Consumer boycott, household heterogeneity, and child labor

Consumer boycott campaigns against goods that are produced using child labor are becoming increasingly popular. Yet there is still no consensus on which are the effects of such type of activism on child labor in developing countries. In fact, if some agreement is to be found in the recent economic literature, it is that the boycott does not reduce child labor. We contribute to this discussion presenting a simple model which shows that there are conditions under which a consumer boycott reduces child labor. We consider a small country two-factor economy populated by heterogeneous households. The boycott affects both the adult and the child labor markets. We show that the effects are heterogeneous and depend on household characteristics and on the income distribution. We derive the conditions under which the consumer boycott reduces child labor not only for nonpoor households but also for some of the households whose’ income is—before the boycott—under the subsistence level.     

On the validity of the indeterminate latent variables in the lisrel model

The language of abstract vector spaces is used to show that the latent variables and errors of the Lisrel model can always be constructed so as to predict any criterion perfectly,including all those that are entirely uncorrelated with the observed variables.     

On the ratio of generalized variances

This paper examines the ratio of the determinants of two independent central Wishart matrices. The ratio is represented as a product of independent beta type-2 random variables and then the exact density is evaluated for the general case. Different representations and particular cases are also discussed.     

Formative Indicators and Effects of a Causal Model for Household Human Capital with Application

Dagum and Slottje (2000 Dagum , C. , Slottje , D. J. ( 2000 ). A new method to estimate the level and distribution of the household human capital with applications . Journal of Structural Change and Economic Dynamics 11 : 67 – 94 .[Crossref] , [Google Scholar]) estimated household human capital (HC) as a latent variable (LV) and proposed its monetary estimation by means of an actuarial approach. This paper introduces an improved method for the estimation of household HC as an LV by means of formative and reflective indicators in agreement with the accepted economic definition of HC. The monetary value of HC is used in a recursive causal model to obtain short- and long-term multipliers that measure the direct and total effects of the variables that determine household HC. The new method is applied to estimate US household HC for year 2004.     

Learning the Wealth of Nations

We study the evolution of market‐oriented policies over time and across countries. We consider a model in which own and neighbors' past experiences influence policy choices through their effect on policymakers' beliefs. We estimate the model using a large panel of countries and find that it fits a large fraction of the policy choices observed in the postwar data, including the slow adoption of liberal policies. Our model also predicts that there would be reversals to state intervention if nowadays the world was hit by a shock of the size of the Great Depression.     

Asymptotic Inference for Performance Fees and the Predictability of Asset Returns

In this article, we provide analytical, simulation, and empirical evidence on a test of equal economic value from competing predictive models of asset returns. We define economic value using the concept of a performance fee—the amount an investor would be willing to pay to have access to an alternative predictive model used to make investment decisions. We establish that this fee can be asymptotically normal under modest assumptions. Monte Carlo evidence shows that our test can be accurately sized in reasonably large samples. We apply the proposed test to predictions of the U.S. equity premium.     

Do media play a role in promoting vocational education and training? The case of MasterChef

It is often suggested that vocational education and training (VET) could be key to cut youth unemployment. VET programmes may provide young people with specific professional qualifications that enable them to successfully compete in the labour market. However, despite the great emphasis placed by governments and other institutions on these programmes, VET appears to be far from reaching its full potential in many countries. One barrier preventing students from pursuing this type of education is the stigma associated with VET. This paper looks at the role of media in changing the negative social perceptions of VET. Specifically, it examines whether in Italy the growing popularity of the cooking television reality show MasterChef has led to an increase in the number of students willing to study for a vocational qualification in hospitality and catering. The empirical results show that an increase in the number of MasterChef's viewers is associated with a higher proportion of students willing to attend hospitality and catering schools. This finding suggests that popular television cooking series like MasterChef may be a vehicle through which the image and the attractiveness of VET can be improved.