Restricted maximum likelihood estimation under Eisenhart model Ill

For a balanced two-way mixed model, the maximum likelihood (ML) and restricted ML (REML) estimators of the variance components were obtained and compared under the non-negativity requirements of the variance components by L ee and K apadia (1984). In this note, for a mixed (random blocks) incomplete block model, explicit forms for the REML estimators of variance components are obtained. They are always non-negative and have smaller mean squared error (MSE) than the analysis of variance (AOV) estimators. The asymptotic sampling variances of the maximum likelihood (ML) estimators and the REML estimators are compared and the balanced incomplete block design (BIBD) is considered as a special case. The ML estimators are shown to have smaller asymptotic variances than the REML estimators, but a numerical result in the randomized complete block design (RCBD) demonstrated that the performances of the REML and ML estimators are not much different in the MSE sense.     

The impact of the foreign corrupt practices act on us exports

In 1977 the Foreign Corrupt Practices Act (FCPA) was enacted to penalize US firms and their employees for paying bribes to foreign government officials. If bribe payments influence the awarding of contracts and the FCPA regulation differentially affects US exporters compared to foreign competitors, then US exporters' bribe-paying ability and market share would be expected to decline. This study provides empirical evidence that the FCPA had a negative effect on US exports to non-Latin American countries but not to bribery prone ones in Latin America.     

External wealth, the trade balance, and the real exchange rate

We examine the link between the net foreign asset position, the trade balance and the real exchange rate. In particular, we decompose the impact of a country's net foreign asset position (‘external wealth’) on its long-run real exchange rate into two mechanisms: the relation between external wealth and the trade balance; and, holding fixed other determinants, a negative relation between the trade balance and the real exchange rate. We also provide additional evidence that the relative price of nontradables is an important channel linking the trade balance and the real exchange rate.     

Local public goods and private suppliers: Musical suburbs replayed

This paper deals with the existence of private market suppliers in a standard local public goods model. The result of this modification can be a cycling process instigated by rich households rather than poor households. The theoretical model provides empirical implications for capitalization studies and policy implications for the provision and financing of local public goods including education.     

Pigou, Tiebout, property taxation, and the underprovision of local public goods

Pigou's proposition that the use of distorting taxes rather than neutral head taxes reduces public service levels is examined in this paper. A simple model with a national system of competing local governments is utilized to demonstrate that the use of a distorting property tax on mobile capital decreases the level of residential public services. The case where public services are an intermediate producer good is also considered.     

Autoverkopen en autopark in Nederland, 1950–1970

Summary This is a study of the demand for the ownership of new or firsthand cars, i.e. the demand of ‘first owners’ who habitually buy new cars which are then traded in long before they are obsolescent. Upon combining the evidence of various surveys with time-series for 1950-64 it is found that this ownership has an income elasticity of 2 and a price elasticity of – 1.25 in respect of the constant-quality index of new car prices earlier provided. On the average new cars are traded in after three years so that roughly one third of the existing stock is replaced every year. These values together determine an equation for purchases of new cars which accurately predicts new registrations in 1965 and 1966. Projections for the years 1967-70 are provided. In the model employed the total number of cars (including used cars) is determined by the active demand exerted by ‘first owners’ on one hand and by the hitherto fairly constant scrappage rates on the other. Projections of the overall ownership rate can therefore be derived from the forecasts of new registrations. The ownership rate will approach 80% around 1970, and it is likely that at that stage the current scrappage rates will cease to apply in view of the greater predilection for comparatively younger cars.