Estimating the stability of census-based racial/ethnic classifications: the case of Brazil

This study presents a method of estimating the degree to which people change their racial/ethnic identity from one census enumeration to another. The technique is applied to the classification of skin colour in Brazil (white, black, brown, yellow). For the period 1950-80, the findings show a deficit of 38 per cent in the black category and a gain of 34 per cent in the brown category, suggesting that a large proportion of individuals who declared themselves black in 1950 reclassified themselves as brown in 1980. Estimates for 1980-90, adjusted for the effects of international migration, reveal a similar pattern, although the magnitude of colour reclassification may have declined somewhat during the 1980s. Procedures to determine the stability of racial/ethnic identity produce data useful to recent policy initiatives that rely on demographic censuses to measure changes in the status of minority groups in less developed countries.     

Changes in the earnings of Arab men in the US between 2000 and 2002

Using public-use microdata samples from the American Community Survey, we find that Middle Eastern Arab men and Afghan, Iranian, and Pakistani men experienced a significant earnings decline relative to non-Hispanic whites between 2000 and 2002. Further analyses based on the Juhn–Murphy–Pierce wage decomposition technique as well as quantile regression indicate that this earnings decline is not explained by changes in the structure of wages or in observable characteristics beyond ethnicity. Our interpretation is that the unanticipated events of September 11th, 2001 negatively affected the labor-market income of the groups most closely associated with the ethnicity of the terrorists.

Livestock in the Household Economy: Cross‐Country Evidence from Microeconomic Data

The development of the livestock sector can contribute to economic growth and poverty reduction, but there is inadequate understanding of livestock‐livelihoods linkages. This article draws on household‐level data from 12 developing countries to investigate the livestock‐asset position of rural households and its contribution to their income. The majority keep livestock; the less well‐off are more likely to keep livestock than the better‐off, but the very poor often lack the resources to invest in small animals. The key policy conclusion is that, contrary to common belief, there are no universal messages about livestock: policy needs to be tailored to farming systems, species, uses of livestock and different wealth groups.     

MANAGING CREDIT BUBBLES

We study a dynamic economy where credit is limited by insufficient collateral and, as a result, investment and output are too low. In this environment, changes in investor sentiment or market expectations can give rise to credit bubbles, that is, expansions in credit that are backed not by expectations of future profits (i.e., fundamental collateral), but instead by expectations of future credit (i.e., bubbly collateral). Credit bubbles raise the availability of credit for entrepreneurs: this is the crowding‐in effect. However, entrepreneurs must also use some of this credit to cancel past credit: this is the crowding‐out effect. There is an “optimal” bubble size that trades off these two effects and maximizes long‐run output and consumption. The equilibrium bubble size depends on investor sentiment, however, and it typically does not coincide with the “optimal” bubble size. This provides a new rationale for macroprudential policy. A credit management agency (CMA) can replicate the “optimal” bubble by taxing credit when the equilibrium bubble is too high and subsidizing credit when the equilibrium bubble is too low. This leaning‐against‐the‐wind policy maximizes output and consumption. Moreover, the same conditions that make this policy desirable guarantee that a CMA has the resources to implement it.     

COMPETITIVE MARKETS WITH ENDOGENOUS HEALTH RISKS

We study an economy where agents' productivity and labor endowment depend on their health status, and indivisible occupational choices affect individual health distributions. We show that Pareto efficiency requires cross‐transfers across occupations. Moreover, workers with relatively less safe jobs must get positive transfers whenever labor supply is not very reactive to wages, a condition in line with the findings of a large empirical literature. In these instances, compensating wage differentials equalizing the utilities of ex‐ante identical workers in different jobs undermine ex‐ante efficiency. Moreover, competitive equilibria where only assets with deterministic payoffs are traded are not first‐best. Finally, we show that simple transfer schemes, implemented through linear subsidies to health insurance, enhance efficiency.     

Automatic specification of piecewise linear additive models: application to forecasting natural gas demand

When facing any forecasting problem not only is accuracy on the predictions sought. Also, useful information about the underlying physics of the process and about the relevance of the forecasting variables is very much appreciated. In this paper, it is presented an automatic specification procedure for models that are based on additivity assumptions and piecewise linear regression. This procedure allows the analyst to gain insight about the problem by examining the automatically selected model, thus easily checking the validity of the forecast. Monte Carlo simulations have been run to ensure that the model selection procedure behaves correctly under weakly dependent data. Moreover, comparison over other well-known methodologies has been done to evaluate its accuracy performance, both in simulated data and in the context of short-term natural gas demand forecasting. Empirical results show that the accuracy of the proposed model is competitive against more complex methods such as neural networks.     

Stigma toward internalizing and externalizing disorders: How do adolescents perceive their peers? A network analysis approach

This study's first aim was to explore whether stigma's facets differ between internalizing and externalizing disorders in adolescence. The second aim was to compare the relationships among stigma's facets toward these disorders. Two vignettes depicting a peer with Major Depressive Disorder (MDD) or Attention-Deficit Hyperactivity Disorder (ADHD) were used with 616 adolescents in Italy. A Repeated measure MANOVA showed biogenetic causes, social distancing, and discomfort were more attributed to depression, while dangerousness to ADHD. Furthermore, a Psychometric Network Analysis showed no differences between these disorders in the relations among stigma's components. However, dangerousness seemed to be among the nodes with the highest levels of “strength,” confirming previous literature that shows that dangerousness plays a major role in stigma.