The determinants of breast-feeding in sri lanka

Breast-feeding is the focus of rapidly growing interest. Research on the determinants of breast-feeding is only beginning. The research in this paper is based on World Fertility Survey data for Sri Lanka. We develop what we believe to be an appropriate probit model and find that there are significant socioeconomic factors that influence breast-feeding, in addition to the demographic factors focused upon in the literature. Moreover, some of them have clear policy implications, which are elaborated herein with respect to labor force, education, family planning and internal migration policies. In the course of the paper we also address a number of generally neglected statistical issues that should be considered in analyzing the determinants of breastfeeding, including problems resulting from digit preference or age heaping, the need to use dichotomous dependent variables, unavoidable truncation biases in the basic data, and structural shifts in the determinants of breastfeeding at different durations.     

Pay-as-you-go social security in a changing environment

In this paper, we examine the optimal pay-as-you-go social security scheme which reallocates resources across generations in a changing environment, that is, with fluctuations in population growth rates and in productivity levels. We use an overlapping generations model along with a social welfare function consisting of the sum of generational utilities either unweighted or weighted by population size and a discount factor. We show how intergenerational resource sharing can be used to improve social welfare even though the extent of intergenerational redistribution is hampered by payroll tax deadweight losses in the spirit of the optimal taxation literature. Also it appears that resource sharing is much more restricted in a closed economy that in an open economy, which is not subject to a national resource constraint at each period of time. This paper was presented at the 1990 ISPE-Conference on the Fiscal Implications of an Ageing Population, Vaalsbroek Castle, Netherlands. The authors wish to thank the participants and particularly B. van Praag and W. Peters for their comments. They also thank the two referees and Philippe Michel for very helpful comments and discussions. The financial support of CIM during his sabbatical year is greatly acknowledged by the second author.     

Insider Trading,Stochastic Liquidity,and Equilibrium Prices

We extend Kyle's (1985) model of insider trading to the case where noise trading volatility follows a general stochastic process. We determine conditions under which, in equilibrium, price impact and price volatility are both stochastic, driven by shocks to uninformed volume even though the fundamental value is constant. The volatility of price volatility appears ‘excessive’ because insiders choose to trade more aggressively (and thus more information is revealed) when uninformed volume is higher and price impact is lower. This generates a positive relation between price volatility and trading volume, giving rise to an endogenous subordinate stochastic process for prices.     

QUOTA‐HOPPING IN‐BOND DIVERSION

We show that the U.S. in‐bond system of imports may be used by firms to illegally avoid trade barriers, a practice known as in‐bond diversion. The illicit scheme involves declaring Chinese exports bound for Mexico but diverting them to the U.S. market while in transit, thus creating a gap between Chinese and Mexican reports. Using the phaseout and removal of U.S. quotas at the end of the Multifiber Agreement as a policy experiment, as well as variation in quota bindingness across products, we show that quota‐bound products were associated with larger trade gaps which shrunk following the quota removals. (JEL F13, O17, O19)     

Multivariate hypothesis testing using generalized and {2}-inverses – with applications

The use of generalized inverses in Wald's-type quadratic forms of test statistics having singular normal limiting distributions does not guarantee to obtain chi-square limiting distributions. In this article, the use of {2} -inverses for that problem is investigated. Alternatively, Imhof-based test statistics can also be defined, which converge in distribution to weighted sum of chi-square variables. The asymptotic distributions of these test statistics under the null and alternative hypotheses are discussed. Under fixed and local alternatives, the asymptotic powers are compared theoretically. Simulation studies are also performed to compare the exact powers of the test statistics in finite samples. A data analysis on the temperature and precipitation variability in the European Alps illustrates the proposed methods.     

A comparison of alternative methods to construct confidence intervals for the estimate of a break date in linear regression models

This article considers constructing confidence intervals for the date of a structural break in linear regression models. Using extensive simulations, we compare the performance of various procedures in terms of exact coverage rates and lengths of the confidence intervals. These include the procedures of Bai (1997 Bai, J. (1997). Estimation of a change point in multiple regressions. Review of Economics and Statistics 79:551–563.[Crossref], [Web of Science ®] , [Google Scholar]) based on the asymptotic distribution under a shrinking shift framework, Elliott and Müller (2007 Elliott, G., Müller, U. (2007). Confidence sets for the date of a single break in linear time series regressions. Journal of Econometrics 141:1196–1218.[Crossref], [Web of Science ®] , [Google Scholar]) based on inverting a test locally invariant to the magnitude of break, Eo and Morley (2015 Eo, Y., Morley, J. (2015). Likelihood-ratio-based confidence sets for the timing of structural breaks. Quantitative Economics 6:463–497.[Crossref], [Web of Science ®] , [Google Scholar]) based on inverting a likelihood ratio test, and various bootstrap procedures. On the basis of achieving an exact coverage rate that is closest to the nominal level, Elliott and Müller's (2007 Elliott, G., Müller, U. (2007). Confidence sets for the date of a single break in linear time series regressions. Journal of Econometrics 141:1196–1218.[Crossref], [Web of Science ®] , [Google Scholar]) approach is by far the best one. However, this comes with a very high cost in terms of the length of the confidence intervals. When the errors are serially correlated and dealing with a change in intercept or a change in the coefficient of a stationary regressor with a high signal-to-noise ratio, the length of the confidence interval increases and approaches the whole sample as the magnitude of the change increases. The same problem occurs in models with a lagged dependent variable, a common case in practice. This drawback is not present for the other methods, which have similar properties. Theoretical results are provided to explain the drawbacks of Elliott and Müller's (2007 Elliott, G., Müller, U. (2007). Confidence sets for the date of a single break in linear time series regressions. Journal of Econometrics 141:1196–1218.[Crossref], [Web of Science ®] , [Google Scholar]) method.     

Pathways of Black immigrant youth in Québec from secondary school to university: Cumulative racial disadvantage and compensatory advantage of resilience

This article analyzes the educational pathways of Black Canadian immigrant students in Québec with Sub-Saharan African and Caribbean backgrounds. Both racialized groups have been targets of educational and social discrimination and segregation, which compromise their educational pathways. The results obtained from the longitudinal data however, show that some of these students are able to overcome such obstacles. Although they are more susceptible to experiencing major academic difficulties and lag due to grade repetition, and less likely to attend private institutions or to be admitted to enriched programs in public schools, these students have access to college in a proportion comparable to that of their peers whose parents are non-immigrants. This supports the hypothesis of resilience put forward by some authors such as Krahn and Taylor (2005) regarding Canadian students from Sub-Saharan African and Caribbean immigrant families. However, the situation is somewhat reversed with regard to obtaining a college diploma and access to university. They are less likely to have entered university and obtained a postsecondary diploma 10 years after entering secondary school. From this perspective, the resilience hypothesis should be nuanced. In short, their educational pathways are characterized by a dynamic of interaction between the cumulative disadvantage of belonging to a racialized minority and the compensatory benefit of resilience.     

BIDDING FOR HORIZONTAL MULTINATIONALS

We present a model in which governments bid for firms by taxing/subsidizing setup costs. Firms choose both the number and the location of the plants they operate, and the equilibrium industry structure is affected by governments' subsidy choices. We show that the endogenous presence of horizontal multinationals attenuates the race to the bottom and yields some results that run counter to traditional findings in the literature. First, in the presence of multinationals, increasing subsidies decrease firms' profits by exacerbating price competition due to more firms going multinational. Second, instead of being always subsidized, firms may actually be taxed in equilibrium. Last, subsidies may become strategically independent policy instruments, instead of being strategic complements. (JEL: F12, F23, H27, H73, R12)     

RELATIVE RISK AVERSION IS CONSTANT: EVIDENCE FROM PANEL DATA

Most classical tests of constant relative risk aversion (CRRA) based on individual portfolio composition use cross‐sectional data. Such tests must assume that the distributions of wealth and preferences are independent. We use panel data to analyze how individuals’ portfolio allocation between risky and riskless assets varies in response to changes in total financial wealth. We find the elasticity of the risky asset share to wealth to be small and statistically insignificant, supporting the CRRA assumption; this finding is robust when the sample is restricted to households experiencing large income variations. In addition, we find a small but significant negative correlation between wealth and risk aversion. Various extensions are discussed.     

DO PRICES TRANSMIT RATIONALLY EXPECTED INFORMATION?

A simple model with asymmetric information, in which inventory holders or traders submit demand curves to an auctioneer, has a unique partially revealing equilibrium. We wonder whether the agents can plausibly coordinate on this equilibrium through “eductive” reasoning relying on common knowledge. The analysis stresses the role of two effects, sensitivity and amplification, whose product should be small enough. The property is obtained whenever the equilibrium excess demand is steep enough, i.e., when the search for information does not distort demand too much. Neither the influence of the number of informed agents nor that of noise trading are monotonic. Real‐time learning has strikingly different features. (JEL: D82, D84)