Negatively interdependent preferences

We develop a theory of representation of interdependent preferences that reflect the widely acknowledged phenomenon of keeping up with the Joneses (i.e. of those preferences which maintain that well-being depend on “relative standing” in the society as well as on material consumption). The principal ingredient of our analysis is the assumption that individuals desire to occupy a (subjectively) better position than their peers. This is quite a primitive starting point in that it does not give any reference to what is actually regarded as “status” in the society. We call this basic postulate negative interdependence, and study its implications. In particular, combining this assumption with some other basic postulates that are widely used in a number of other branches of the theory of individual choice, we axiomatize the relative income hypothesis, and obtain an operational representation of interdependent preferences. Received: 7 December 1998/Accepted: 24 August 1999     

Computer literacy: It's time to “get back to basics”

This paper argues the need for a back-to-basics approach in computer literacy education. It then presents such an approach. This approach has worked well both in courses designed for majors in computer science and in information systems, as well as in a course designed for nonmajors. The current view of literacy as indicated by courses taught at universities and in industry around the country is that literacy means learning about the computer (lots of terminology) and learning to use microcomputer application packages. It might include a glimpse of programming, but the feeling seems to be that computer users do not need to understand more than packages. We contend that the current approach is not literacy, does not prepare users to use the computer effectively, that the function of the universities is not to teach skills, and that such skills are in fact taught more efficiently if understanding that is true literacy, precedes the teaching of skills.     

Microsimulation as a tool for evaluating redistribution policies

During the last 20 years, microsimulation models have been increasingly applied in qualitative and quantitative analysis of public policies. This paper discusses microsimulation techniques and their theoretical background as a tool for the analysis of public policies. It next analyses basic principles for using microsimulation models and interpreting their results, with emphasis on tax incidence, redistribution and poverty analysis. It then discusses social welfare analysis permitted by microsimulation techniques and points to the limits of present approaches and some directions for future developments.     

Exact and Approximate Distributions of the Maximum Likelihood Estimate in a Simple Factor Analysis Model

We study a factor analysis model with two normally distributed observations and one factor. In the case when the errors have equal variance, the maximum likelihood estimate of the factor loading is given in closed form. Exact and approximate distributions of the maximum likelihood estimate are considered. The exact distribution function is given in a complex form that involves the incomplete Beta function. Approximations to the distribution function are given for the cases of large sample sizes and small error variances. The accuracy of the approximations is discussed     

What Are You Doing Here? 'Non-disabled' people and the disability movement: A response to Robert F. Drake

There appears to be a growing move amongst 'non-disabled' people, who research and work in our area, to justify their involvement. In my view, however, their attempts at justification are doomed to failure. The relation between 'non-disabled' people and the disability movement is very difficult, if not impossible. This is not said in anger or despair but rather this is a political statement. Obviously 'non-disabled' people have a role to play in so far as the aim of the disability movement is to remove disabling social and environmental inequalities. 'Non-disabled' people are going to have to change if we want to succeed and end the reality of our oppression. But this necessarily means that the relation of 'non-disabled' people to the disability movement involves a degree of exclusion.     

On a new goodness‐of‐fit process for families of copulas

A goodness‐of‐fit procedure is proposed for parametric families of copulas. The new test statistics are functionals of an empirical process based on the theoretical and sample versions of Spearman's dependence function. Conditions under which this empirical process converges weakly are seen to hold for many families including the Gaussian, Frank, and generalized Farlie–Gumbel–Morgenstern systems of distributions, as well as the models with singular components described by Durante [Durante ( 2007 ) Comptes Rendus Mathématique. Académie des Sciences. Paris, 344, 195–198]. Thanks to a parametric bootstrap method that allows to compute valid P‐values, it is shown empirically that tests based on Cramér–von Mises distances keep their size under the null hypothesis. Simulations attesting the power of the newly proposed tests, comparisons with competing procedures and complete analyses of real hydrological and financial data sets are presented. The Canadian Journal of Statistics 37: 80‐101; 2009 © 2009 Statistical Society of Canada