A New Model of Trend Inflation

This article introduces a new model of trend inflation. In contrast to many earlier approaches, which allow for trend inflation to evolve according to a random walk, ours is a bounded model which ensures that trend inflation is constrained to lie in an interval. The bounds of this interval can either be fixed or estimated from the data. Our model also allows for a time-varying degree of persistence in the transitory component of inflation. In an empirical exercise with CPI inflation, we find the model to work well, yielding more sensible measures of trend inflation and forecasting better than popular alternatives such as the unobserved components stochastic volatility model. This article has supplementary materials online.     

The Persistence of Outmoded Contraceptive Regimes: The Cases of Mexico and Brazil

Two of the most striking characteristics of contraceptive practice in the world today are the wide variation in patterns of use across countries and the tendency of the distribution of use by method to persist or narrow, even as new methods become available. The argument advanced in this article is that the disposition to commit to a reduced range of methods results from positive feedback in the process of contraceptive choice, and follows the logic of path dependence. The positive feedback derives, in large part, from social interaction among both the providers and the users of contraceptive methods. The persistence of outmoded contraceptive regimes is illustrated with the experience of Mexico and Brazil. In each case, it is argued that the conditions, events, and policies in the early stage of the adoption process have had a determinant bearing on the contraceptive practice prevailing in the late 1990s.     

On the predictive efficiency of the core solution in side-payment games

This paper reports the first cross-study competitive test of thecore solution in side-payment games where the core is nonempty and nonunique (i.e., larger than a single point). The core was tested against five alternative theories including the Shapley value, the disruption nucleolus, the nucleolus, the 2-center, and the equality solution. A generalized Euclidean distance metric which indexes the average distance between an observed payoff vector and the entire set of predicted payoff vectors (Bonacich, 1979) was used as the measure of goodness-of-fit. Analysis of data assembled from six previously reported studies (encompassing a total of 1,464 observations over 56 3-person and 4-person side-payment games) showed the core to predict less accurately than the Shapley value, disruption nucleolus, and nucleolus solutions (p < 0.01). These findings are consistent with previous empirical results that show the core to have a low level of predictive accuracy in side-payment games.This research was supported by grants SOC-7726932 and SES-8015528 from the National Science Foundation. Data analysis was performed at the Madison Academic Computing Center.     

Residential and Racial Mortality Differentials in the South by Cause of Death1

Abstract Mortality levels and differences by metropolitan-nonmetropolitan residence for blacks and whites are examined in the South using life-table techniques. Life tables are constructed for Southern subpopulations using U.S. vital statistics and census data for 1980, and differences in the life expectancies are decomposed by cause of death. Results suggest that life expectancy is higher for metropolitan and white populations. Racial mortality differences are slightly greater in metropolitan areas of the South when compared to the nonmetropolitan South. Residential mortality differences are attributable mainly to differences in the effects of heart disease and accidents. Most of the racial mortality difference is due to differences in effects of malignant neoplasms, cardiovascular disease, perinatal conditions, and homicide. Policy efforts aimed at specific causes of death in specific populations are suggested as a means of reducing racial or residential life expectancy differentials.     

MULTINATIONALS’ PRODUCTIVITY ADVANTAGE: SCALE OR TECHNOLOGY?

This study decomposes the productivity advantage of foreign multinationals into a technology and a scale effect and analyses the causal relationship between foreign ownership and these two components. This is done by analyzing the effects of an acquisition of a domestic establishment by a foreign multinational, using a combined propensity score matching and difference-in-differences estimation. The main results show that any positive impact of acquisition is predominantly due to changes in technical efficiency and not in scale and that the preacquisition productivity of the target plays a role in mediating the rate of technology transfer from the multinational. ( JEL F23, L22)     

Application of life table techniques to measurement of contraceptive effectiveness

Two problems are associated with the analysis of use-effectiveness of contraception. First, couples belonging to a sample of contraceptors typically vary in their monthly chances of contraceptive failure. Second, one does not observe for many, and perhaps a majority of the couples, how long they can remain protected with the contraceptive, because either they are stopping contraception to plan a pregnancy or else observation of them is being interrrupted by lost contact, by discontinuation of contraception for other reasons, or by the end of the study. It is argued that because of these two problems-namely, sample heterogeneity and incomplete histories-the Pearl pregnancy rate, which has been traditionally used to measure contraceptive effectiveness, is inadequate.A life table method is described that permits one to combine incomplete histories with complete ones for purposes of estimating the proportions of the sample that might have remained protected for specified periods if all members had remained under observation for these periods. The versatility of the techniques is illustrated in relation toa retrospective survey. A detailed account of procedure is given. Finally, it is shown that only under specialized conditions that are rarely met in practice is it possible to estimate the results of the new technique from knowledge of Pearl pregnancy rates alone.     

Frequency of Selecting Noise Variables in Subset Regression Analysis: A Simulation Study

This article presents the results of a simulation study of variable selection in a multiple regression context that evaluates the frequency of selecting noise variables and the bias of the adjusted R ² of the selected variables when some of the candidate variables are authentic. It is demonstrated that for most samples a large percentage of the selected variables is noise, particularly when the number of candidate variables is large relative to the number of observations. The adjusted R ² of the selected variables is highly inflated.     

Some Additional Considerations of Protocol Analyses

The Analysis of Verbal Behavior -     

Psychosocial Well‐Being and the Relationship Between Divorce and Children's Academic Achievement

As an unprecedented number of children live in families experiencing divorce, researchers have developed increasingly complex explanations for the consequences associated with marital dissolution. Current accounts focus on changes to family finances, destabilized parenting practices, elevated parental conflict, and deterioration of the parent–child relationship, to explain the impact of divorce. A less studied explanation draws attention to children's diminished psychosocial well‐being following divorce. Using data from the Early Childhood Longitudinal Study—Kindergarten cohort (ECLS‐K) (N = 10,061), I examined the role of psychosocial well‐being in the relationship between divorce and children's outcomes. The results suggest that divorce is associated with diminished psychosocial well‐being in children, and that this decrease helps explain the connection between divorce and lower academic achievement.