DETERMINING THE APPROPRIATE DISCOUNT RATES IN PURE CAPITAL RATIONING

This paper proposes an interpretation of the pure capital rationing problem as it is faced by many managers in decentralized firms in which budgets serve as the principal means of control. It is argued that the appropriate objective for situations such as these is the maximization of either undiscounted earnings over the planning horizon or total value of the investments at the horizon. When either objective function is used in conjunction with the frequently encountered linear programming models for the capital rationing problem, shadow prices result which give rise to discount rates that will reproduce the optimal solution using discounted cash flow as a criterion. These results are then used as a means for clarifying several confusing and misleading statements that have appeared in the literature.     

Tables of the exact quantiles of the top-down correlation coefficient for n - 3(1)14

Iman and Connver (1985, 1987) have suggested the top-down correlation coefficient as a measure of association when n objects are ranked by two or more independent sources and interest centers primarily on agreement in the top rankings, with disagreements on items at the bottom of the rankings being of little or no importance. The top-down correlation coefficient results from computing the ordinary Pearson correlation coefficient on Savage scores. Quantiles of the exact distribution of the top-down correlation coefficient based on the assumption of independent rankings are provided for n = 3(1)14.     

Incorporating quality into data envelopment analysis of nursing home performance: A case study

When using data envelopment analysis (DEA) as a benchmarking technique for nursing homes, it is essential to include measures of the quality of care. We survey applications where quality has been incorporated into DEA models and consider the concerns that arise when the results show that quality measures have been effectively ignored. Three modeling techniques are identified that address these concerns. Each of these techniques requires some input from management as to the proper emphasis to be placed on the quality aspect of performance. We report the results of a case study in which we apply these techniques to a DEA model of nursing home performance. We examine in depth not only the resulting efficiency scores, but also the benchmark sets and the weights given to the input and output measures. We find that two of the techniques are effective in insuring that DEA results discriminate between high and low quality performance.     

On the Specification of Propensity Scores,With Applications to the Analysis of Trade Policies

A vector autoregression is fit to recent U.S. data on wheat prices, wheat export sales, wheat export shipments, and exchange rates. Forecast error decompositions and out-of-sample forecasts indicate that exchange rates have little influence on wheat sales and shipments.     

STATUS CHANGE AND PERSISTENCE IN CHICAGO SUBURBS: MULTIPLE PATTERNS OF CAUSATION*

An examination of 1970–1980 census data for suburban Chicago indicates that, within the context of persisting inequities, causal links between community characteristics and status change vary by initial status. Individual change in the relative rankings of initially affluent communities is a direct function of housing age and location; residential development and changes in population size have little or no effect on this process. In contrast, cyclical growth is the primary determinant of status change among places of lesser initial affluence. Within the larger context of centrifugal drift and age-related growth cycles, stronger growth and resulting status improvements occur in accessible, underdeveloped newer places that, due to recent suburbanization, have already attained somewhat higher rankings.     

Earnings,relative income,and family formation

The probability of first marriage for men who graduated from Wisconsin high schools in 1957 was analyzed with respect to their Social Security earnings records, Wisconsin income tax reports for parents, and other variables. The findings provide no support for Easterlin's hypothesis that marriage will occur earlier when young men judge their economic prospects favorably with respect to their parents' income. However, young men's earnings and time spent in schooling to increase them were found to be important influences on marriage timing. Additional schooling had little effect net of the time it absorbed.     

Exploring the prevalence and correlates of methamphetamine use: findings from Sacramento's ADAM program

Anecdotal reports have suggested that the use and abuse of methamphetamine is increasing in the United States. To date, however, few scholarly works have explored the prevalence and correlates of methamphetamine use in the United States. To address this limitation, a secondary analysis was undertaken with data collected through the Arrestee Drug Abuse Monitoring (ADAM) Program. An examination of methamphetamine-positive rates among ADAM arrestees interviewed between 1991 and 2001 identified that its use is concentrated within the Western part of the United States. Supplementary analyses of Sacramento arrestees indicated that 71% were diagnosed as needing some form of alcohol or other drug treatment. Compared to those arrestees who were detected methamphetamine-negative, methamphetamine-positive arrestees in Sacramento were three times as likely to be white and to have been diagnosed in need of drug treatment. Implications for drug control policy are discussed.