What Determines Public Support for Affirmative Action?

We present a public higher-education finance model in which demand for education can exceed supply because of indivisibilities in educational investment. In such situations, a screening mechanism—which may exhibit a selection system bias—is required for allocation. We show how changes in the education premium and the test score gap between the minority and the majority might affect political support for affirmative action. When the education premium is relatively low, the matching efficiency gains provided by affirmative action are high compared with the opportunity cost of not acquiring education, and the majority supports affirmative action. When the education premium is high, the opportunity cost of not getting educated is high relative to the matching efficiency gains provided by affirmative action policies, and the majority's support for affirmative action is weaker. In contrast, a higher test score bias has a generally ambigious effect on the majority's political support. If the test score bias is sufficiently large, however, the majority does support affirmative action.     

A model of entry–exit decisions and capacity choice under demand uncertainty

Many investment decisions of agribusiness firms, such as when to invest in an emerging market or whether to expand the capacity of the firm, involve irreversible investment and uncertainty about demand, cost or competition. This paper uses an option‐value model to examine the factors affecting an agribusiness firm's decision whether and how much to invest in an emerging market under demand uncertainty. Demand uncertainty and irreversibility of investment make investment less desirable than the net present value (NPV) rule indicates. The inactive firm is more reluctant to enter the market when it takes into account demand uncertainty because it preserves the opportunity of making a better investment later. The active firm is more reluctant to abandon the investment because there is an option value of keeping the operation alive. There is a greater distance between the entry and exit thresholds under the option‐value approach than under the NPV rule due to demand uncertainty. The results have implications for agribusiness decision‐making.     

A Kantian Analysis of Pricing and R & D

Review of Industrial Organization - Can cooperation offer an innovative alternative to competition among firms? This design problem is analyzed in the context of Kantian cooperation among firms in...     

Using OWA aggregation technique in QFD: a case study in education in a textile engineering department

Quality Function Deployment (QFD) is a systematic approach that considers customer needs through design, production, marketing, and support stages. Customer needs are the main input for QFD, so voice of customer must be understood well and changes, innovations, and treatments must be held in this view. In QFD applications, determining the priorities of customer needs is a fairly important stage. This is mostly held by Analytic Hierarchy Process (AHP) a multicriteria decision making technique. Nonetheless, Ordered Weighted Averaging (OWA) is an aggregation technique mostly used in decision making for multicriteria decision problems. So, combining these two techniques will give a different viewpoint for prioritizing the customer needs in QFD applications. The aim of this study is to show the use of Ordered Weighted Averaging (OWA) aggregation technique in QFD applications. For this purpose a case study in Dokuz Eylül University Textile Engineering Department was held. It was aimed to support the efforts on increasing the education quality by determining the students’ needs and opinions using QFD with OWA.     

GENERAL PUBLIC LICENSING AND THE INTENSITY OF AGGREGATE SOFTWARE DEVELOPMENT

We develop a theoretical model in which the sophistication of technologies improves over time due to research and development (R&D) undertaken by software developers in two sectors. In the commercial sector, R&D intensity is driven by economic incentives, whereas in the sector using the General Public License (GPL), it is driven by the preference-based labor supply of individuals. A higher amount of GPL labor allocation generates equilibrium effects that adversely affect commercial software development. When the degree of imitation in the GPL sector is relatively higher than in the commercial sector, or the commercial sector has increasing returns of a limited degree, the R&D intensity in the commercial sector would decline by more than any increases in R&D intensity in the GPL sector. Thus, aggregate R&D intensity in the long run would be reduced. Numerical simulation indicates that this outcome pertains under realistic parameter ranges.     

Trade,Diaspora and Migration to New Zealand

This paper examines the hypotheses that a greater stock of migrants in New Zealand from a particular country leads to more trade between that country and New Zealand, and a greater stock of New Zealanders living overseas in a particular country leads to more trade between that country and New Zealand. It also examines the relationships between migration, diaspora and tourism exports. The literature suggests that migrants can stimulate trade by lowering transaction costs, and by bringing with them preferences for goods produced in their home country. Our approach is to apply panel data techniques, within the framework of a standard gravity model of trade, to a dataset consisting of information on 233 countries in each of the 26 years between 1981 and 2006. We estimate a random effects panel sample selection model using correlated random effects. Our results indicate that migration does indeed stimulate trade. In our benchmark specification, merchandise exports from and imports to New Zealand both have a statistically significant relationship with numbers of migrants in New Zealand; imports also have a statistically significant relationship with numbers of New Zealanders overseas. Our results also suggest that migration stimulates imports more than exports.     

Bayesian analysis of the ordered probit model with endogenous selection

This paper presents a Bayesian analysis of an ordered probit model with endogenous selection. The model can be applied when analyzing ordered outcomes that depend on endogenous covariates that are discrete choice indicators modeled by a multinomial probit model. The model is illustrated by analyzing the effects of different types of medical insurance plans on the level of hospital utilization, allowing for potential endogeneity of insurance status. The estimation is performed using the Markov chain Monte Carlo (MCMC) methods to approximate the posterior distribution of the parameters in the model.     

Financial market participation and the developing country business cycle

I explore the implications of limited participation in financial markets on a standard small open economy business cycle model. Despite its parsimony, the limited participation model developed in this paper improves over the standard model in terms of explaining two important features of business cycle facts of developing countries: high volatility of consumption, and high negative correlation between the trade balance and output. Limited participation model is then used to inspect the effects of financial development and integration on macroeconomic volatility. Under a standard calibration, limited participation model leads to the conclusion that financial development and integration are associated with higher investment and output volatility. Effect of more participation on consumption volatility is dependent on the specification of the risk premium function.     

Sea turtle interactions with Hawaii's longline fishery: an extended multi-objective programming model incorporating spatial and seasonal dimensions

The numerous discussions regarding the advantages and disadvantages of Turkey's becoming a member of the Customs Union has been inconclusive. The empirical analysis that mostly focus on the changes in the volume of trade without much regard to the conjectural changes have also been insufficient. This study attempts to shed light on this issue in a formal analysis of Turkey's international trade by empirically accounting for the changes before and after the Customs Union Agreement (CUA). In doing so, we explicitly account for the concurrent changes in the macroeconomic environment that may have affected Turkey's trade with the rest of the world. Our empirical findings indicate that CUA has not only positively impacted on Turkey's trade, but also led to changes in the behaviour of both exports and imports with regards to their responsiveness to underlying variables.