Ownership and control of Maori land: Some lessons for South Africa

New Zealand replaced customary tenure of Maori land with titles. Some issues are relevant to South Africa. Massive redistribution of Maori land is accounted for by inadequate property rights conferred fay colonial legislation. Institutions emerged to deal with problems of landlessness and low farm incomes created by titling, among which private incorporations and trusts were particularly successful Such institutions may under certain conditions be useful to smallholders in the former homelands and to groups of farmers who acquire freehold land in South Africa.     

A Bayesian Semiparametric Competing Risk Model with Unobserved Heterogeneity

This paper generalizes existing econometric models for censored competing risks by introducing a new flexible specification based on a piecewise linear baseline hazard, time‐varying regressors, and unobserved individual heterogeneity distributed as an infinite mixture of generalized inverse Gaussian (GIG) densities, nesting the gamma kernel as a special case. A common correlated latent time effect induces dependence among risks. Our model is based on underlying latent exit decisions in continuous time while only a time interval containing the exit time is observed, as is common in economic data. We do not make the simplifying assumption of discretizing exit decisions—our competing risk model setup allows for latent exit times of different risk types to be realized within the same time period. In this setting, we derive a tractable likelihood based on scaled GIG Laplace transforms and their higher‐order derivatives. We apply our approach to analyzing the determinants of unemployment duration with exits to jobs in the same industry or a different industry among unemployment insurance recipients on nationally representative individual‐level survey data from the US Department of Labor. Our approach allows us to conduct a counterfactual policy experiment by changing the replacement rate: we find that the impact of its change on the probability of exit from unemployment is inelastic. Copyright © 2014 John Wiley & Sons, Ltd.     

Homeownership, committed expenditure risk, and the stockholding puzzle

Kimball (1991) showed that consumers who face an unavoidablerisk will display 'temperance', meaning that they will increasetheir holdings of safe assets. In principle, temperance couldprovide an explanation for the stockholding puzzle, which isthe microeconomic manifestation of the equity premium puzzle.Previous work has shown that the temperance effect induced bylabor income uncertainty is too small to explain the stockholdingpuzzle. This paper finds that committed expenditure risk associatedwith homeownership induces enough additional temperance to explainthe puzzle.     

Total factor productivity convergence in German states since reunification: Evidence and explanations

A quarter-century after reunification, labor productivity in the states of eastern Germany continues to lag systematically behind the West. Persistent gaps in total factor productivity (TFP) are the proximate cause; conventional and capital-free measurements confirm a sharp slowdown in TFP growth after 1995. Strikingly, eastern capital intensity, especially in industry, exceeds values in the West, casting doubt on the embodied technology hypothesis. TFP growth is negatively associated with rates of investment expenditures. The stubborn East-West TFP gap is best explained by low concentration of managers, low startup intensity and the distribution of firm size in the East rather than R&D activities.     

Sectoral Transformation, Turbulence and Labor Market Dynamics in Germany

Abstract. This paper analyzes the interaction between structural change and labor market dynamics in West Germany, during a period when industrial employment declined by more than 30% and service sector employment more than doubled. Using transition data on individual workers, we document a marked increase in structural change and turbulence, in particular since 1990. Net employment changes resulted partly from an increase in gross flows, but also from an increase in the net transition 'yield' at any given gross worker turnover. In growing sectors, net structural change was driven by accessions from non-participation rather than unemployment; contracting sectors reduced their net employment primarily via lower accessions from non-participation. German reunification and Eastern enlargement appear to have contributed significantly to this accelerated pace of structural change.     

Applying free random variables to random matrix analysis of financial data. Part I: The Gaussian case

We apply the concept of free random variables to doubly correlated (Gaussian) Wishart random matrix models, appearing, for example, in a multivariate analysis of financial time series, and displaying both inter-asset cross-covariances and temporal auto-covariances. We give a comprehensive introduction to the rich financial reality behind such models. We explain in an elementary way the main techniques of free random variables calculus, with a view to promoting them in the quantitative finance community. We apply our findings to tackle several financially relevant problems, such as a universe of assets displaying exponentially decaying temporal covariances, or the exponentially weighted moving average, both with an arbitrary structure of cross-covariances.     

A Poisson mixture model of discrete choice

In this paper, we introduce a new Poisson mixture model for count panel data where the underlying Poisson process intensity is determined endogenously by consumer latent utility maximization over a set of choice alternatives. This formulation accommodates the choice and count in a single random utility framework with desirable theoretical properties. Individual heterogeneity is introduced through a random coefficient scheme with a flexible semiparametric distribution. We deal with the analytical intractability of the resulting mixture by recasting the model as an embedding of infinite sequences of scaled moments of the mixing distribution, and newly derive their cumulant representations along with bounds on their rate of numerical convergence. We further develop an efficient recursive algorithm for fast evaluation of the model likelihood within a Bayesian Gibbs sampling scheme. We apply our model to a recent household panel of supermarket visit counts. We estimate the nonparametric density of three key variables of interest-price, driving distance, and their interaction-while controlling for a range of consumer demographic characteristics. We use this econometric framework to assess the opportunity cost of time and analyze the interaction between store choice, trip frequency, search intensity, and household and store characteristics. We also conduct a counterfactual welfare experiment and compute the compensating variation for a 10%-30% increase in Walmart prices.     

German trade unions after unification — Third degree wage discriminating monopolists?

German Trade Unions After Unification — Third Degree Wage Discriminating Monopolists? — After unification, real wages in eastern Germany rose rapidly relative to labor productivity and despite high and rising levels of unemployment. This substantial and rapid increase in wages relative to western Germany is difficult to explain without recourse to models of union behavior and collective bargaining. This paper applies and extends such models and evaluates plausible explanations for recent wage developments in the ex-GDR.     

Uzbekistan: the silk road to nowhere?

The Central Asian country of Uzbekistan has adopted a unique transition strategy of gradual, state-guided development in which stability and equality are principal objectives and in which growth is sought for now by exporting staple raw materials and importing capital equipment to assure energy independence and to invest in backward-linkages into cotton fabricating, chemicals, and other manufacturing branches. Sharp criticisms of the'Uzbek Road'by multinational agencies unfairly neglect positive aspects of the transition record to date in comparison with other post-Soviet states of the area.