Disentangling the Dividend Information in Splits: A Decomposition Using Conditional Event-Study Methods

While folklore in finance holds that split valuation effectsare due to dividend increases associated with splits, littleis known about magnitudes of dividend and nondividend componentsof split announcement effects. We find that splits and dividendsare indeed informational substitutes, a notion we characterizemore precisely, but a significant portion of split valuationeffects, 46% according to our estimates, cannot be attributedto dividend information in splits. Our techniques extend theliterature on conditional event-study methods and we illustratetheir practical value in testing hypotheses and analyzing datanot amenable to analysis by standard procedures.     

On a use of stratified sampling in optimal estimation

Summary Postulating an intra-class correlation structure for a finite population vector of variate — values optimal stratified and unstratified strategies for estimating the total are identified and relative efficiencies noted. Higher efficiency of stratified over unstratified sampling is demonstrated for usual estimators in ppswr case, in particular. In the uncorrelated case appropriately chosen two-stage strategies are observed to fare at par with optimal stratified ones.     

Raising the bar (6)

Raising the bar (6). Spatial Economic Analysis. This editorial summarizes and comments on the papers published in issue 12(4) so as to raise the bar in applied spatial economic research and highlight new trends. The first paper addresses the question of whether ‘jobs follow people’ or ‘people follow jobs’. The second paper develops a new methodology to determine functional regions. The third paper is a major contribution to the growing literature on new modelling approaches and applications of disaster impact models. The fourth paper focuses on the costs and benefits of higher education. The fifth paper develops a two-step procedure to identify endogenously spatial regimes in the first step using geographically weighted regression, and to account for spatial dependence in the second step. Finally, the sixth paper estimates a dynamic spatial panel data model to explain house prices and to show that restricted housing supply in the city of Cambridge, UK, has some undesirable labour market effects.     

Targeting Child Labor in Debt Bondage: Evidence, Theory, and Policy Implications

Despite recent multilateral efforts to single out child laborin debt bondage as one of the worst forms of child labor, severalimportant questions have yet to be addressed: How pervasiveis the phenomenon? Are there systematic correlations betweenthe incidence of children in debt bondage and the economic,legislative, and financial development indicators of the economy?How does an understanding of these correlates affect the waynational and international policy measures aimed at targetingthis form of child labor are perceived? This article addresseseach of these questions. The empirical findings suggest strongcorrelation between the likelihood of the incidence of childlabor in debt bondage with the stage of development of an economy,the stage of financial development, and enforcement of corelabor rights. Building on this evidence, the article presentsa theoretical model that highlights the drawbacks and meritsof a number of policies aimed at putting checks on child laborin debt bondage.     

关于推动农村邮政物流发展的意见

本文指出在满足非洲地区的医疗卫生需求方面，私营部门发挥了重要作用，私营部门在提供医疗卫生服务方面存在明显优势。未来10年，提供医疗卫生服务的项目将占撒哈拉以南的非洲大部分地区总投资机遇的一半，其余投资机遇将分布在分销和零售、生命科学、风险共担和医科教育领域。     

The perception of fire risk by older people and its impact on relevant fire safety education

Accidents due to ‘fire and flames’ are second only to “falls” as the most important cause of accidental death in the homes of elderly individuals throughout the United Kingdom. This study aims to ascertain whether older people are receiving fire accident advice appropriate to their needs. A questionnaire addressing the issues of risk perception, fire preventative action and access to fire safety information was distributed to 1100 randomly selected members of the ‘Thousand Elders’ (a nation-wide consumer group established by the Centre for Applied Gerontology at The University of Birmingham, comprising people above the age of 50 years). Eight hundred and four questionnaires were returned and were analysed using the Statistical Package for Social Sciences. Fire risk was perceived as far less of an immediate threat than the danger of a personal attack by an intruder in the home. Recognition of fire risk and the effectiveness of fire safety measures did not result directly in safety appliances being fitted. The majority of ‘Elders’ had received no fire-fighting training, yet more than half felt confident in tackling a small fire. Neither did experience of a fire in the home necessarily increase action towards safety precautions. The majority had not been exposed to a fire safety campaign in the past 12 months. On exposure to a campaign, the impact towards fire safety was positive. The educational process should aim to close the gap between the recognition of the need for fire safety precautions and the implementation of fire safety measures. The key to effective fire prevention amongst older people depends upon: Information, Training and Support, i.e., relevant information supported by practical help and subsequent practical training in-situ by trusted community figures.     

Productivity,Preferences and UIP Deviations in an Open Economy Business Cycle Model

We show that a flex-price two-sector open economy DSGE model can explain the poor degree of international risk sharing and exchange rate disconnect. We use a suite of model evaluation measures and examine the role of (1) traded and non-traded sectors; (2) financial market incompleteness; (3) preference shocks; (4) deviations from UIP condition for the exchange rates; and (5) creditor status in net foreign assets. We find that there is a good case for both traded and non-traded productivity shocks as well as UIP deviations in explaining the puzzles.     

Raising the bar (11)

This editorial summarizes the papers published in issue 14(2) so as to raise the bar in applied spatial economic research and highlight new trends. The first paper deals with past and current challenges for regional science research. The second paper investigates whether people living in deprived neighbourhoods have less chance of succeeding in a job application. The third paper finds evidence that real estate firms can avoid price competition when market shares of their allies increase in the vicinity. The fourth paper is methodological: it considers a spatial autoregressive (SAR) model with heterogeneous coefficients and extensively analyzes the impact of this extension on the direct and indirect effects estimates. The fifth paper proposes an innovative method to estimate the elements of the spatial weight matrix in a spatial econometric model. The final paper is econometric–theoretical: it proposes a new generalized method of moments (GMM) estimator of the coefficients of a SAR model if the error terms are heteroskedastic of an unknown form.