Stationary bootstrapping for common mean change detection in cross-sectionally dependent panels

Stationary bootstrapping is applied to a CUSUM test for common mean break detection in cross-sectionally correlated panel data. Asymptotic null distribution of the bootstrapped test is derived, which is the same as that of the original CUSUM test depending on cross-sectional correlation parameter. A bootstrap test using the CUSUM test with bootstrap critical values is proposed and its asymptotic validity is proved. Finite sample Monte-Carlo simulation shows that the proposed test has reasonable size while other existing tests have severe size distortion under cross-section correlation. The simulation also shows good power performance of the proposed test against non-cancelling mean changes. The simulation also shows that the theoretically justified stationary bootstrapping CUSUM test has comparable size and power relative to other, theoretically unjustified, moving block or tapered block bootstrapping CUSUM tests.     

On the Equivalence of Tariffs and Quotas under a Revenue Constraint

This paper sets out a duopolistic model to examine the price and welfare equivalence of tariffs and quotas, given the quota rent is equal to the tariff revenue. It shows that the domestic welfare ranking of the two trade policies crucially depends on the relative costs of the domestic and foreign firms; when the domestic firm's relative costs are lower than those of the foreign firm, a quota regime generally leads to a higher welfare level than that of an equivalent tariff regime. This finding contrasts sharply with the conclusions of Dasgupta and Stiglitz (1977 ), where it was found that a tariff regime always generates higher domestic welfare.     

全风化混合花岗岩边坡降雨冲刷试验研究

为了探究全风化混合花岗岩的冲刷破坏演化规律,设计了坡面降雨冲刷试验。借助高密度电法和面波测试方法,选取云南临沧南部山区混合花岗岩边坡进行现场冲刷试验,并构建了全风化混合花岗岩边坡入渗侵蚀量化评估方法,对全风化混合花岗岩边坡降雨冲刷破坏特征进行了分析。结果表明：1）边坡受雨水冲刷的影响深度分为3层,即0~0.5 m表层、0.5~1.6 m中层和1.6 m以下深层;2）侵蚀过程分为3个阶段,即①雨水溅蚀、入渗阶段,雨水溅蚀,坡面岩土体结构发生初始破坏,平均电阻率升高,剪切波速降低;②下层潜蚀入渗饱和阶段,雨水入渗饱和,岩土体结构进一步破坏呈松散砂状,坡面径流量较小,表层岩土体保持较好的完整性;③细沟贯通冲蚀破坏阶段,表土层平均电阻率迅速升高,剪切波速大幅度降低,坡面径流量增加,细沟贯通延伸至坡脚并出现大规模片蚀。以剪切波速变化率和电阻率变化率为基础建立的全风化混合花岗岩边坡入渗侵蚀量化评估方法,可为全风化混合花岗岩工程边坡冲刷治理提供可靠的技术支撑。     

–Nonrecourse Mortgage and Housing Price Boom,Bust, and Rebound

This paper investigates the impact of –nonrecourse vs. recourse mortgages on housing price dynamics in major U.S. metropolitan statistical areas for the period from 2000 to 2013. We find evidence that –nonrecourse states experience faster price growth during the boom period (2000–2006), a sharper price drop during the bust period (2006–2009) and faster price recovery in the rebound period after a crisis (2009–2013). Moreover, the volatility of housing prices is higher in nonrecourse states than in recourse states, particularly during the rebound period.     

Experiential regret in service failure: The role of service justices

ABSTRACT

Regret is so common as to be the second most frequently named emotion in a study of the use of emotions in everyday language (Shimanoff, 1984 Shimanoff, S. B. (1984). Commonly named emotions in everyday conversations. Perceptual and Motor Skills, 58, 514. doi:10.2466/pms.1984.58.2.514[Crossref], [Web of Science ®] , [Google Scholar]). Regret is a negative, cognitively based emotion that we experience when realizing or imagining that our present situation would have been better had we acted differently (Zeelenberg, 1999 Zeelenberg, M. (1999). The use of crying over spilled milk: A note on the rationality and functionality of regret. Philosophical Psychology, 12, 325–340. doi:10.1080/095150899105800[Taylor & Francis Online], [Web of Science ®] , [Google Scholar]). Meanwhile, complaint handling takes an important role in raising the retention rate of the customers who experience service problems (Hart, Heskett, & Sasser, 1990 Hart, C. W. L., Heskett, J. L., & Sasser, W. E., Jr. (1990). The profitable art of service recovery. Harvard Business Review, 68(4), 148–156.[PubMed], [Web of Science ®] , [Google Scholar]). Customers anticipate that enterprises will remedy their service failure. The complaining process enhances the relationship between dissatisfied customers and enterprises (Chebat & Slusarczyk, 2005 Chebat, J. C., & Slusarczyk, W. (2005). How emotions mediate the effects of perceived justice on loyalty in service recovery situations: An empirical study. Journal of Business Research, 58, 664–673. doi:10.1016/j.jbusres.2003.09.005[Crossref], [Web of Science ®] , [Google Scholar]). One of the strategies to retain customers is to recover justice from failures (Blodgett, Hill, & Tax, 1997 Blodgett, J. G., Hill, D. J., & Tax, S. S. (1997). The effects of distributive, procedural, and interactional justice on postcomplaint behavior. Journal of Retailing, 73(2), 185–210. doi:10.1016/s0022-4359(97)90003-8[Crossref], [Web of Science ®] , [Google Scholar]). This study intended to explore the impact of customers’ experiential regret in service failure on customers’ behavioral intention and investigate whether the service justice perceived by customers moderates the relationship between these two.     

Does illiquidity matter in residential properties?

No, it does not, despite the general perception that illiquidity matters in real estate. As expected, our evidence shows that the illiquidity costs for the U.S. residential properties are large. The costs are equivalent to 12% of the total property returns on average, ranging from 9.5% to 29.5% of property prices depending on the illiquidity level and market conditions. However, when amortized by holding periods, monthly illiquidity costs are on average 0.08%, and illiquidity risk does not appear to be priced in residential properties; illiquid properties do not show higher returns than liquid properties. On the contrary, we find evidence of flight-to-quality in bull markets, that is, high-quality illiquid properties are preferred to low-quality liquid properties in buoyant markets. These results are in sharp contrast with those in equities and bonds where flight-to-liquidity has been reported when markets are in stress.     

Effect of disclosure regulation on earnings management through related-party transactions: Evidence from Taiwanese firms operating in China

This study examines the effect of disclosure regulation on earnings management using Taiwanese companies conducting transactions with China as the institutional setting. Measuring earnings management by the amount of discretionary accruals (DACCs), the study shows that disclosure regulation mitigates DACCs of Taiwanese firms engaging in related-party transactions with Chinese entities. Following enactment of the disclosure regulation in November 2000, DACCs among Taiwanese enterprises conducting transactions via offshore affiliates dropped. While the disclosure regulation helps to reduce earnings management, this study reports that such effect is asymmetric between high-tech firms and non–high-tech firms. Specifically, the disclosure regulation is effective in reducing earnings management among firms in non–high-tech sectors. However, such effect is not significant among firms in high-tech sectors. This study discusses the implications of empirical findings for corporate management, regulatory agencies, and firm stakeholders.     

Technology choice under duopoly

This paper presents a conjectural variation approach to demonstrate that competing firms will often distort their cost structures away from strict cost minimization for strategic reasons. In particular, it is shown that the nature of the desired distortions of production technology depends critically on the magnitudes of the firms' conjectural variations with respect to outputs as well as the firms' conjectural variations with respect to technology. These results are in sharp contrast to the conventional wisdom based on monopolized or perfectly competitive markets.     

A robust asymptotically optimal sequential estimation procedure for the Poisson process

The problem of estimating sequentially the intensity parameter of a homogeneous Poisson process with quadratic loss and fixed cost per unit time is considered within the Bayesian framework. Without using both the prior information and any auxiliary data, this paper proposes a sequential procedure as that suggested by Vardi (Ann Statist 7:1040?C1051, 1979) in classical non-Bayesian sequential estimation. The proposed sequential procedure is robust in the sense that it does not depend on the prior. The second order approximations to the expected sample size and the Bayes risk of the proposed sequential procedure are established for a large class of prior distributions.     

The voluntary organizations and democracy in Korea: A civil society perspective

After achieving the dramatic progress of democracy recently, the preconditions of democracy in Korea are a major concern for scholars at home and abroad; These days, therefore, finding factors for successful democracy might be an important agenda for Korea as much as for all less‐developed countries. Among many factors conducive to democracy, this study emphasizes the important role played by voluntary associations as mediating and countervailing mechanisms to both the central government and markets. Even though there have been many factors at work in shaping political democracy, Korean experience during last three decades calls attention to the importance of the transition of the resurrection of civil society through an explosion of autonomous interest group expression and activity. The Korean experience supports that the organization of the citizenry is an indispensable condition for the development and maintenance of democracy.