Joint Income-Wealth Inequality: Evidence from Lucerne Tax Data

Social Indicators Research - Using tax data from the Swiss canton of Lucerne, we study how measures of economic inequality change if they account for income and wealth rather than income alone....     

A tutorial on rank-based coefficient estimation for censored data in small- and large-scale problems

The analysis of survival endpoints subject to right-censoring is an important research area in statistics, particularly among econometricians and biostatisticians. The two most popular semiparametric models are the proportional hazards model and the accelerated failure time (AFT) model. Rank-based estimation in the AFT model is computationally challenging due to optimization of a non-smooth loss function. Previous work has shown that rank-based estimators may be written as solutions to linear programming (LP) problems. However, the size of the LP problem is O(n ²+p) subject to n ² linear constraints, where n denotes sample size and p denotes the dimension of parameters. As n and/or p increases, the feasibility of such solution in practice becomes questionable. Among data mining and statistical learning enthusiasts, there is interest in extending ordinary regression coefficient estimators for low-dimensions into high-dimensional data mining tools through regularization. Applying this recipe to rank-based coefficient estimators leads to formidable optimization problems which may be avoided through smooth approximations to non-smooth functions. We review smooth approximations and quasi-Newton methods for rank-based estimation in AFT models. The computational cost of our method is substantially smaller than the corresponding LP problem and can be applied to small- or large-scale problems similarly. The algorithm described here allows one to couple rank-based estimation for censored data with virtually any regularization and is exemplified through four case studies.     

Faire Formeln

The literature on fair division has experienced a renaissance recently. Novel mathematical procedures promising an envy-free, socially efficient solution to conflicts over nearly indivisible goods play a particularly prominent role. This article presents a comparative experimental evaluation of three procedures. We examine to what extent features of the subjects of the procedures influence the choice in favor of one of the three negotiation protocols and the results of the division. Our analysis of the behavior of 119 subjects shows that psychological factors only affect the procedural choice. Dominance-seeking individuals tend to opt for those procedures that promise a fairer outcome than the relatively crude divide-and-choose-mechanism. In contrast, the outcome of the bilateral negotiations is determined by the attributes of the procedures. The strong influence of psychological factors at the initial stage of the bargaining process nevertheless casts strong doubts on the practicability of the procedures, recommended by the normative strand of game-theoretic negotiation analysis. The further development of ”fair formulas” for the resolution of redistributive conflicts should not neglect that the warring parties have to agree with the philosophy of the proposed bargaining protocol.     

Ideal Values and Counter‐ideal Values as Two Distinct Forces: Exploring a Gap in Organizational Value Research

Motives and values at work have long been key topics of business and management studies. In a focused review of the literature on the nature of human values, this paper identifies a disconnect with the literature on human motivation, despite the otherwise inherent relatedness of the two fields. Specifically, extant theory and research have conceptualized values generally in terms of ideals, namely desired end‐states that individuals strive to approach. Although values, by this definition, express motivational concerns, theories of human motivation suggest that there are two forces to consider, i.e. approach and avoidance motivation. By applying this ‘two forces’ perspective to value research, this paper identifies a gap in the literature on values: namely, the idea that individuals are also influenced by counter‐ideal values, i.e. end‐states that they deliberately seek to avoid. The identification of this gap opens up new opportunities for value research in general and organizational value research in particular. To pave the way for future research, this paper critically discusses the few studies that have taken first steps in that direction and outlines research questions that may follow for issues such as employer branding and person–organization fit. This paper closes by providing suggestions on how to tackle the issue in organizational practice.     

Child mortality and fertility decline: Does the Barro-Becker model fit the facts?

I compare the predictions of three variants of the altruistic parent model of Barro and Becker for the relationship between child mortality and fertility. In the baseline model fertility choice is continuous, and there is no uncertainty over the number of surviving children. The baseline model is contrasted to an extension with discrete fertility choice and stochastic mortality and a setup with sequential fertility choice. The quantitative predictions of the models are remarkably similar. While in each model the total fertility rate falls as child mortality declines, the number of surviving children increases. The results suggest that factors other than declining infant and child mortality are responsible for the large decline in net reproduction rates observed in industrialized countries over the last century. Financial support by the National Science Foundation (grant SES-0217051) and the UCLA Academic Senate is gratefully acknowledged. I thank Sebnem Kalemli-Oczan, Rodrigo Soares, and two anonymous referees for comments that helped to substantially improve the paper. Olesya Baker and Ilya Berger provided excellent research assistance. Responsible editor: Junsen Zhang.     

The Institutional Challenge of the ACP/EU Economic Partnership Agreements

The Economic Partnership Agreements between the African, Caribbean and Pacific countries and the European Union should serve as an opportunity to accelerate ACP global and regional trade integration and as an important tool for development and the eradication of poverty. There are, however, a number of preconditions. This article argues that institutional quality plays a key role in successful trade liberalisation. In fact, only countries with high‐quality institutions, partly in the form of good government regulation, are likely to benefit from trade. Unfortunately, the vast majority of African countries have excessive regulation that hinders them from taking advantage of trade. The necessary reforms to resolve this problem pose significant challenges, implying major risks for these countries in the EPA process.