FDI AND INCOME INEQUALITY: EVIDENCE FROM A PANEL OF U.S. STATES

This study employs state‐level panel data to explore the relationship between inward foreign direct investment (FDI) and income inequality in the United States. Using panel cointegration techniques that allow for cross‐sectional heterogeneity and cross‐sectional dependence, we find that, in the long run, FDI exerts a significant and robust negative effect on income inequality in the United States. This result for the United States as a whole does not imply that FDI narrows income gaps in each individual state. There is considerable heterogeneity in the long‐run effects of FDI on income inequality across states, with some states (21 out of 48 cases) exhibiting a positive relationship between FDI in income inequality.(JEL F21, D31, C23)     

Explanation and Education in Social Work

Summary Social work education has to confront the problem of workingwith students in developing an understanding of the range ofexplanations that exist in the social sciences and the differentbases of these explanations. One pedagogic approach is to explorea map of categories of explanation based upon different conceptionsof the nature of social science knowledge itself. Such a map,outlined in the paper, would distinguish between physical scienceparadigms and human science paradigms and identify the differentimplications for social work of the various viewpoints. Theteacher cannot remain neutral with regard to explanation inthe social sciences; the author therefore indicates that hisown account is based on a marxist perspective     

ALTRUISM, DEFICIT POLICIES, AND THE WEALTH OF FUTURE GENERATIONS

Available evidence suggests that the generations of most families are linked by altruistic human capital investment, rather than by altruistic financial transfers. What is the consequence of this distinction for the Ricardian Equivalence Theorem? We use a realistically calibrated overlapping generations model to show that, despite the presence of altruistic human capital transfers, deficit policies are likely to reduce the aftertax wealth of future generations. Furthermore, the majority of households in the current-period population would vote in favor of a deficit-financed tax cut.     

Rubbery Polya Tree

Abstract. Polya trees (PT) are random probability measures which can assign probability 1 to the set of continuous distributions for certain specifications of the hyperparameters. This feature distinguishes the PT from the popular Dirichlet process (DP) model which assigns probability 1 to the set of discrete distributions. However, the PT is not nearly as widely used as the DP prior. Probably the main reason is an awkward dependence of posterior inference on the choice of the partitioning subsets in the definition of the PT. We propose a generalization of the PT prior that mitigates this undesirable dependence on the partition structure, by allowing the branching probabilities to be dependent within the same level. The proposed new process is not a PT anymore. However, it is still a tail‐free process and many of the prior properties remain the same as those for the PT.     

Estimation for High‐Dimensional Linear Mixed‐Effects Models Using ℓ1‐Penalization

Abstract. We propose an ?₁‐penalized estimation procedure for high‐dimensional linear mixed‐effects models. The models are useful whenever there is a grouping structure among high‐dimensional observations, that is, for clustered data. We prove a consistency and an oracle optimality result and we develop an algorithm with provable numerical convergence. Furthermore, we demonstrate the performance of the method on simulated and a real high‐dimensional data set.     

The Many-Headed Hydra: Sailors, Slaves, and the Atlantic Working Class in the Eighteenth Century

Abstract This article uses the myth of the many-headed Hydra, commonly employed by members of various ruling classes around the Atlantic to describe the class struggles that surrounded them, to illuminate the history of the working class in the eighteenth century. It concentrates on two groups of workers, wage laborers (especially sailors) and slaves, two zones of the Atlantic, Europe and North America, and four moments in the history of the Atlantic working class: 1747, when, in the Knowles Riot in Boston, sailors and slaves fought the King's press gangs and in so doing created one of the central ideas of the 'Age of Revolution' 1768, when, in the London port strike, sailors, Irish coal heavers, and others pioneered one of the central ideas and activities of the modern working-class movement, the strike; 1776, when, in the American Revolution, sailors and slaves helped to instigate and win the world's first colonial war for liberation; and 1780, when, in the Gordon Riots, the polyglot working class of London liberated the prisons amid the greatest municipal insurrection of the eighteenth century. It argues that fixed, static notions of race, ethnicity, and nationality among historians have obscured a vital world of cooperation and accomplishment within a multi-racial, multi-ethnic, international working class.