On the asymptotic distribution of weighted least squares estimators

Abstract

In the ELB (Empirical Linear Bayes)-approach to credibility, the unknown structural parameters are substituted by a set of parameter estimates. The weighted least squares estimators are known to be asymptotically normally distributed when the design variables are independent and identically distributed random variables. It is demonstrated that, with probability one, the conditional asymptotic distribution, given the design, is the same as the unconditional distribution. Estimation of the asymptotic covariance matrix will also be considered.     

Identification as a Trust-Generating Mechanism in Cooperatives

It is commonly held that trust is a crucial mechanism for coordination and control in cooperatives. The elusive nature of trust is also emphasised. What seems to be less discussed is where trust and distrust come from, as well as the shifting conditions under which trust is developed, maintained and sometimes disposed of. This article explores one trust-making mechanism which seems to be of particular interest in cooperatives and other membership-based organisations. The mechanism in question is members' identification to the cooperative organizations. The empirical test supports the proposition that strong identification is a significant trust-making mechanism in cooperative organizations.     

A wage-bargaining model for Denmark

Recent models of wage bargaining provide the background for formulating a wage-employment model which is estimated for the manufacturing sector in Denmark. Emphasis is laid on an interpretation of the empirical findings in a maroeconomic context. The major results are that wage setting is not characterized by money illusion, shorter working hours lead in the long run to full wage compensation and a fall in total number of hours worked, and expansionary demand management policies induce wage increases which eventually eliminate the expansionary effects on activity.     

Testing the central market hypothesis: a multivariate analysis of Tanzanian sorghum markets

The central market hypothesis is important in the analysis of market integration because it implies a specific market structure while avoiding a simultaneity problem. However, despite its importance, the central market hypothesis is difficult to test and is therefore often assumed. This article shows that the hypothesis can be tested in a Johansen cointegration test provided that prices are nonstationary. This approach is applied to reveal the existence of central markets for sorghum in Tanzania. The results indicate that the Tanzanian sorghum market can be grouped into two market regions, with prices being determined in a central market in each region.     

Eurocredit Pricing in Sovereign Lending

Eurocredit pricing to sovereign borrowers was analyzed for the period leading up to the international debt crisis. The return variable measured both fees and spread, instead of spread alone. The importance in pricing of objective and subjective indicators of country-risk, loan characteristics, and regional factors were examined. The analysis revealed a discrepancy between a perceptual measure and an objective measure of country-risk. Eurocredit pricing was not positively related to loan size and maturity, commonly viewed as increasing risk, and may have also been influenced by regional and institutional factors.     

The Liberating Power of Commercial Marketing

The aim of this article is to explore the impact of commercial marketing on personal autonomy. Several philosophers argue that marketing conflicts with ideals of autonomy or, at best, is neutral to these ideals. After qualifying our concept of marketing and introducing the distinctions between (i) divergent and convergent marketing and (ii) being autonomous and acting autonomously, we demonstrate the heretofore unnoticed positive impact of marketing on autonomy. Specifically, we argue that (i) convergent marketing has a significant potential to reinforce autonomous action and (ii) divergent marketing has a significant potential to reinforce the state of being autonomous.     

Adaptive grids for the estimation of dynamic models

Quantitative Marketing and Economics - This paper develops a method to flexibly adapt interpolation grids of value function approximations in the estimation of dynamic models using either NFXP...