Kernel-type estimators for the distortion risk premiums of heavy-tailed distributions

A new kernel-type estimator for the distortion risk premiums of heavy-tailed losses is introduced. Using a least-squares approach, a bias-reduced version of this estimator is proposed. Under suitable assumptions, the asymptotic normality of the given estimators is established. A small simulation study, to illustrate the performance of our method, is carried out.     

CAUSAL INFERENCE ON EDUCATION POLICIES: A SURVEY OF EMPIRICAL STUDIES USING PISA,TIMSS AND PIRLS

The identification of the causal effects of educational policies is the top priority in recent education economics literature. As a result, a shift can be observed in the strategies of empirical studies. They have moved from the use of standard multivariate statistical methods, which identify correlations or associations between variables only, to more complex econometric strategies, which can help to identify causal relationships. However, exogenous variations in databases have to be identified in order to apply causal inference techniques. This is a far from straightforward task. For this reason, this paper provides an extensive and comprehensive overview of the literature using quasi‐experimental techniques applied to three well‐known international large‐scale comparative assessments, such as PISA, PIRLS or TIMSS, over the period 2004–2016. In particular, we review empirical studies employing instrumental variables, regression discontinuity designs, difference in differences and propensity score matching to the above databases. Additionally, we provide a detailed summary of estimation strategies, issues treated and profitability in terms of the quality of publications to encourage further potential evaluations. The paper concludes with some operational recommendations for prospective researchers in the field.     

Internet Job Search and Labor Market Outcome

This study examines the effect of the use of internet job search (IJS) on individual wages. The data utilized in the study are obtained from the Internet and Computer Use Dictionary in the Current Population Survey of September 2001 and October 2003. An Oaxaca Decomposition is used to examine the extent to which wage differences are influenced by IJS. The results show that accessibility to the internet is a crucial factor in the decision of an individual to utilize the internet for job search activities. However, no clear evidence exists that IJS increases individual wages. Additionally, the study also demonstrates that IJS is subject to self-selection bias. Thus, failure to control for self-selection bias results in a very serious bias in estimation.     

The impact of production offshoring on the skill composition of manufacturing firms: evidence from Italy

In this work we explore how the international outsourcing of production impacts the skill composition of employment within Italian manufacturing firms. In particular, our aim is to assess whether the choice to offshore production activities to cheap‐labour countries implies a bias in the employment of skilled workers relative to unskilled ones.

Using a balanced panel of firms covering the period 1995–2003, we set up a counterfactual analysis in which, by using a difference‐in‐differences propensity score matching estimator, we compare the dynamics of skill demand for treated and control firms while addressing the possible problem of selection bias.

Our results identify a ‘potential’ skill bias effect of production offshoring. In particular, we find that treated firms tend to show an upward shift in the skill ratio with respect to the counterfactual sample, but coefficients are not significantly different from zero. When we look at the elements of the skill ratio separately, we find that the skill bias is driven by a fall in the employment of production workers (blue collars), rather than by the increase in the employment of non‐production workers (white collars), thus providing further evidence on the unskilled labour‐saving nature of international outsourcing.     

A Framework for Reconsidering the Lake Wobegon Effect

The Lake Wobegon Effect (LWE) describes the potential measurement-error bias introduced into survey-based analyses of education issues. Although this effect potentially applies to any student-report variable, the systematic overreporting of academic achievements such as grade point average is often of preeminent concern. This concern can be easily circumvented if official records data are available; however, many researchers can only access student-reported data. In this article, the authors examine whether using student-survey data in place of official records data meaningfully biases regression estimates. They motivate their contribution by noting a useful statistical feature of overreporting on bounded variables such as grade point average. Specifically, the misreports will be negatively correlated with the true grade point average, yielding a form of nonclassical measurement error that actually counteracts the bias. The authors connect this observation to reliability ratios used in labor economics, which are simple ways to adjust for attenuation bias, when needed. In two applications, we find that it is unnecessary to correct for the LWE bias because it is so small.     

Revisiting the expatriate failure concept: A qualitative study of Scandinavian expatriates in Hong Kong

This article advances the understanding of expatriate failure, which remains a contested social phenomenon in international work life as well as scholarly research. The study challenges the definition of expatriate failure and its inherent biases, i.e., the epistemological primacy of the firm level and the failure/success binary. We argue that this qualitative study of 51 Scandinavian expatriates in Hong Kong can contribute to advancing theory on the expatriate failure concept by asking individual expatriates what constitutes failure to them. By applying social constructionist and social anthropological ideas to the expatriate failure concept debate, we develop the internationality thesis which demonstrates a discrepancy between the expatriates’ perceptions of successful international assignments and the actual nature of their lived lives; many expatriates desire to enrich their lives through experiencing an international/intercultural and adventurous lifestyle, but, in fact, living lives with limited intercultural exposure and interaction. We conclude by proposing a reconceptualisation of expatriate failure in terms of offering both a new definition and approach to researching expatriate failure in which time/duration, context, and geographical location need to be taken into account. We believe the new approach can overcome some of the empirical unsoundness of mainstream definitions.     

The Last Word on the Wage Curve?

Abstract.  Since 1990, there has been extensive international research on the responsiveness of wages of individuals to changing local labour market conditions. For many countries, an inverse relationship between wages and local unemployment rates has been found. In their book, The Wage Curve , Blanchflower and Oswald argued that the unemployment elasticity of pay is around −0.1 in most countries. In a 1995 literature survey, Card referred to this striking empirical regularity as being close to an 'empirical law of economics'. Nonetheless, reported elasticities do vary, even excluding outliers, between about −0.5 and +0.1. There is also considerable heterogeneity among wage curve studies in terms of data and model specification. This paper carries out meta‐analytic techniques on a sample of 208 elasticities derived from the literature to uncover the reasons for the differences in empirical results across studies. Several causes of variation are identified. There is also clear evidence of downward publication bias. In addition, many reported t ‐statistics are biased upwards due to the use of aggregate unemployment rates. A maximum likelihood method and a trimming procedure are used to correct for these biases. Both methods give similar results for our sample. An unbiased estimate of the wage curve elasticity at the means of study characteristics is about −0.07.     

HANDLING NONRESPONSE IN LOGISTICS RESEARCH

Assessing and controlling for nonresponse bias is critical for the validity and reliability of survey‐based logistics research. In order to gain a better understanding of how researchers assess and report nonresponse bias in their studies, we analyzed articles published from 1998 through 2007 in three top logistics journals (International Journal of Physical Distribution and Logistics Management, Journal of Business Logistics, Transportation Journal). We describe and explore how nonresponse has been handled in these articles. Our findings show that first, survey response rates have declined over time; this influences the generalizability of survey results in case of nonresponse. Second, an average of 44% of published mail survey articles does not mention tests for detecting nonresponse bias.     

What you are is what you like—similarity biases in venture capitalists' evaluations of start-up teams

This paper extends recent research studying biases in venture capitalist's decision making. We contribute to this literature by analyzing biases arising from similarities between a venture capitalist and members of a venture team. We summarize the psychological foundations of such similarity effects and derive a set of hypotheses regarding the impact of similarity on the assessment of team quality. Using data from a conjoint experiment with 51 respondents, we find that venture capitalists tend to favor teams that are similar to themselves in type of training and professional experience. Our results have important implications for academics and practitioners alike.     

Sales channel integration after mergers and acquisitions: A methodological approach for avoiding common pitfalls

This article addresses the integration of sales channels after mergers and acquisitions (M&A) by appraising the strengths, weaknesses, and biases associated with the four most common frameworks for evaluating sales channels (sales management, historical performance, strategic fit, and customer choice) for their appropriateness in a post-M&A context. The authors develop a methodological approach that uses a balanced-scorecard framework to guide managers through the sales channel integration process, and then apply this approach to the merger of two industrial firms' sales organizations across 21 territories. In so doing, they reveal various pitfalls and propose and test some analytical corrections. Longitudinal performance data support comparisons across the different evaluative frameworks; in particular, the sales management and customer choice frameworks provide the most insight into channel partners' post-integration performance. The results support the premise that channel integration can be improved by accounting for factors unique to the M&A context and using an approach that triangulates multiple perspectives.