Maximum Likelihood Estimation of Input Demand Models with Fixed Costs of Adjustment

Traditional models of input demand rely upon convex and symmetric adjustment costs. However, the fortune of this highly restrictive approach is due more to analytical convenience than to empirical relevance. In this note we examine the model under more realistic hypothesis of fixed costs, show that it can be cast in the form of a Double Censored Random Effect Tobit Model, derive its likelihood function, and finally evaluate the performance of the ML estimators through a Monte Carlo experiment. The performances, although strongly dependent on the degree of censoring, appear to be promising.     

Deposit Insurance,Institutions, and Bank Interest Rates

Many recent institutional reforms of the financial system have relied on the introduction of an explicit scheme of deposit insurance. This instrument aims at two main targets, contributing to systemic stability and protecting depositors. However, it may also affect the interest rate spread in the banking system, which can be viewed as an indicator of either inefficiency or market power in this financial segment. This paper provides an empirical investigation of the effect of deposit insurance and other institutional and economic variables on bank interest rates across countries. We find that deposit insurance increases the lending–deposit spread in banking. The main effect seems to arise not from the deposit side though, but from an increase in the lending rate. We interpret this result as evidence of the presence of moral hazard problems related to this instrument. We also find that higher quality of institutions is associated with lower spreads, thus contributing to eroding sources of market power in the banking sector.     

The econometrics of female labor supply and children

This is a survey of applied econometric research on the effects of children on female labor supply. Reasons for interest in the topic, and a basic model and terminology, are reviewed. Concerns are raised about the possible endogeneity of child status variables, and about the instrumental variables approach for dealing with this problem. Alternative ways of conceptualizing and estimating child status effects are considered, together with selected empirical evidence. Relevant developments from the household demand literature are summarized. Basic issues of model choice are also discussed.     

Ninth-Grade Students' Attitudes Toward Nontraditional Occupations

This study explored how students choose careers, their attitudes toward vocational education, and whether or not they would consider enrolling in a nontraditional vocational education program.     

Partner Choice and the Differential Retreat From Marriage

The contemporary retreat from marriage in the United States has had a differential impact across socioeconomic and racial groups. Here, 1990 marriage rates and propensities for Virginia, North Carolina, and Wisconsin are analyzed regarding (a) the likelihood that persons in different groups ever marry and (b) patterns of partner choice with respect to race and educational level. Marriage remains strong in most race‐education groups but is substantially lower among Blacks and among those with less than 12 years of education. Patterns of partner choice have shifted to show greater symmetry between the educational levels of brides and grooms. Changes have been modest with regard to the level and pattern of interracial (Black‐White) marriage. Marriage is increasingly a union of equals, but a union chosen more by Whites than by Blacks and more by the well educated than by the poorly educated.     

Book reviews

Nathan Glazer Ethnic Dilemmas Harvard, Harvard University Press. 1985

Giddens, Anthony The Constitution of Society, Berkeley, University of California, 1985, pp.XXXVII, 402. Notes, glossary, diagrams, bibliographic notes and index.

Jeremy Rifkin Declaration of a Heretic. Boston. London, Melbourne and Henley, Routledge and Kegan Paul, 1985, pp.X,140.

Ted Benton The Rise and Fall of Structural Marxism: Althusser and his Influence, New York, St.Martin's Press, 1984, pp. VII,259.

Raymond L. Garthoff Détente and Confrontation Washington, The Brookings Institution, 1985, pp.XVI,1126.

Joseph J. Collins The Soviet Invasion of Afghanistan. A Study in the Use of Force in Soviet Foreign Policy, Massachusetts/Toronto, D.C. Heath and Company/Lexington, 1986, pp. XV, 195.

Jan Shipps Mormonism: The Story of a New Religious Tradition, Chicago, University of Illinois Press, 1985, pp.211.

Robert Jay Lifton Home from the War: Vietnam Veterans: Neither Victims nor Executioners, New York, Basic Books, 1985, pp.478     

Differential predictors of academic achievement: individual and familial factor interactions with community poverty

We present an analysis of the contexts within which adolescents graduate from high school and enroll in college. Data from the National Longitudinal Study of Adolescent Health show that adolescents’ school engagement, maternal academic monitoring, and community poverty significantly interact to explain differences in high school graduation and college enrollment rates (n?=?7100). To examine this association, we performed weighted logistic regression analyses, controlling for gender, race, block level unemployment, and block level median income. Findings suggest that protective factors can help youth overcome the challenges associated with community poverty and achieve academically in low and medium levels of poverty, but that youth in high-poverty contexts may need more resources to reach higher levels of academic attainment.     

Students Mobility: Assessing the Determinants of Attractiveness Across Competing Territorial Areas

A central question for education authorities has become “which factors make a territory attractive for tertiary students?” Tertiary education is recognised as one of the most important assets for the development of a territory, thus students’ mobility becomes a brain drain issue whenever there are prevalent areas that attract students from other territories. In this paper, we try to identify the most important factors that could affect student mobility in Italy. In doing that we analyse students’ flows across competing territorial areas which supply tertiary education programs. We will consider a wide range of determinants related to the socio-economic characteristics of the areas as well as resources of the universities in the territories in terms of variety and quantity of the degree programs there available, financial endowments provided by Central Government, and services available to students. The Bradley–Terry modelling approach based on pair comparisons has been adopted to define the attractiveness of competing territories and assess how much the detected divergences can be attributed to factors directly related to the considered characteristics of the universities in the territory and how much is ascribable to inherent characteristics of the areas where the universities are located such as the labour market conditions. Furthermore, the adopted approach allows us to consider uncertainty in defining territorial attractiveness and making comparisons. In this way, we would like to provide some evidences to assess if the rules currently used by the Central Government to finance public universities on the basis of their capabilities to attract students really reward the efforts made by the university system in the area to improve their standard of quality or, on the contrary, reward the territorial features.     

Therapeutic Assessment with Children in Family Therapy

Therapeutic Assessment with Children (TA‐C) is a brief semi‐structured intervention in which psychological assessment is used to help families with children and adolescents to change. In this paper we introduce the TA‐C model, describe its semi‐structured format and exemplify how it can be applied by family therapists.