Can Unemployment Insurance Spur Entrepreneurial Activity? Evidence from France

We evaluate the effect of downside insurance on self-employment. We exploit a large-scale reform of French unemployment benefits that insured unemployed workers starting businesses. The reform significantly increased firm creation without decreasing the quality of new entrants. Firms started postreform were initially smaller, but their employment growth, productivity, and survival rates are similar to those prereform. New entrepreneurs' characteristics and expectations are also similar. Finally, jobs created by new entrants crowd out employment in incumbent firms almost one-for-one, but have a higher productivity than incumbents. These results highlight the benefits of encouraging experimentation by lowering barriers to entry.     

The remarkable wealth of the Dutch Cape Colony: measurements from eighteenth‐century probate inventories1

How comfortable was the life of the average settler in the Dutch Cape Colony of the eighteenth century? The generally accepted view is of a poor, subsistence economy, with little progress being made in the 143 years of Dutch rule (1652–1795). This article shows that new evidence from probate inventory and auction roll records contradicts earlier historical accounts. These documents bear witness to a relatively affluent settler society, comparable to some of the most prosperous regions of eighteenth‐century England and Holland. This detailed picture of the material wealth of the Colony should inspire a revision of the standard accounts. The causes and consequences of this prosperity are also considered briefly.     

Characteristics of teenage food advertisements in Finland

The aim of this study was to investigate which foods were directly advertised to Finnish teenagers and to analyse the information given about the ingredients, the role of health and pleasure and the activities and milieus in the advertisements. In order to shed light on the socio-cultural context, two successful advertisements; one for Coca-Cola and one for milk, were described in detail. Eighty-nine food advertisements published in Finnish youth magazines, and 116 television-spots shown in 1983 were subjected to content analysis. Typical food advertisements aimed at teenagers were for soft drinks, chocolates, can-dies, and milk. These contained little information on ingredients and this was often misleading. Health claims were rare, whereas good flavour was emphasized. In the advertisements young people exercised, danced or drove motor vehicles distant from their everyday living environment. They enjoyed the refreshing power of nature, did not go to school or eat ordinary meals, but took soft drinks and chocolates for strength and energy. The advertisements emphasized the pleasures of eating and skillfully associated the foods with teenage life-style. Due to the absence of an urban tradition the ‘American dream’ presented in movies, popular music, and advertising is accepted in Finland. In a successful milk advertisement the combination of Finnish agricultural milieu with American music created a positive response among teenagers.     

News Trading and Speed

We compare the optimal trading strategy of an informed speculator when he can trade ahead of incoming news (is “fast”), versus when he cannot (is “slow”). We find that speed matters: the fast speculator's trades account for a larger fraction of trading volume, and are more correlated with short‐run price changes. Nevertheless, he realizes a large fraction of his profits from trading on long‐term price changes. The fast speculator's behavior matches evidence about high‐frequency traders. We predict that stocks with more informative news are more liquid even though they attract more activity from informed high‐frequency traders.     

AN APPLICATION OF SEQUENTIAL REGRESSION MULTIPLE IMPUTATION ON PANEL DATA

The relatively new sequential regression multiple imputation (SRMI) method is introduced, with the process of SRMI laid out in detail. The Project for Statistics on Living Standards and Development and the follow‐up KwaZulu‐Natal Income Dynamics Study provide the real panel data on which the methods reviewed are applied. The SRMI process is used to create multiple datasets completed with values imputed for data originally missing, and using the error component model estimation procedures and Rubin's rules, inferences on the panel data are made. Conclusions are drawn as to the applicability of the SRMI process to these data and as to the results of the regression analyses completed.     

Nonuniform Staggered Prices and Output Persistence

Staggered prices are a fundamental building block of New Keynesian dynamic stochastic general equilibrium models. In the standard model, prices are uniformly staggered, but recent empirical evidence suggests that deviations from uniform staggering are common. This paper analyzes how synchronization of price changes affects the response to monetary policy shocks. I find that even large deviations from uniform staggering have small effects on the response of output. Aggregate dynamics in a model of uniform staggering may serve well as an approximation to a more complicated model with some degree of synchronization in price setting.