Joint tests of non-nested models and general error specifications

This paper is concerned with joint tests of non-nested models and simultaneous departures from homoskedasticity, serial independence and normality of the disturbance terms. Locally equivalent alternative models are used to construct joint tests since they provide a convenient way to incorporate more than one type of departure from the classical conditions. The joint tests represent a simple asymptotic solution to the “pre-testing” problem in the context of non-nested linear regression models. Our simulation results indicate that the proposed tests have good finite sample properties.     

Disruption in Parental Co-habitation and its Effects on Short-Term,Medium-Term,and Long-Term Outcomes of Adolescents

In this paper the relationships between a disruption in parental co-habitation and various categories of adolescent outcomes over multiple time horizons are explored. Using data from the National Longitudinal Study of Adolescent Health (Add Health), we estimated the effects of a change from living with both parents to just one, on academic and employment outcomes, the likelihood to indulge in risky behaviors, mental health outcomes and body mass index measures, from less than 1 year to over 14 years after the change. Propensity score matching methods were used to control for individual characteristics and pre-existing differences in the family environment that may increase the chances of separation, and the results are compared to those obtained using ordinary least squares or probit methods. Results showed evidence of adverse effects of living with one parent in the short term, medium term and long term. Adolescents living with one parent had lower academic achievement in all term lengths, poor mental health in the short to medium term, and were more likely to engage in risky behaviors in the medium to long term.     

Women in Upper Echelons of Management,Tenure and Legal Risk

Integrating risk, gender diversity and upper echelons literatures, we examine whether the presence of women in upper management (top management team (TMT) and board of directors (BOD)) and the tenure of TMTs and BODs are associated with the risk of lawsuits. An analysis of data from firms in the US retail industry shows that the presence of women in TMTs and BODs and the tenure of TMTs and BODs are negatively associated with legal risk, but longer tenured BODs with more women had a positive impact on lawsuits. Implications and suggestions for future research are offered.     

CONTESTS WITH DRAWS: AXIOMATIZATION AND EQUILIBRIUM

We introduce and axiomatize a class of single‐winner contest success functions that embody the possibility of a draw. We then analyze the game of contest that our success functions induce, having different prizes delivered in the occurrence of a win and a draw. We identify conditions for the existence and uniqueness of a symmetric interior Nash equilibrium and show that equilibrium efforts and equilibrium rent dissipation can be larger than in a Tullock contest (with no possibility of a draw) due to increased competition even if the draw‐prize is null. These results suggest that a contest designer may profit from introducing the possibility of a draw. Finally, we show that this approach naturally extends to multiprize contests with multiple draws across different subsets of the set of players. (JEL C72, D72, D74)     

Supply Chain Consequences of Subsidies for Corporate Social Responsibility

The use of government incentives tied to market prices as means of boosting corporate social responsibility (CSR) has expanded notably in recent decades. Enhanced business tax deductions for charitable donations and credits for conservation easements are notable cases. While providing incentives for socially desirable behavior to achieve legislative goals has intuitive appeal, the broader economic consequences are not always fully understood. In this study, we examine such wider consequences for supply chains when subsidies for CSR are offered. One effect we identify is that since incentives are typically tied to market value, firms have not only an added incentive to achieve societal objectives (say by donating inventory) but also an incentive to raise output (retail) market prices. A second consequence is that since firms forgo potential revenues by engaging in socially desired behavior, they become increasingly sensitive to supplier pricing; in an uncoordinated supply chain this leads to input (wholesale) price concessions. Among other things, the results underscore that incentives put in place to meet broader societal objectives also have notable ramifications for suppliers, retailers, and consumers in primary markets.     

On some consistent tests of mutual independence among several random vectors of arbitrary dimensions

Statistics and Computing - Testing for mutual independence among several random vectors is a challenging problem, and in recent years, it has gained significant attention in statistics and machine...     

A one-sided test for testino homogeneity of scale parameters against simple ordered alternative

In an earlier paper the authors (1997) extended the results of Hayter (1990) to the two parameter exponential probability model. This paper addressee the extention to the scale parameter case under location-scale probability model. Consider k (k≧3) treatments or competing firms such that an observation from with treatment or firm follows a distribution with cumulative distribution function (cdf) F_i(x)=F[(x-μ_i)/Q_i], where F(·) is any absolutely continuous cdf, i=1,…,k. We propose a test to test the null hypothesis H₀:θ₁=…=θ_k against the simple ordered alternative H₁:θ₁≦…≦θ_k, with at least one strict inequality, using the data X_i,j, i=1,…k; j=1,…,n₁. Two methods to compute the critical points of the proposed test have been demonstrated by talking k two parameter exponential distributions. The test procedure also allows us to construct simultaneous one sided confidence intervals (SOCIs) for the ordered pairwise ratios θ_j/θ_i, 1≦i<j≦k. Statistical simulation revealed that: 9i) actual sizes of the critical points are almost conservative and (ii) power of the proposed test relative to some existing tests is higher.     

Prevalence of job strain among Indian foundry shop floor workers

Global competition in manufacturing sector demand higher productivity levels. In this context, workers in this sector are set with high output targets, leading to job strain. In addition to the strain, hazardous conditions also prevail in some of the manufacturing processes like foundry activities. This paper attempts to appraise the prevalence of job strain among foundry shop floor workers in India with the help of Demands-Control model [8]. In this study, data was collected through a survey using 49-item Job Content Questionnaire (JCQ) [9], a widely used and well-validated test for job strain. Then the data was subjected to statistical analysis after ascertaining the reliability. This survey has revealed that 25% of workers in foundry were experiencing high job strain. Hazardous working conditions, limited decision making authority, etc. appear to be the main contributing factors for the higher levels of strain.