A note on influence diagnostics in AR(1) time series models

The purpose of this paper is to develop influence diagnostics for AR(1) models under the innovative and the data perturbation schemes. There are four main contributions. First, we derive analytical expressions for the slope and curvature statistics. Second, we establish a relationship between the slope and curvature showing that the standardised slope and standardised curvature are equal for the innovative perturbation scheme, and these vectors are nearly identical for several values of the autoregressive parameter, for the data perturbation scheme. Third, we present a connection between the influence statistics and the tests for outlier detection. Fourth, for the innovative perturbation scheme, we derive the asymptotic distribution of a new influence statistic, whereas for the data perturbation scheme, the distribution of the influence statistics is obtained via Monte Carlo simulation. We additionally discuss practical guidelines for the use of local influence statistics, which are illustrated on a chemical process data set.     

THE LENDER OF LAST RESORT: A TWENTY‐FIRST CENTURY APPROACH

The classical Bagehot conception of a Lender of Last Resort (LOLR) that lends to illiquid banks has been criticized on two grounds: On the one hand, the distinction between insolvency and illiquidity is not clear‐cut; on the other, a fully collateralized repo market allows central banks to provide the adequate aggregate amount of liquidity and leave to the banks the responsibility of lending uncollateralized. The object of this paper is to analyze these issues rigorously by providing a framework in which liquidity shocks cannot be distinguished from solvency ones and then asking whether there is a need for a LOLR and how it should operate in the absence of systemic threats. Determining the optimal LOLR policy requires a careful modeling of the structure of the interbank market and of the closure policy. In our setup, the results depend upon the existence of moral hazard. If the main source of moral hazard is the banks' lack of incentives to screen loans, then the LOLR may have to intervene to improve the efficiency of an unsecured interbank market in crisis periods; if instead the main source of moral hazard is loan monitoring, then the interbank market should be secured and the LOLR should never intervene. (JEL: E58, 628)     

Why are manufacturing SMEs cancelling their ISO 9001 certification? Research from Italy

We investigated why Italian manufacturing small and medium-sized enterprise (SMEs) cancelled ISO 9001 certification from the Italian database and the problems and difficulties that led to this. Eight such problems derived from a literature review and interviews with a Delphi panel of 20 experts were tested through an online questionnaire. The questionnaire was completed by 167 managers from Italian SMEs that have cancelled their ISO 9001 certification. Costs related to consultancy and certification body are no longer a difficulty for maintaining ISO 9001 and neither are misinterpretations with the external auditors or paperwork. Internal audits are considered a problem when they are not managed with the aim of measuring performances. Staff can represent a cost when just dedicated to administrative and bureaucratic activities. The more relevant difficulties were top management commitment, measurability of performances and customers’ current lack of interest in ISO 9001. Respondents’ comments also provided interesting suggestions for practitioners such as quality managers and quality consultants to avoid mistakes while maintaining ISO 9001 certification.     

‘The whole is always smaller than its parts’ – a digital test of Gabriel Tardes' monads

In this paper we argue that the new availability of digital data sets allows one to revisit Gabriel Tarde's (1843–1904) social theory that entirely dispensed with using notions such as individual or society. Our argument is that when it was impossible, cumbersome or simply slow to assemble and to navigate through the masses of information on particular items, it made sense to treat data about social connections by defining two levels: one for the element, the other for the aggregates. But once we have the experience of following individuals through their connections (which is often the case with profiles) it might be more rewarding to begin navigating datasets without making the distinction between the level of individual component and that of aggregated structure. It becomes possible to give some credibility to Tarde's strange notion of ‘monads’. We claim that it is just this sort of navigational practice that is now made possible by digitally available databases and that such a practice could modify social theory if we could visualize this new type of exploration in a coherent way.     

The Differentiation of Social Demands in Europe. The Social Basis of the European Models of Capitalism

This paper tests the impact of various determinants of the preference for two key elements of the European social models: redistribution and trade unions, using individual data from the first round of the European Social Survey. The basic hypothesis is that the main determinant of an individual’s support for these elements of the European models is the social position of the individual in terms of income, status and risks attached to their labour market insertion. The paper also considers the relative importance of less ‘materialist’ influences such as religion or other cultural determinants. The estimations show that ‘materialist’ determinants are by far the most important influences on individual preferences, contrary to what most social theories of modernisation contend.

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A Note on the Dimensionality of Quality of Life Scales: An Illustration with the Satisfaction with Life Scale (SWLS)

A case is made that measures used in quality of life and happiness research will be essentially unidimensional: inherently tapping minor dimensions. This is illustrated using Diener’s Satisfaction with Life Scale (SWLS). It is shown that the SWLS does not meet the standard of strict unidimensionality, but that the interpretation of the total scale score is not compromised because the additional dimensions are relatively minor. In the context of the example, a multi-step strategy is described that allows researchers to test for essential unidimensionality. Throughout the article, essential unidimensionality is contrasted with the received view of strict unidimensionality and confirmatory factor analysis methods.

Usability of car stereo

Automotive sound systems vary widely in terms of functions and way of use between different brands and models what can bring difficulties and lack of consistency to the user. This study aimed to analyze the usability of car stereo commonly found in the market. Four products were analyzed by task analysis and after use reports and the results indicate serious usability issues with respect to the form of operation, organization, clarity and quality of information, visibility and readability, among others.