On bivariate generalized binomial and negative binomial distributions

The present paper deals with two types of generalized general binomial (binomial or negative binomial) distributions: (i) a univariate general binomial generalized by a bivariate distribution and (ii) a bivariate general binomial generalized by two independent univariate distributions. The probabilities, moments, conditional distributions and regression functions for these distributions are obtained in terms of bipartitional polynomials. Moreover recurrence relations for the probabilities and moments, independent of the bipartitional polynomials, are given. Finally these general results are applied to the (i) Binomial-Bivariate Poisson and (ii) Bivariate Binomial-Poissons distributions.     

Rough and lonely road to prosperity: a reexamination of the sources of growth in Africa using Bayesian model averaging

This paper takes a fresh look at Africa's growth experience by using the Bayesian model averaging (BMA) methodology. BMA enables us to consider a large number of potential explanatory variables and sort out which of these variable can effectively explain Africa's growth experience. Posterior coefficient estimates reveal that key engines of growth in Africa are substantially different from those in the rest of the world. More precisely, it is shown that mining, primary exports and initial primary education exerted differential effect on African growth. These results are examined in relation to the existing literature. Copyright © 2008 John Wiley & Sons, Ltd.     

Two‐level CES Production Technology in the Solow and Diamond Growth Models*

The two‐level CES aggregate production function—that nests a CES into another CES function—has recently been used extensively in theoretical and empirical applications of macroeconomics. We examine the theoretical properties of this production technology and establish existence and stability conditions of steady states under the Solow and Diamond growth models. It is shown that in the Solow model the sufficient condition for a steady state is fulfilled for a wide range of substitution parameter values. This is in sharp contrast with the two‐factor Solow model, where only an elasticity of substitution equal to one is sufficient to guarantee the existence of a steady state. In the Diamond model, multiple equilibria can occur when the aggregate elasticity of substitution is lower than the capital share. Moreover, it is shown that for high initial levels of capital and factor substitutability, the effect of a further increase in a substitution parameter on the steady state depends on capital–skill complementarity.     

An Experimental Study of Statistical Discrimination by Employers

This article reports findings of an experiment motivated by a dynamic labor market model that considers the problem faced by employers in making hiring decisions between workers of different types. The question examined here is how quickly employers learn about the ability of a group of workers through observing representatives of that group. If prior opinions are weak, the employer will use Information from the workplace to quickly update any incorrect group-based stereotypes it may have. On the other hand, if priors are heavily weighted, incorrect initial perceptions will result in persistent wage differences. Our experimental findings are twofold. First, subjects' (employers') behavior moves quickly toward optimal choices. Second, strong priors are hard to establish. These results suggest that it would take a long time for employers to form group-based stereotypes and that such stereotypes should go away quickly in response to signals that contradict these stereotypes.     

Responsible Leadership in Organizational Crises: An Analysis of the Effects of Public Perceptions of Selected SA Business Organizations’ Reputations

??The loss of a stable state?? (Schon 1973) in organizational transformation can both be regarded as lamentable and inevitable. Transformation causes disruption and invasions of comfort zones to those affected by it, but it is nevertheless inevitable. The article maintains that while the loss of a stable state is inevitable in the stream of change confronting organizations today, points of stability and methods of dealing with instability are attainable through responsible management. The article postulates that steps taken by responsible leadership in response to specific business crises will reduce the effects of instabilities brought about by such transformational situations and reassert a stable state more rapidly. Utilizing Weber??s ??ideal type?? model format (Morrison 2006) with a specific example of international best practice of remedial steps taken by management in reaction to a specific crisis experienced by an organization, the article uses a qualitative historical case study analysis and quantitative time series research design to investigate South African firms which had recently faced crises impinging on their current corporate reputations. Findings suggest that both the number of remedial steps taken by companies and the speed in which they are implemented in conformance with the model are negatively associated with the size of the share price falls immediately post crises. The findings also suggest that larger share price appreciations over 6-month post-crises are associated with greater perceived corporate reputations and brand strengths. Tentative conclusions and possibilities for further research are briefly discussed.     

Persistent Doubt: An Examination of Hedge Fund Performance

We examine whether performance persistence is suspicious. Top quintile portfolios formed on the Sharpe ratio, alpha, and information ratio persistently outperform similarly constructed mediocre third quintile portfolios throughout our sample period, but performance is more modest and less persistent when portfolios are formed on the excess manipulation‐proof performance measure (EMPPM). By selecting funds formed on ranking by Sharpe and information ratios, investors also select funds that have persistently doubtful performance according to the doubt ratio. In contrast, portfolios formed on alphas and especially the EMPPM have much less excess and persistent doubt.     

A Bibliometric Study of Advertising Citations

Abstract

A bibliometric investigation identified citation patterns in advertising-related articles published during 1981–83 in a number of core journals and conference proceedings in advertising, marketing, consumer research and communication. Business publications and psychology publications were found to have accounted for more than half of the 6,312 citations coded in this study. Although the raw data indicated that the Journal of Marketing Research and the Journal of Advertising Research were historically the most-cited journals, a method that controls for differences in years of publication, number of articles published per year and frequency of self-citations detected an increased impact, in recent years, on the part of the Journal of Advertising and of consumer-research publications.     

The impact of transportation cost uncertainty on urban structure

Under an uncertain transportation cost, residential choice is made before the actual state of the world reveals itself. Formally, this resembles the theory of saving under uncertainty. Exploring this resemblance, we investigate the effect on urban structure of introducing uncertainty in transportation cost. Our main conclusion is that risk does not necessarily have the same effect on the city that an increase in transportation cost does in the deterministic case. If the utility function obeys the ‘principle of decreasing risk aversion to concentration’, introducing risk causes the urban area to contract (as in the case of an increasing transportation cost), but the equilibrium utility level may either increase or decrease. If, on the other hand, utility does not satisfy the above principle, introducing risk causes the utility level to decline (as if the case of an increasing transportation cost), but the urban area may either expand or contract.     

Characterizations of logarithmic series distrimtrans

The distributions of X, Y and (X. Y ), where X and Y are random variables with probability functions of a logarithmic series law, are characterized by the regression function of X on Y and the conditional distribution of Y given X. Moreover, characterizations are given for binomial or Pascal conditional distributions in terms of the regression function of X on Y and the marginal distribution of X.