A SEMIPARAMETRIC DISCRETE CHOICE MODEL: AN APPLICATION TO HOSPITAL MERGERS

We propose a computationally simple semiparametric discrete choice estimator to model rich consumer heterogeneity. We assume groups of observably similar consumers have similar preferences, but allow preferences to vary freely across these groups. Model flexibility is easily adjusted by setting a single tuning parameter; we suggest a cross‐validation method to do so. We analyze the model's properties in the context of hospital mergers, both analytically and via a Monte Carlo analysis. The model performs well for policy relevant substitution and welfare measures, even if misspecified, when the tuning parameter is set within the neighborhood of the value chosen by cross validation. (JEL C14, D12, I11, L41)     

A DEFINITION OF GENERALIZED CORRELATION AND ITS APPLICATION FOR PORTFOLIO ANALYSIS

This paper presents a partial solution to the problem: what is a “useful” concept of correlation within the context of the general expected utility model? We develop a concept of generalized correlation and show that it is “useful,” by establishing some new “diversification theorems” for the expected utility portfolio-choice model. Our main results are for a two asset model, but we are able to establish some n-asset results which are of some practical interest. Some “non-diversification theorems” are also derived.     

DISENTANGLING DEMAND‐ENHANCING AND TRADE‐COST EFFECTS OF MAXIMUM RESIDUE REGULATIONS

Maximum residue level (MRL) regulations in plant products can create unnecessary trade barriers on one hand and enhance demand via risk mitigation or quality assurance on the other. We stipulate a generalized gravity equation model to disentangle the effects of MRLs on the import demand and foreign exporters' supply. Applying the framework to the MRLs on pesticides imposed by high‐income Organization for Economic Co‐operation and Development countries, we find that the MRLs jointly enhance the import demand and hinder foreign exporters' supply. In addition, exporters from the less and least developed countries are more constrained by the MRLs than their competitors from the developed world. (JEL F14, Q17)     

SOME ASPECTS OF NEGOTIATED ORDER,LOOSE COUPLING AND MESOSTRUCTURE IN MAXIMUM SECURITY PRISONS*

Even in total institutions, control is far from total. In custodial organizations, for example, staff and inmates negotiate their own interpretation of the social order, often rejecting formal rules and control techniques, and substituting alternatives that may be just as formal, although tacit, as those they replace. This creates “gaps” betwen formal organizational structure and individual behaviors which partially decouple formal rules from the behaviors intended to carry out those rules. This study integrates organizational and prison research to develop the concepts of negotiated order, loose coupling, and me-sostructure. The goal is to examine the context in which negotiations occur and the manner in which negotiated order activates the interactions and understandings through and by which organizational structure is generated and maintained.     

FIELD NOTES: A CONCEPTUAL APPLICATION OF ATTACHMENT THEORY AND RESEARCH TO THE SOCIAL WORK STUDENT-FIELD INSTRUCTOR SUPERVISORY RELATIONSHIP

This article conceptualizes an attachment-based model of the student–field instructor relationship, based on empirical research concerning internal working models of attachment, which continue into adulthood and serve as templates for life-long relating. Supportive relationships within a noncritical context are salient for effective supervision; attachment theory provides a framework for developing supportive supervisory relationships and augments existing theories of supervision. Ideal and problematic supervisory relationships are presented followed by recommendations for interventions and future research. The supervisory relationship will be most successful when the field instructor is guided by attachment theory and its conceptualization of a "secure base" (Bowlby, 1988).     

A MODEL OF OPTIMAL PLANT SIZE WITH AN APPLICATION TO THE DEMAND FOR COGNITIVE ACHIEVEMENT AND FOR SCHOOL SIZE

A model of optimal plant size is developed which predicts that 1) plants experience increasing returns to in-plants inputs, 2) the relative price of plant output is greater in rural areas than in urban areas, and 3) plants are larger in urban areas than in rural areas. The model's predictions appear to be consistent with behavior in a number of consumer services (e. g., grocery, movie, and library services). These predictions are more rigorously tested and are strongly supported when demand functions for cognitive achievement and for school size are estimated. These regressions also lend support to the quality-quantity model of fertility.     

MODERNIZATION, STRUCTURAL CHARACTERISTICS, AND SOCIETAL RATES OF CRIME: AN APPLICATION OF BLAU'S MACROSOCIOLOGICAL THEORY

The objectives of this article are to examine the relationships between several structural characteristics associated with modernity and the ratio of property crimes to homicides, and to develop a theoretical interpretation for such relationships. The proposed interpretation involves an application of Blau's general macrosociological theory. Blau's (1977) theory is concerned with the determinants of intergroup associations. The key to applying his theory to the phenomenon of crime lies in the conceptualization of property crimes as characteristically intergroup interactions, and homicides as ingroup interactions. Blau's theorems concerning the structural determinants of rates of intergroup associations in general can then be extended to account for the relative frequency of these two types of crime. Several specific hypotheses are derived from Blau's theory and are tested with cross-national data. The results are for the most part in accord with theoretical expectations. Moreover, the proposed interpretation for the relationship between modern social structures and the ratio of property crimes to homicides is more consistent with the full pattern of results than are some plausible alternative interpretations.     

A COUNTRY RISK INDEX: ECONOMETRIC FORMULATION AND AN APPLICATION TO MEXICO

Dynamic factor analysis is used to estimate a monthly country risk index for Mexico. This method extracts the unobservable risk information contained in deviations from interest rate parity and allows for hypothesis tests regarding the important determinants of such risk. The results suggest that the ratios of imports to reserves and debt to exports are important determinants of Mexican country risk. The estimated risk index correctly anticipates the Mexican capital controls and financial crisis of August 1982. In addition, the index significantly leads the country risk rating published by Institutional Investor based on commercial bank surveys.     

MEASURING EFFORT INCENTIVES IN A TOURNAMENT WITH MANY PARTICIPANTS: THEORY AND APPLICATION

This article provides an empirical measure to compare incentive effects of different tournament structures. Although there have been many theoretical attempts to analyze incentive effects of a tournament competition, empirical applications are limited as the provided conditions cannot easily be empirically observed. We show that the empirical density of the performance distribution can be used to measure effort incentives in a tournament with many participants. We apply this method to evaluate the grading policy change in the 2008 College Scholastic Ability Test in South Korea. (JEL C70, C51)     

THE SUPERVISORY RELATIONSHIP: AN IDENTIFICATION OF THE PRIMARY ELEMENTS IN THE RELATIONSHIP AND AN APPLICATION OF TWO THEORIES OF ETHICAL RELATIONSHIPS

Many authors on the subject of marriage and family therapy supervision point to the fact that the quality of relationship between supervisor and supervisee is crucial to the process. However, little has been written about the nature of this relationship. This article identifies key elements in the relationship and introduces a theoretical framework for understanding those elements based on the principles of ethical relationships proposed by Ivan Boszormenyi-Nagy and Nell Noddings.     

POWER AND SOLIDARITY IN “INTERRUPTION”: A CRITIQUE OF THE SANTA BARBARA SCHOOL CONCEPTION AND ITS APPLICATION BY ORCUTT AND HARVEY (1985)

The simplistic conception of interruption employed in conversation analysis and survey research reports of male monopoly must be elaborated to include other social meanings in addition to violation of a speaker's rights if it is to account for conversational order or deviance. With no reason to suppose that the narrow, technical sense of interruption and the implacably negative evaluation conversation analysts make about interruption are generally shared throughout the rest of American culture, answers to questions in surveys about interruption cannot be assumed to refer to the category termed interruption in conversation analysis. Dissensus about coding instances of the category are reported and other situated meanings of interruption suggested.     

GRADUATE EDUCATION AND PRIVATE RATES OF RETURN: A REVIEW OF THEORY AND EMPIRICISM

In this paper twelve recent studies regarding private rates of return for graduate education are reviewed and evaluated. Possible sources of error due to data base, methodology and interpretation of results are examined and compared. After this has been done, the authors calculate returns to graduate education with spatial distribution problems and job security incorporated in the model. The article concludes that the typical rate of return method has been pushed about as far as it can go and now is the time for the economic profession to develop more meaningful techniques which will allow us to come to grips with the policy issues regarding the level of support for education.     

A MODEL OF ADDICTION AND SOCIAL INTERACTIONS

Many consumer behaviors are both addictive and social. Understanding how these two phenomena interact informs basic models of human behavior, and matters for policymakers when the behavior is regulated. I develop a new model of demand that incorporates both addiction and social interactions and show that, under certain conditions, social interactions reinforce the effects of addiction. I also show how the dynamics introduced by addiction can solve the pernicious problem of identifying the causal effects of social interactions. I then use the model to illustrate a new and important identification problem for studies of social interactions: existing estimates cannot be used to draw welfare conclusions or even to deduce whether social interactions increase aggregate demand. Finally, I develop a method that allows researchers to distinguish between two common forms of social interactions and draw welfare conclusions. (JEL D11, H20)     

A CENTURY OF HUMAN CAPITAL AND HOURS

An average person born in the United States in the second half of the 19th century completed 7 years of schooling and spent 58 hours a week working in the market. In contrast, an average person born at the end of the 20th century completed 14 years of schooling and spent 40 hours a week working. In the span of 100 years, completed years of schooling doubled and working hours decreased by 30%. What explains these trends? We consider a model of human capital and labor supply to quantitatively assess the contribution of exogenous variations in productivity (wage) and life expectancy in accounting for the secular trends in educational attainment and hours of work. We find that the observed increase in wages and life expectancy accounts for 80% of the increase in years of schooling and 88% of the reduction in hours of work. Rising wages alone account for 75% of the increase in schooling and almost all the decrease in hours in the model, whereas rising life expectancy alone accounts for 25% of the increase in schooling and almost none of the decrease in hours of work. In addition, we show that the mechanism emphasized in the model is consistent with other trends at a more disaggregate level such as the reduction in the racial gap in schooling and the decrease in the cross‐sectional dispersion in hours. (JEL E1, I25, J11, O4)     

A THEORY OF TURNOVER AND WAGE DYNAMICS

We develop a model of turnover and wage dynamics with insurance, match‐specific productivity, and long‐term contracting. The model predicts that wages are downward rigid within firms but can decrease when workers are fired. We apply the model to study the impact of business cycles on subsequent wages and job mobility. Workers hired during a boom have persistent higher future wages if staying with the same firm. However, these boom hires are more likely to be terminated and have shorter employment spells. (JEL C73, D23, D82, J33)     

A MODEL OF FERTILITY AND CHILDREN'S SCHOOLING

A model of fertility and child schooling is developed using the Quality-Quantity Interaction framework proposed by Becker et al. The relationship between fertility and child schooling is shown to depend on the financial constraints faced by households and whether marginal parent-child transfers are in the form of schooling.
Empirical results confirm that fertility and schooling are simultaneously determined. Due to this interaction, fertility is observed to be negatively related to income and independent of mother's education. However, holding child schooling constant, fertility is positively related to both income and mother's education. These results imply that numbers of children are not an inferior commodity and that the growth of women's productivity is not biased against fertility.