auspices, of infrastructure, or social investment, in areas such as: transportation, education, health care, human services, and parks. Second, to recognize and respond to the failure of the private market to provide needed current public services, which will include a massive upgrading of pay and working conditions of these ??human service?? jobs by expanding public employment, sharing the costs of an enhanced and expanded social safety net. Third, to, explicitly and as a matter of industrial policy, target government investment and overall job growth towards the industries of the future, particularly in the areas of energy, agriculture, and other broadly defined ??green?? technologies.     

美国人如何看待中国的崛起

中国的GDP超过日本成为仅次于美国的世界第二大经济体,对此美国人有何看法？我认为,当美国人感觉受威胁时,他们会调转头米关注中国自身的内部问题,并希望借此使中国放缓经济发展的脚步。     

中美对话 谁上谁下？

又一轮中美战略经济对话（SED）结束了。上一次由于双方表现不佳,我们认为对话是失败的,那么这次能打几分呢？这次要好于上次,不过奇怪的是,双方与会者在很多方面更换了角色。别忘了中美战略经济对话不仅仅关于经济,还涉及安全问题。当峰会临近之际,朝鲜半岛的局势恶化了。     

Scholastic Effort: An Empirical Test of Student Choice Models

A measure of student effort based on time and the efficiency of its use was found to be significant in several learning models. The report discusses variations of a generalized learning model, different definitions of student input, and the use of pre-TUCE scores as a variable. The authors ask whether the pre-TUCE is more appropriate as a measure of economic knowledge or as a proxy for student aptitude. The findings and methodology should be of considerable interest to others doing research on student effort.     

Do small firms compete with large firms?

Despite the pervasive phenomenon of scale economies, the majority of firms have always been small firms. The emergence of small firms as a means of economic development on both sides of the Atlantic has been one of the major new topics of economic policy since the 1980s. This has drawn renewed attention to the question: How are small firms able to exist? The theories of strategic niches and dynamic complementarity imply that small firms seek out markets where they are able to avoid competition with their larger counterparts. This paper tests the validity of these theories by examining the extent to which small-firm profitability is set by large-firm profitability. Considerable evidence shows that the price-cost margins of small firms do not tend to follow those of large firms. This supports the theory that small firms pursue a strategy of producing in distinct product niches.     

Measuring retail performance in an omni-channel world

Abstract

Driven by global advances in technology and changes in consumer buying behavior, brick-and-mortar retailers are being forced to become omni-channel retailers. This calls for new metrics for evaluating retail performance. We examine the challenges facing the retail industry, the metrics that traditional brick-and-mortar stores have used as well as the new metrics that retail industry experts are suggesting for online retailing. A conceptual framework for omni-channel retailers is suggested.