PRODUCER AND CONSUMER RESPONSES TO GREEN HOUSING LABELS

We find “green” labels increase residential property values by an average of 5%. This premium varies by label stringency and across market segments. Builders respond to the stringency of labels by strategically incorporating green features to achieve higher ratings. This strategy seems reasonable as there is no market premium for green features that lead to scores between label rating cutoff values. These results raise important questions as to how green label policies should be designed in order to foster the supply of green features. Gradations of green attributes are influential, particularly for highly rated homes. The most stringent labels have the greatest role at the high price end of the market. (JEL Q20, Q40, R31)     

The intergenerational education spillovers of pension reform in China

Economic theory establishes that pension privatization weakens the link between old and young and so reduces the incentive to invest in public education in an economy with lower return rate of capital than growth rate of wage. However, empirical studies of the link change are few. In this paper, we investigate the effects of pension privatization and the central government’s subsidy to individual accounts on public education spending in a three-period overlapping generation model. And then, we take contemporary pension reforms in a number of Chinese provinces as offering natural experiment conditions. Using a difference-in-difference framework and 282 municipal districts panel data over years 1998–2009, we test the pension-education theoretical link change. Both our theoretical and empirical results confirm that pension privatization is adversely associated with local public spending on education in China. Private pension subsidies, moreover, magnify this effect. Our study supports the theoretical assertion and selective empirical findings of a negative intergenerational effect of pension privatization.     

A majorization comparison of apportionment methods in proportional representation

From the inception of the proportional representation movement it has been an issue whether larger parties are favored at the expense of smaller parties in one apportionment of seats as compared to another apportionment. A number of methods have been proposed and are used in countries with a proportional representation system. These apportionment methods exhibit a regularity of order, as discussed in the present paper, that captures the preferential treatment of larger versus smaller parties. This order, namely majorization, permits the comparison of seat allocations in two apportionments. For divisor methods, we show that one method is majorized by another method if and only if their signpost ratios are increasing. This criterion is satisfied for the divisor methods with power-mean rounding, and for the divisor methods with stationary rounding. Majorization places the five traditional apportionment methods in the order as they are known to favor larger parties over smaller parties: Adams, Dean, Hill, Webster, and Jefferson. Received: 5 August 2000/Accepted: 24 October 2001     

Measures of Multigroup Segregation

In this paper we derive and evaluate measures of multigroup segregation. After describing four ways to conceptualize the measurement of multigroup segregation—as the disproportionality in group (e.g., race) proportions across organizational units (e.g., schools or census tracts), as the strength of association between nominal variables indexing group and organizational unit membership, as the ratio of between–unit diversity to total diversity, and as the weighted average of two–group segregation indices—we derive six multigroup segregation indices: a dissimilarity index (D), a Gini index (G), an information theory index (H), a squared coefficient of variation index (C), a relative diversity index (R), and a normalized exposure index (P). We evaluate these six indices against a set of seven desirable properties of segregation indices. We conclude that the information theory index H is the most conceptually and mathematically satisfactory index, since it alone obeys the principle of transfers in the multigroup case. Moreover, H is the only multigroup index that can be decomposed into a sum of between– and within–group components.     

Territorial Modernity and Public Space: Lessons from the Politics of Water Conflict Along the US/Canadian Border

Conflict over water resources is a major problem throughout the world. This essay describes the long-standing and often successful effort to insulate decisions on how to allot water among contending users, and how to reduce water pollution along a 5000-mile international border. The effort has been fraught with political and scientific complexity. Yet, after more than 90 years of experience, it provides a model that other nations are beginning to examine as relevant to their own efforts to find solutions.     

On the run length of a Shewhart chart for correlated data

We consider an extension of the classical Shewhart control chart to correlated data which was introduced by Vasilopoulos/Stamboulis (1978). Inequalities for the moments of the run length are given under weak conditions. It is proved analytically that the average run length (ARL) in the in-control state of the correlated process is larger than that in the case of independent variables. The exact ARL is calculated for exchangeable normal variables and autoregressive processes (AR). Moreover, we compare this chart with residual charts. Especially, in the case of an AR(1)—process with positive coefficient, it turns out that the out-of-control ARL of the modified Shewhart chart is smaller than that of the Shewhart chart for the residuals.     

Worlds come apart: Systems theory versus critical theory. Drama in the history of sociology in the twentieth century

This article places an episode in the history of sociological theory into intellectual history in the twentieth century. The perspective is chronological as well as contextual. The themes are two theoretical approaches, both embedded in both American and German history, Parsonian Systems Theory and “Frankfurt School” Critical Theory. The chronology shown spanned mainly from the 1940s to the 1960s. The context of the two theories is a period that is crucial in twentieth century history. The protagonists of the two approaches were, in the 1940s, Americans and Germans exiled in the United States. In the 1950s, both approaches were affected by McCarthyism in different ways. The 1960s, however, were the culmination. The dynamics of the two approaches led into a schism which came into the open on the occasion of the 1964 German Sociology Conference in Heidelberg celebrating Max Weber. The article shows the stages in the evolution of the schism, emulating three acts in a drama. The final split was over whether Weber or Marx should be the classic whose oeuvre was to influence sociological thinking today. My aim is to exemplify how these two authoritative approaches in sociological theory, far from escaping the vagaries and vicissitudes of their times, were embedded in twentieth-century history.     

Partial strikes under the railway labor act: The need for a doctrine of unprotected concerted activity

In light of use by airline unions of partial-strike tactics, such as concerted refusals to bid for overtime work and so-called ” CHAOS” tactics involving unannounced refusals to fly after passengers have been ticketed and are ready to board, the authors examine whether the Railway Labor Act (RLA) should be interpreted to permit employers to discipline employees for engaging in such tactics, or whether these are a protected form of economic pressure. Although in many respects bargaining duties and economic weapons under the RLA are read consonant with precedents under the National Labor Relations Act (NLRA) (which governs all industries other than rail and air transport), there are a few decisions suggesting that during the period when self-help may be resorted to, employees can engage in partial strike activities as long as they violate no court order but are subject to permanent replacement in limited circumstances. These decisions, the authors submit, fail to take account of Supreme Court decsions since the 1930s that some economic pressures by unions, such as slowdowns and sitins, may not violate the labor laws but nor are they protected by those laws so as to immunize partial strikers from employer discipline. These decisions are not based on unique features of the NLRA. Rather, they give recognition to the background assumptions of Congress that employers may act to protect their property interests as long as they do not run afoul of NLRA or RLA protections and that employees who engage in partial-strike activities are subject to employer discipline even where not strictly necessary to maintain operations. Moreover, these tactics skew the bargaining process by giving employees an essentially risk-free gambit to pressure their economic position through planned disruption of carrier operations. Professor Estreicher is also labor and employment counsel to O’Melveny & Myers, LLP. The views expressed herein are the authors’ and should not be attributed to any organization. Hannah Breshin and Tom Jerman of O’Melveny & Myers, assisted the authors with this article. We also thank Professor Herbert Northrup for his helpful comments.