THE RATE OF RETURN TO MEXICAN AMERICANS AND ANGLOS ON AN INVESTMENT IN A COLLEGE EDUCATION

Rates of return to an investment in a college education are estimated for Mexican American and Anglo male college graduates with majors in business, accounting, education and liberal arts. The returns, estimated for 1967, 1970 and 1973 graduates of Pan American University, are quite substantial for all but the Anglo education majors. The returns to the business and accounting majors substantially exceed those to the other graduates. There was no strong tendency for the rates of return to fall over time nor were there any systematic differences between the returns to the two ethnic groups. This latter result does not imply an absence of labor market discrimination against Mexican American college graduates.     

MONEY, CREDIT, and WAGES IN HYPERINFLATION: POST-WORLD WAR I GERMANY

An important feature of the German hyperinflation is the way in which accelerating monetization of both government and private debt by the Reichsbank fueled the inflation process. The stimulus to private credit demand arising from more rapid adjustment of money wages over this period is often ignored, however. The present empirical results strongly support the importance of wage pressures in augmenting fiscal influences on nominal money growth during 1920–1923. Our findings also suggest that wage claims provided the main conduit through which higher inflationary expectations were accommodated by faster rates of monetary expansion.     

AN ESTIMATE OF THE AGE DISTRIBUTION'S EFFECT ON CARBON DIOXIDE EMISSIONS

We estimate the age distribution's impact on carbon dioxide emissions from 1990 to 2006 by exploiting demographic variation in a panel of 46 countries. To eliminate potential bias from endogeneity or omitted variables, we instrument for the age distribution in a country's current population with lagged birth rates, and the regressions control for total population, total output, and country and year fixed effects. Carbon dioxide emissions increase with the share of the population aged 35 to 49 years, and this result is statistically significant and quantitatively large. (JEL Q4, J1)     

TIME PREFERENCE AND THE DISTRIBUTIONS OF WEALTH AND INCOME

This paper examines the connection between time preference heterogeneity and economic inequality in a deterministic environment. Specifically, we extend the standard neoclassical growth model to allow for (1) heterogeneity in consumers' discount rates, (2) direct preferences for wealth, and (3) human capital formation. The second feature prevents the wealth distribution from collapsing into a degenerate distribution. The third feature generates a strong positive correlation between earnings and capital income across consumers. A calibrated version of the model is able to generate patterns of wealth and income inequality that are very similar to those observed in the United States. (JEL D31, E21, O15)     

Semiparametric Mixtures of Generalized Exponential Families

Abstract.  A semiparametric mixture model is characterized by a non-parametric mixing distribution Q (with respect to a parameter θ ) and a structural parameter β common to all components. Much of the literature on mixture models has focused on fixing β and estimating Q . However, this can lead to inconsistent estimation of both Q and the order of the model m . Creating a framework for consistent estimation remains an open problem and is the focus of this article. We formulate a class of generalized exponential family (GEF) models and establish sufficient conditions for the identifiability of finite mixtures formed from a GEF along with sufficient conditions for a nesting structure. Finite identifiability and nesting structure lead to the central result that semiparametric maximum likelihood estimation of Q and β fails. However, consistent estimation is possible if we restrict the class of mixing distributions and employ an information-theoretic approach. This article provides a foundation for inference in semiparametric mixture models, in which GEFs and their structural properties play an instrumental role.     

SCHOOL QUALITY AND INFORMATION DISCLOSURE: EVIDENCE FROM THE HOUSING MARKET

In this article, we investigate the relationship between school quality and information disclosure in housing markets. When presented with the option of identifying their local public school in a real estate listing, we find that sellers with homes assigned to higher‐performing schools are more likely to provide this information. We find more evidence of selective disclosure in 2001–2002 than in 2006–2007, when the costs of gathering and disclosing information on school assignments and quality were lower. Furthermore, we find more evidence of strategic behavior among sellers of large single‐family units that presumably appeal to families with children. After controlling for school quality, information disclosure does not appear to affect housing prices. Taken together, our results support the findings of the education literature on the importance of school quality capitalization in residential real estate and they provide the first evidence of strategic information disclosure in housing markets. (JEL L15, I20, R31)     

AN ANALYSIS OF THE ACCURACY OF "TRIAL HEAT" POLLS DURING THE 1992 PRESIDENTIAL ELECTION

There is little systematic research on the multitude of factorsthat influence the accuracy of poll results. This article examinessix methodological factors directly under the survey researcher'scontrol and two exogenous factors concerning the nature of publicopinion as sources of survey error. Data for this study comefrom 56 "trial heat" polls conducted during the last month ofthe 1992 presidential election. The most important variablesinfluencing survey accuracy were the number of days a poll isin the field, which increased total accuracy one-half of a percentagepoint per day; conducting interviews only on weekdays (and thusonly during evening hours), which reduced overall accuracy ratesby more than 1 percentage point; and conducting a "tracking"poll, which increased accuracy by about 1.5 points. Sample sizewas not related to accuracy rates. Results also indicated thatsampling frames of "likely voters" (relative to "registeredvoters") tended to overestimate support for George Bush andunderestimate support for Ross Perot, that interviewing onlyon weekdays led to overestimates of support for Bush, and thatstrict methods of defining a respondent as "supporting" a candidatehurt the two newcomers, Perot and Bill Clinton, more than Bush.In light of these data it is recommended that the common practiceof reporting "margins of error" based solely on sample sizesbe abandoned as misleading and replaced by a more empiricallyjustifiable measure based more on response rates.     

Energy Conservation and Attitudes toward Technology

An exploratory survey of a small suburban community near LosAngeles investigated the attitudes and values underlying acceptanceof technological applications, examined the relationship ofgeneral attitudes toward technology to conservation attitudesand behavior during the energy crisis of 1973–1974, andcontrasted college students with the surrounding community intheir regard for technology and energy conservation. Two distinctdimensions of attitudes toward technology utility and affect–weredefined and found to relate to belief in the reality of theenergy crisis and preferred solutions, but not to reported conservationbehavior. Moreover, in contrast to popular images, no strongantitechnology sentiment was found among the college sample