The variance of the discrepancy distribution of rounding procedures,and sums of uniform random variables

When \(\ell \) probabilities are rounded to integer multiples of a given accuracy n, the sum of the numerators may deviate from n by a nonzero discrepancy. It is proved that, for large accuracies \(n \rightarrow \infty \), the limiting discrepancy distribution has variance \(\ell /12\). The relation to the uniform distribution over the interval \([-1/2, 1/2]\), whose variance is 1 / 12, is explored in detail.     

Limits of the New Institutional Economics Approach to African Development

In the last two decades, there has been a marked shift in the research on Sub-Saharan Africa from standard neoclassical analysis to new institutional economics (NIE). The increasing emphasis on NIE is reflected in a wide range of works by international financial institutions and scholars. However, the NIE approach retains fundamental limitations due to its narrow interpretation of institutions, its over-reliance on analysis of transactions costs and property rights, and its ahistorical attachment to markets and private sector firms as major engines of development. Furthermore, NIE typically fails to look “inside institutions” to identify the complex cultural factors that shape the interests and behaviors of the members of institutions. This paper engages in a critique of NIE analysis of Sub-Saharan Africa’s economic development, and suggests the need for a nuanced analysis of property rights and culture, along with development programs to address inequality and poverty and to foster state-led development.     

On the construction of approximate multi-factor designs from given marginals using the iterative proportional fitting procedure

Summary For multifactor designs based on linear models, the information matrix generally depends on a certain set of marginal tables created from the design itself. This note considers the problems of whether a set of marginal tables is consistent, in that a design exists that can yield them, and of calculating such a design when at least one does exist. The results are obtained by direct analogy with the problem of maximum likelihood estimation in longlinear models for categorical data.     

Changes in the Effects of Mandatory Rate Regulation On Growth in Hospital Operating Costs, 1980–1996

We conduct a panel data fixed effects analysis of hospital costs from 1980 through 1996. Consistent with the findings of similar studies, hospitals residing in all-payer rate regulated states in 1984 and 1991 had operating costs approximately 3 to 4 percentage points lower than their less regulated counterparts. However, by 1996, the effect of rate regulation on hospital costs was reduced to approximately -0.4 percent, a result that narrowly achieves statistical significance (p = 0.09). Hospitals residing in relatively concentrated markets, measured by the Herfindahl-Hirschman Index, were more likely to have higher operating costs, an effect that increased in magnitude over time. The results support the conclusion that hospitals in markets with comparatively less rate regulation or more competition have lower operating costs than their regulated or less competitive counterparts.     

GROWTH IN THE SHADOWS: EFFECT OF THE SHADOW ECONOMY ON U.S. ECONOMIC GROWTH OVER MORE THAN A CENTURY

Taking a long‐term look at U.S. economic growth over 1870–2014, this paper focuses on the spillovers from the shadow or the unofficial economy to growth in the official sector. Shadow activities might spur or retard economic growth depending on their interactions with the formal sector and impacts on the provision of public goods. Nesting the analysis in a standard neoclassical growth model, we use a relatively new time series technique to estimate the short‐run dynamics and long‐run relationship between economic growth and its determinants. Results suggest that prior to World War II (WWII) the shadow economy had a negative effect on economic growth; however, post‐WWII the shadow economy was beneficial for growth. The sanding effect of the shadow economy in the earlier period is especially robust to alternate considerations of possible endogeneity and an alternate set of growth determinants. (JEL E26, O43, O51, K42)     

Beyond the mechanics of spreadsheets: using design instruction to address spreadsheet errors

Given that the usage and complexity of spreadsheets in the accounting profession are expected to increase, it is more important than ever to ensure that accounting graduates are aware of the dangers of spreadsheet errors and are equipped with design skills to minimize those errors. Although spreadsheet mechanics are prevalent in accounting curricula, less attention has been given to design considerations that can reduce the incidence of spreadsheet errors. The extant literature provides evidence of the most common types of spreadsheet errors and explanations as to why they occur. Using the work of Panko and others, this paper outlines a three-step approach for introducing spreadsheet design practices to novice spreadsheet developers. To facilitate design instruction, this paper provides a summary of foundational readings related to spreadsheet errors as well as specific teaching strategies for addressing the most common spreadsheet errors identified in the literature.     

Much Ado about Nothing? The Role of Primary School Catchment Areas For Ethnic School Segregation: Evidence From a Policy Reform

By the 2008/09 school year the federal state of North Rhine‐Westphalia (Germany) abolished binding school catchment areas in all municipalities. The reform has been controversial and it was feared that school choice would increase ethnic segregation. Using data on all primary schools we contribute to this debate by analyzing ethnic segregation before and after the reform. We discuss drawbacks of commonly used segregation indices and their interpretation as well as causality issues. Although there is an increase in segregation over the time period studied, our results show that segregation has not been affected by the policy reform.     

Die Steuerreformpläne der neuen Bundesregierung und das Bürgergeld

Im Koalitionsvertrag wird eine Steuerreform mit einem Stufentarif für Anfang 2011 in Aussicht gestellt. Gleichzeitig erkl?ren die Regierungsparteien dort ihre Absicht, ein Bürgergeld einzuführen. Welche Wirkungen diese Ma?nahmen auf die Besch?ftigung, die Staatsfinanzen und die Einkommensverteilung haben würden, untersucht eine Arbeitsgruppe aus dem Forschungsinstitut zur Zukunft der Arbeit (IZA). Sie kommt zu dem Ergebnis, dass von diesen Reformvorschl?gen abzuraten sei.     

Which Companies Benefit from Liberalization? a Study of the Influence of Initial Productivity

Theoretical research shows that competition has positive effects on productivity, for companies that are initially efficient, but not for unproductive firms. Our empirical analysis on a panel data of Czech companies, years 1995–2004, confirms this result. In addition, our analysis shows that when economic reforms affect both domestic and foreign competition, controlling for domestic competition is crucial when assessing the impact of trade liberalization. Otherwise, the effect of trade liberalization on firm productivity is upward biased.