Estimation of the probability of labor force participation of the AFDC population-at-risk

Summary In summary, the functional form makes quite a difference. An investigator should be quite wary of making generalizations based on any single specification or estimation technique. However, the above results have shown in striking fashion the superiority of MLE of the sigmoid specifications over the OLS estimation of the linear probability specification. Although the logistic or urban specification require iterative solution, this is no barrier on a modern digital computer, with appropriate special algorithms. A further advantage of the MLE is the asymptotic normality of the estimates of _i which permits large sample interval estimation, and the iteration method of scoring employed yields directly an estimate of the standard deviation of each normally distributed _i . Also standard tests of significance are now applicable.Perhaps most importantly, the sigmoid specifications are consistent with a probability interpretation since the estimates lie inside the unit interval, and the sigmoid shape is consistent with the assumed unimodal distribution of the participation decision.In conclusion, results reported in previous investigations of the probability of labor force participation or labor force participation rate which have relied on the least squares estimation of a linear probability specification are likely to be unreliable as to he magnitude of the response attributed to changes in explanatory variables.     

Note sur quelques inégalités et formules d'approximation

Abstract

Les calcuis pénibles et laborieux que nécessitent trop souvent les opérations d'assurance sur la vie, rendent fort désireux de trouver des formules d'approximation ou bien des inégalités générales, faisant connaître en chaque cas particulier, et avec le moins de travail possible, une limite supérieure ou inférieure des expressions dont on cherche la valeur numérique. Cela est évident surtout au cas où l'on désire senlement faire une évaluation “à peu près”. Les exemples en abondent.     

The components of the illiquidity premium: An empirical analysis of US stocks 1927–2010

This paper implements a conditional version of the liquidity adjusted CAPM (LCAPM). The conditional LCAPM allows for a time-varying decomposition of the total illiquidity premium into a level component and three risk components. The estimated average annual total illiquidity premium for US stocks 1927–2010 is 1.74–2.08%, which is substantially lower than in most previous studies. The contributions from illiquidity level and illiquidity risk are 1.25–1.28% and 0.46–0.83%, respectively. Of the three illiquidity risk components, risk related to the hedging of wealth shocks is the most important, while commonality risk is the least important. The illiquidity premia are clearly time-varying, with peaks in downturns and crises, but with no general tendency to decrease over time. The level premium and the risk premium are significantly positively correlated, at around 0.35; indicating that in periods of turbulence both illiquidity cost and illiquidity risk premia tend to be high.     

Price Knowledge During Grocery Shopping: What We Learn and What We Forget

Past research on consumer price knowledge has varied considerably partly due to differences in how and when price knowledge is measured. This paper applies a multi-point, multi-measure approach to reconcile differences in past price knowledge research by examining systematic relationships between time of measurement and type of measures applied. Examination of consumer price knowledge before, during, and after store visit sheds light on what is measured at the individual points in time: episodic price knowledge and/or reference prices? With a between-subjects design interviewing 1,204 respondents, the authors investigate three price knowledge measures (price recall, price recognition, and deal spotting) demonstrating that these are hierarchically related. Results suggest that reference prices dominate before store visit, but also that episodic price knowledge, surprisingly, is still accessible at the store exit. These findings enable the authors to reconcile diverging results from past research, showing how consumer price knowledge evolves and suggesting that the vast majority of consumers learn about prices, whether consciously or unconsciously, during grocery shopping. Thus, when applying a multi-point, multi-measure approach, consumers appear to know more about prices than suggested by past research. Determinants of price knowledge are also examined and the results indicate that price knowledge builds up not only because of active search but also due to accidental exposure to prices and with low degrees of conscious processing. Implications for managers are discussed.     

Consumers’ multifaceted deal knowledge in a grocery retail setting

Despite its relevance to retailers, studies of consumers’ deal knowledge have been few. This study explores consumers’ deal knowledge before, during, and after the store visit applying a between-subjects field-study design with 1204 respondents. In particular, the authors investigate perception of deal price status, typical deal price knowledge, and deal-spotting ability. Results show reasonably stable knowledge of typical deal prices, while knowledge of deal price status and deal-spotting ability improves significantly during grocery shopping. Surprisingly, consumers’ deal knowledge is not conditional on purchasing a special thus indicating that most consumers, consciously or unconsciously, scan for promotion signals when shopping groceries. In addition, the results suggest consumers are not easily fooled, as the vast majority is able to spot ‘good’ and ‘bad’ deals, while also possessing typical deal price knowledge. Furthermore, the findings suggest that consumers store internal reference deal prices. Retailers are therefore well advised to consider mixed depth and creative discount patterns to prevent ‘perfect’ perceptions of typical deal prices.     

Über mechanische Ausgleichung

Wenn die Meinungen der Mathernatiker über den Wert uad die Anwendbarkeit der mechanischen Ausgleichung immer noch so sehr auseinandergehen wie es wirklich der Fall zu sein scheint, so dürfte dies wohl zum grossen Teil darauf zurückzuführen sein, dass die ganze Frage Vom rein theoretischen Staridpunkte aus trotz allem vielleicht immer noch nicht genügend beleuchtet worden ist.     

Human resource management in action. Changing culture through ceremony: An example from GM

This paper examines the impact of a joint GM/UAW ceremony on changes in the traditional labor-management culture. Ceremonies can help change corporate culture when the actual event is transformed into an organizational story. Stories help motivate change because they provide purpose and clues to new behavior patterns.     

Occupational assignment,hiring discrimination,and the gender pay gap

An identified, structural demand-wage equation is estimated using endogenous indicators for working part-time and occupational assignment. The wage equation is estimated by two-stage and ordinary least squares, and the pay gap is decomposed into explained and residual parts. Measures of gender-based wage discrimination are estimated after making adjustments to account for hiring discrimination and occupational preferences. The evidence indicates that gender differences in preferences for occupation explain much of the gap, yet there is still evidence of hiring discrimination. As a percentage of male wages, the discriminatory gap adjusted for hiring discrimination lies between 10.5 and 13.5 percent when estimated by ordinary least squares, and between 2.2 and 5.4 percent when estimated by two-stage least squares.     

Small forces and large firms: Foundations of the RBV

The article presents a synthesis of several papers I have written, mostly in the economics literature, since the publication of ‘A resource‐based view of the firm’ (Wernerfelt, 1984). The starting point is a very small force: the reduction in bargaining costs when several bargains are pooled into one. I show how one can construct a theory of the firm based on this force and defend the theory by arguing that it makes predictions consistent with several stylized facts. In addition, the theory suggests that firms should decide on their strategy and scope based on excess capacity of productive resources—exactly like the RBV.     

An integrative conceptual framework for analyzing customer satisfaction with shopping trip experiences in grocery retailing

Grocery retailers aim to satisfy customers, and because grocery shopping trips are frequently recurring, they must do so continuously. Surprisingly, little research has addressed satisfaction with individual grocery shopping trips. This article therefore develops a conceptual framework for analyzing customer satisfaction with individual grocery shopping trip experiences within an overall ‘disconfirmation of expectations model’ of customer satisfaction. The contribution of the framework is twofold. First, by focusing on satisfaction with individual grocery shopping trips, previous research on satisfaction is extended to a context marked by frequently recurring, often tedious and routine activities. Understanding what causes satisfaction/dissatisfaction with individual shopping trips is required to explain overall, cumulative satisfaction with a retailer, which has been the focus of prior research on satisfaction in the retailing literature. Second, the framework synthesizes and integrates multiple central concepts from different research streams into a common framework for analyzing shopping trip satisfaction. Propositions are derived regarding the relationships among the different concepts in the framework and suggestions for future research are offered.