Weighted simulated integrated conditional moment tests for parametric conditional distributions of stationary time series processes

In this article, we propose a weighted simulated integrated conditional moment (WSICM) test of the validity of parametric specifications of conditional distribution models for stationary time series data, by combining the weighted integrated conditional moment (ICM) test of Bierens (1984 Bierens, H. J. (1984). Model specification testing of time series regressions. Journal of Econometrics 26:323–353.[Crossref], [Web of Science ®] , [Google Scholar]) for time series regression models with the simulated ICM test of Bierens and Wang (2012 Bierens, H. J., Wang, L. (2012). Integrated conditional moment tests for parametric conditional distributions. Econometric Theory 28:328–362.[Crossref], [Web of Science ®] , [Google Scholar]) of conditional distribution models for cross-section data. To the best of our knowledge, no other consistent test for parametric conditional time series distributions has been proposed yet in the literature, despite consistency claims made by some authors.     

Income inequality and participation: A comparison of 24 European countries

Previous research suggests that when there is a high level of inequality, there is a low rate of participation. Two arguments are generally offered: First, inequality depresses participation because people from different status groups have fewer opportunities to share common goals. Second, people may participate more in civic and social life when they have more resources. However, until now, these explanations have not been separated empirically. Using EU-SILC data for 24 European countries, we analyze how income inequality is related to civic and social participation. Our results indicate that the main effects of inequality manifest via resources at the individual and societal level. However, independent of these resources, higher inequality is associated with lower civic participation. Furthermore, inequality magnifies the relationship between income and participation. This finding is in line with the view that inter-individual processes explain why inequality diminishes participation.     

In Search of the Optimum Harvey Wallbanger Recipe via Mixture Experiment Techniques

A Harvey Wallbanger is an alcoholic drink composed of three ingredients: orange juice, vodka, and Galliano. One of the authors (Sahrmann), a connoisseur of the libation, was perplexed upon discovering that different bartender handbooks listed different recipes for the drink. Determined to shed some light on this irksome problem, he issued invitations for an evening workshop session (party) to former and current attendees of an experimental-design training course taught within his company. A mixture experiment was designed and data collected using the class participants. This article describes the experimental design and the analysis of the data. The results of the experiment indicate that reducing the proportion of vodka produces better-flavored drinks. The results of the experiment were not entirely conclusive, however, so recommendations are made for future experimentation.     

Skill and education effects on earnings in 18 Countries: The role of national educational institutions

This study investigates whether the mechanisms why education is rewarded vary across countries. Do educational institutions affect the likelihood that support for a particular mechanism is found? Combining IALS survey data and OECD statistics on educational institutions, it was shown that the effect of measured skill on earnings - controlled for educational attainment - is lower in countries where educational institutions produce skills relevant for work through the vocational system. This indicates that the human capital perspective on education works particularly well in vocationally oriented educational systems, as the skills generated in education are strongly overlapping with the skills that are rewarded. An alternative mechanism sees education as a means for social closure through credentialization. Under the credentialization model, education is not primarily rewarded for the productivity-enhancing skills it entails, but rather for reasons unrelated to productivity. Following this theory education is used for selection into the organization, after which directly observable skills are determining wages. Assuming that a strongly differentiated educational system creates boundaries between social groups, it is hypothesized that strongly differentiated systems lead to stronger measured skill effects. We do not find support for this hypothesis.