Bias Correction in the Dynamic Panel Data Model with a Nonscalar Disturbance Covariance Matrix

Approximation formulae are developed for the bias of ordinary and generalized Least Squares Dummy Variable (LSDV) estimators in dynamic panel data models. Results from Kiviet [Kiviet, J. F. (1995), on bias, inconsistency, and efficiency of various estimators in dynamic panel data models, J. Econometrics68:53-78; Kiviet, J. F. (1999), Expectations of expansions for estimators in a dynamic panel data model: some results for weakly exogenous regressors, In: Hsiao, C., Lahiri, K., Lee, L-F., Pesaran, M. H., eds., Analysis of Panels and Limited Dependent Variables, Cambridge: Cambridge University Press, pp. 199-225] are extended to higher-order dynamic panel data models with general covariance structure. The focus is on estimation of both short- and long-run coefficients. The results show that proper modelling of the disturbance covariance structure is indispensable. The bias approximations are used to construct bias corrected estimators which are then applied to quarterly data from 14 European Union countries. Money demand functions for M1, M2 and M3 are estimated for the EU area as a whole for the period 1991: I-1995: IV. Significant spillovers between countries are found reflecting the dependence of domestic money demand on foreign developments. The empirical results show that in general plausible long-run effects are obtained by the bias corrected estimators. Moreover, finite sample bias, although of moderate magnitude, is present underlining the importance of more refined estimation techniques. Also the efficiency gains by exploiting the heteroscedasticity and cross-correlation patterns between countries are sometimes considerable.     

The Impact of Macro- and Micro-Economic Uncertainty on Family Formation in The Netherlands

In this paper, we study the impact of macro- and micro-economic uncertainty on family formation between 1970 and 2000 in The Netherlands. Using data of the Family Survey Dutch Population, we analysed the monthly hazard rates of experiencing the transition into first union, first marriage and parenthood after the start of the relationship of 365 male and 364 female partners by applying piecewise-constant exponential models. The results show that macro-economic uncertainties, i.e. high unemployment rates, lead to postponement of the first union and marriage, but not of the first child. In addition, we found that this relationship is not interpreted by individual-level employment insecurity, i.e. temporary employment or unemployment, which does not seem to prevent people from making long-term family commitments. Although hypothesized, we did not find that the negative effects of macro- and micro-level insecurities on family formation reinforce each other or that they vary between individuals with different educational qualifications.     

OLS and IV estimation of regression models including endogenous interaction terms

We analyze a class of linear regression models including interactions of endogenous regressors and exogenous covariates. We show how to generate instrumental variables using the nonlinear functional form of the structural equation when traditional excluded instruments are unknown. We propose to use these instruments with identification robust IV inference. We furthermore show that, whenever functional form identification is not valid, the ordinary least squares (OLS) estimator of the coefficient of the interaction term is consistent and standard OLS inference applies. Using our alternative empirical methods we confirm recent empirical findings on the nonlinear causal relation between financial development and economic growth.     

The Impact of Macro-Economic Circumstances and Social Protection Expenditure on Economic Deprivation in 25 European Countries, 2007–2011

In this study, we investigate to what extent macro-economic circumstances and social protection expenditure affect economic deprivation. We use three items from round five of the European Social Survey (2010–2011) to construct our latent outcome variable, which we label economic deprivation in the 3 years before 2010–2011. The results of our linear multilevel regression analyses indicate that in countries that perform worse economically, individual experiences of economic deprivation are more prevalent: the stronger the rise in the unemployment rate and the lower a country’s wealth, the more economic deprivation individuals experience. We also find that in countries with high levels of social protection, people experience less economic deprivation as compared to countries with low levels of social protection. In turn, adverse economic conditions in a country temper these positive outcomes of social welfare arrangements. Finally, our study reveals that the strength of the relationship between a low income and economic deprivation strongly varies according to the economic circumstances in a country and the generosity of the welfare state.     

Understanding barriers to healthy behaviors in black college men

Objective: Due to the short life expectancy of black men, it is important to understand what impacts health behaviors in this group so that interventions and programs can be developed to improve their health behaviors which may help in increasing the life expectancy of black men. The purpose of this study was to understand what perceived barriers exist for black college men that prevent them from engaging in healthy behaviors. Participants and Methods: Thirty-five black male students at a southern Historically Black College and University participated in five focus groups and four interviews. A qualitative analysis was used to analyze data for similar themes and codes. Results: Perceived barriers to engaging in healthy behaviors appear to be influenced by image, food cost, and education. Cues to action for not engaging in healthy behaviors appear to be related to role models. Conclusions: Black college men are not adequately informed or educated about elements that can impact their health and how they can improve it. College administrators and researchers should develop interventions that include elements of increasing health knowledge and age-appropriate role models to improve health behavior change among this group.     

Queer-friendly nation? The experience of Chinese gay immigrants in Canada

In the past decade, the People’s Republic of China has become the leading source country of immigrants to Canada. However, little is known about the experience of Chinese gay immigrants in Canada. Using narratives collected through a qualitative study, we show the way in which Chinese gay men construct their experience of immigration in Canada. Unlike the national discourse that claims Canada is a friendly nation for members of the LGBTTQ community, the experiences of Chinese gay immigration present a different story. As racialised gay men, they continue to be subjected to social violence in Canada – albeit differently from what they experienced in China. The analysis demonstrates the complexity of social marginalisation experienced by these men, the understanding of which is essential for social workers to engage in practice with them that is socially transformative.     

Earnings,relative income,and family formation

The probability of first marriage for men who graduated from Wisconsin high schools in 1957 was analyzed with respect to their Social Security earnings records, Wisconsin income tax reports for parents, and other variables. The findings provide no support for Easterlin's hypothesis that marriage will occur earlier when young men judge their economic prospects favorably with respect to their parents' income. However, young men's earnings and time spent in schooling to increase them were found to be important influences on marriage timing. Additional schooling had little effect net of the time it absorbed.     

The effects of learning and forgetting on the optimal lot size quantity of intermittent production runs

This paper studies the effects of learning and forgetting on the production lot size problem with infinite and finite planning horizons. It is assumed that the determination of the economic manufactured quantity (EMQ) in the succeeding production run is dependent on: (1) the maximum inventory accumulated prior to interruption; (2) the length of the interruption period which incurs total forgetting; and (3) the level of experience in equivalent units remembered at the start-up of the next production run. The optimum operating inventory doctrines is obtained by trading off procurement cost per unit time and the inventory carrying cost per unit time, so that their sum will be a minimum. A numerical example is presented to demonstrate the application of learning and forgetting to the determination of the EMQ.     

A migration model of pleasure travel

Pleasure travel has become an institutionalized feature of the social life of modern industrial societies, involving large numbers of people and a great number and variety of human organizations. Pleasure travel may be seen as a special type of migration; therefore, Everett Lee's theory of migration was used as a guideline to review the literature and as a heuristic device to construct a demographic theory of pleasure travel. The result of this effort was an inventory of propositions that summarized the conclusions of that literature. These propositions suggest that the volume of pleasure travel from place to place is related to the areal differentiation, the demographic differentiation, and the economic development of those places, as well as the relative difficulty of the intervening obstacles separating them. The propositions also suggest that streams of pleasure travel tend to follow predictable paths and that travelers are selected by various socioeconomic and demographic characteristics.