Capital-skill complementarity and wage outcomes following technical change in a global model

We estimate the extent of factor bias in technical changes consistentwith observed changes in skill premia. To control for the effectsof expanded trade on wages we use a structural model with multipleregions and comparative static analysis. Two alternative biasedtechnical-change stories emerge: skill enhancement when capitaland skill are substitutes and capital enhancement when capitaland skill are complements. These imply different underlyingtechnical-change processes and macroeconomic behaviour in responseto technical-change shocks. Capital enhancement offers the morecredible process, however, and is consistent with observed risesin the 'equipment content' of the capital stock.     

A New Control Variate Estimator for an Asian Option

There exist several estimators for valuing the Asian option on the arithmetic mean. Among all variance reduction estimators, the one with the control variate derived from the geometric mean has been shown by Boyle et al. (1997) to perform best so far. In this paper, a new improved control variate estimator for this type of Asian option is proposed and investigated. Simulation results confirm that it does perform better than the control variate derived from the geometric mean. The improvement becomes more significant as the volatility increases and/or as the time to expiration lengthens.     

Corporate governance in South Korea: the chaebol experience

Utilizing a large sample of South Korean firms, this paper explores the impact of corporate governance in an emerging market country dominated by a few large business groups. Firms affiliated with the top five groups (chaebol) exhibit significantly lower performance and significantly higher sales growth relative to other firms. Furthermore, top executive turnover is unrelated to performance for top chaebol firms, indicating a breakdown of internal corporate governance for the largest business groups. Internal corporate governance appears much more effective for firms unrelated to the top chaebol as managers at poorly performing firms are significantly more likely to lose their job. These results imply that the lack of properly functioning internal corporate governance among the top chaebol, which dominate the Korean economy, may have increased the severity of the recent financial crisis.     

On characterizing distributions by conditional expectations of functions of order statistics

In the present paper, we give some general theorems on characterizations based on conditional expectations of the functions of order statistics. In addition, we indicate special forms of the theorems for the familiar probability distributions.     

Flying Ducks? Girls’ Schooling in Rural Vietnam: A Revisit

In Vietnam, girls are colloquially referred to as 'flying ducks' as they are regarded as a loss to the family upon marriage. Using the Vietnam Living Standards Surveys of 1992–1993 and 1997–1998, the method of Doiron and Riddell (1994) is applied to decompose the probability gap of being in school to explore gender differences in children's education and changes over time. The unexplained component is found to account for most of the observed gender probability gap in each period. Over time, however, the gap has narrowed. The explained component (namely, household income and children's involvement in housework or work activities) contributes to the narrowing gap. Cutting the indirect cost of education for girls (forgone contribution in work and housework) is crucial in ensuring girls have the same education opportunities as boys do.     

ECONOMETRIC MODELLING OF THE EUROPEAN COMMUNITY COMPOUND FEED SECTOR: AN APPLICATION TO FRANCE

This paper develops a model of the European Community compound feed sector capable of explaining demand for feed ingredients, and the output demand and prices for compound feeds. The adopted framework rests upon the use of duality theory to represent the optimising production decisions of compound feed firms. In addition, an appropriate methodology is suggested to capture the rapid expansion in the consumption of compound feeds in the European Community and their adoption by livestock producers. The model is then applied to the French compound-feed sector using annual time-series data stretching over the period 1962–1980.