The Texaco racial discrimination case and shareholder wealth

We analyze the wealth ejfects of the Texaco racial discrimination lawsuit both on the shareholders of Texaco and its major U.S. competitors. Employing a comprehensive data set which included every case docket entry and every Wall Street Journal article on the case as an experimental stimulus, our findings suggest that the overall cost of the case to Texaco shareholders exceeded $500 million, that Texaco's tribulations had little, if any, impact on the share prices of its major competitors, and that Wall Street Journal coverage of the case was highly correlated with significant changes in Texaco stock prices. This last finding provides significant support for Hite 's suppostion that newspaper editors “key ” on ex post stock price changes in selecting the events to be covered in the next day's edition. The authors are grateful to Kee Chung for helpful comments on earlier drafts and also acknowlege the help-ful assistance of the staff of the law library at the Cecil C. Humphreys School of Law at The University of Memphis.     

ON THE INDEPENDENCE OF THE SAMPLE MEAN AND TRANSLATION-INVARIANT STATISTICS FOR MATRIX NORMAL DISTRIBUTIONS

We present an explicit characterization of the joint dependency structure of an n×p matrix normal random matrix such that the p-dimensional sample mean vector is independent of all translation invariant statistics.     

QUESTION WORDING AND PARTISANSHIP: CHANGE AND CONTINUITY IN PARTY LOYALTIES DURING THE 1992 ELECTION CAMPAIGN

Gallup macropartisanship varies more over time than aggregatemeasures of partisanship employing the standard Michigan SurveyResearch Center (SRC) party identification measure, but previousanalyses do not provide direct evidence about why Gallup macropartisanshipis more variable. Although these differences could result fromthe short-term focus of the Gallup party affiliation question,aggregate-level analyses cannot test the effects of questionwording directly. Between March and October 1992, we conducteda series of question-wording experiments, employing six statewidecomputer-assisted telephone interview (CATI) surveys of Michiganadults, including a four-wave panel study. Our analyses stronglysuggest that the Gallup measure responds more to short-termpolitical conditions and clearly demonstrate that the Gallupmeasure is less stable over time. These individual-level resultshelp explain why Gallup macropartisanship varies more over timethan aggregate measures of partisanship employing the standardSRC measure and raise questions about the degree to which onecan generalize from analyses using the Gallup data to the researchliterature on party identification.     

A Review of Kyoto Protocol Adoption in Russia: Joint Implementation in Focus

Russia’s role in ‘animation’ of the Kyoto Protocol was crucial. Its initial vacillation on ratification was predominantly due to political bargaining with the EU. Domestic economic rationales [i.e. impacts of emission trading and Joint Implementation (JI) projects] were important to a much lesser extent and environmental motives did not seem to play any role in the decision. Since the Protocol entered into force, there have been significant delays in complete establishment of policy implementation frameworks, which are necessary for Russia to start benefiting from JI and emission trading. Only recently, in 2007, have GHG inventories and a national registry been established and the responsibilities for implementation of the Protocol and JI among the government departments have been distributed only to a certain extent. Some constraints hindering JI projects, such as vague legislation, an unfavourable economic climate, lack of commitment to JI projects, corruption, xenophobia, state and agency ‘capture’ still remain.      

Job Insecurity and the Timing of Parenthood: A Comparison between Eastern and Western Germany

This article contributes to the ongoing debate on the economic determinants of fertility behavior by addressing the role of job insecurity in couples’ intentions concerning parenthood and its timing. It starts from the hypothesis that cultural values moderate individuals’ reactions to job insecurity and the way it is related to family formation. With a systematic thematic content analysis of a set of semi-structured interviews with childless men and women around the age of 30 in eastern and western Germany, we are able to show that there are substantial differences in the consequences of job insecurity on intentions to have a first child. In western Germany, a relatively secure job career is expected to precede family formation, and this sequence of transitions is rather rigid, whereas in eastern Germany job security and family formation are thought of and practiced as parallel investments. We suggest that the lack of convergence in family formation patterns between eastern and western Germany after the unification of the country in 1990 is partially related to different attitudes toward job insecurity in the two contexts.     

A regression-based smoothing spline Monte Carlo algorithm for pricing American options in discrete time

American options in discrete time can be priced by solving optimal stopping problems. This can be done by computing so-called continuation values, which we represent as regression functions defined recursively by using the continuation values of the next time step. We use Monte Carlo to generate data, and then we apply smoothing spline regression estimates to estimate the continuation values from these data. All parameters of the estimate are chosen data dependent. We present results concerning consistency and the estimates’ rate of convergence.     

An Experimental Evaluation of the Serial Cost Sharing Rule

This paper proposes an experimental test to evaluate the performance of the serial cost sharing rule, originally proposed by Shenker [Sigmetrics, 241–242 (1990)] and then analyzed by Moulin and Shenker [Econometrica 60, 1009–1037 (1992)]. We report measures of the performance and efficiency of the serial mechanism by comparing the choices and payoffs attained by the subjects to the expected equilibrium allocations. Experimental evidence shows that learning is needed for the subjects to converge to the equilibrium strategy. However, in terms of efficiency, the serial mechanism leads to almost efficient allocations.