Risk vulnerability: a graphical interpretation

The article gives a graphical interpretation of the concept of risk vulnerability. It shows that in a specific context of binary lotteries the assumption of risk vulnerability adds to prudence what the assumption of decreasing absolute risk aversion adds to risk aversion. We end the presentation showing that results can be extended to the concept of multiplicative risk vulnerability.     

From Rags to Riches? Immigration and Poverty in Spain

This article for first time explores the relationship between immigration and poverty in Spain. Using recent Spanish household surveys, it is found, first, that both moderate and severe poverty are more acute among immigrants than among nationals and social transfers play no substantial role in reducing monetary deprivation in the case of foreign-born population; in the second place, we perform an econometric analysis that shows that the different poverty risk faced by local and immigrant households is not driven by differences in basic household and demographic characteristics.     

Markov-switching generalized additive models

We consider Markov-switching regression models, i.e. models for time series regression analyses where the functional relationship between covariates and response is subject to regime switching controlled by an unobservable Markov chain. Building on the powerful hidden Markov model machinery and the methods for penalized B-splines routinely used in regression analyses, we develop a framework for nonparametrically estimating the functional form of the effect of the covariates in such a regression model, assuming an additive structure of the predictor. The resulting class of Markov-switching generalized additive models is immensely flexible, and contains as special cases the common parametric Markov-switching regression models and also generalized additive and generalized linear models. The feasibility of the suggested maximum penalized likelihood approach is demonstrated by simulation. We further illustrate the approach using two real data applications, modelling (i) how sales data depend on advertising spending and (ii) how energy price in Spain depends on the Euro/Dollar exchange rate.     

Fast and robust estimators of variance components in the nested error model

Usual fitting methods for the nested error linear regression model are known to be very sensitive to the effect of even a single outlier. Robust approaches for the unbalanced nested error model with proved robustness and efficiency properties, such as M-estimators, are typically obtained through iterative algorithms. These algorithms are often computationally intensive and require robust estimates of the same parameters to start the algorithms, but so far no robust starting values have been proposed for this model. This paper proposes computationally fast robust estimators for the variance components under an unbalanced nested error model, based on a simple robustification of the fitting-of-constants method or Henderson method III. These estimators can be used as starting values for other iterative methods. Our simulations show that they are highly robust to various types of contamination of different magnitude.     

Cross-border partnership – the impact of institutions on creating the borderland communities (the case of Spree-Neisse-Bober Euroregion)

The aim of the paper is to present the cooperation nets generated as a result of the operation of an organization of a cross-border scope and impact, and such is the Spree-Neisse-Bober Euroregion, and to evaluate and assess their role in creating the bonds among the inhabitants. The main research area is the role that the SNBE plays in creating social connections. The authoresses will pay close attention to: the characteristics of Polish-German relations in the borderland; existing social networks within the frames of created partnerships, and the role of the Euroregion as an institution fostering the development of transborder community. The analysis presented here is the result of the research project “Trust beyond Borders. Sprewa-Nysa-Bóbr Euroregion in Perspective of Integrating Processes in Polish-German Borderland”. Conducted in 2013, it used content analysis, survey (800 respondents) and unstructured interviews (70 experts from Poland and Germany) methods.     

Estimation of Some Nonlinear Panel Data Models With Both Time-Varying and Time-Invariant Explanatory Variables

The so-called “fixed effects” approach to the estimation of panel data models suffers from the limitation that it is not possible to estimate the coefficients on explanatory variables that are time-invariant. This is in contrast to a “random effects” approach, which achieves this by making much stronger assumptions on the relationship between the explanatory variables and the individual-specific effect. In a linear model, it is possible to obtain the best of both worlds by making random effects-type assumptions on the time-invariant explanatory variables while maintaining the flexibility of a fixed effects approach when it comes to the time-varying covariates. This article attempts to do the same for some popular nonlinear models.     

Geopolitics and religion – a mutual and conflictual relationship. Spatial regulation of creed in the Baltic Sea Region

The geopolitical history of religion in the Baltic Sea area shows a development from the time of the Lutheran Reformation of a mosaic of states with very different jurisdictions of creed, from the tolerance under local containment of the Polish-Lithuanian Commonwealth to the strict Evangelical mono-religion of the Scandinavian countries. With seventeenth-century mercantilism, groups of skilled people of ‘foreign’ religion were invited to newly founded towns and ironworks in order to promote the economy. In the eighteenth-century enlightened absolute monarchs, defying both church and bourgeoisie, allowed groups of Catholics and Jews to Scandinavia under spatial restrictions on settlement. In Russia non-Russians of different religions were tolerated, while dissidents to the Orthodox Church were deported to peripheral places. With the Prussian territorial expansion in Germany, more groups were included into citizenship, including Jews. The last states to include groups of ‘foreign’ creed were the early nineteenth century semi-independent states of Norway and Finland.