Bounded Estimation in the Presence of Nuisance Parameters

The aim of this paper is to extend in a natural fashion the results on the treatment of nuisance parameters from the profile likelihood theory to the field of robust statistics. Similarly to what happens when there are no nuisance parameters, the attempt is to derive a bounded estimating function for a parameter of interest in the presence of nuisance parameters. The proposed method is based on a classical truncation argument of the theory of robustness applied to a generalized profile score function. By means of comparative studies, we show that this robust procedure for inference in the presence of a nuisance parameter can be used successfully in a parametric setting.     

Specialization Versus Diversification in EU Economies: A Challenge for Agro-Food?

Much attention has been paid to industrial differentiation versus specialization. In EU, the phenomenon of secondary production is important enough since it absorbs 6.3% of the total output at basic prices. Through the development of new symmetrical indicators, we point out the ability of economic branches to diversify, penetrate and invade others. This analysis is applied both to EU countries and to economic system branches, focusing the analysis on the challenges facing Agriculture and Food and beverage industry. We can assume that the most advanced countries belong to a post-modern or post-industrial stage of development. The only way to continue to stay on the market is to diversify production and to emphasize the search for a quality/price ratio attractive for the consumer. On the contrary, less advanced countries of Central and Eastern Europe are rather in the initial or intermediate stages of industrialization in which agriculture, crafts and traditional services still have a certain importance and, as we know, undertake more differentiated activities. What emerges is a watershed between continental and Mediterranean countries. Eastern Europe is still anchored to a traditional behavior. In synthesis we find three fundamental trends: (a) a long period continuity of those complementary activities that have always characterized agriculture; (b) the different structure of secondary production in the EU countries; (c) different barriers to entry, that explain asymmetries in the behavior of branches otherwise more or less related. Remark that these barriers may be not only physical or economical but also normative, thus introducing more differences in the behavior of different countries.     

Processes of Institutionalization and Differentiation in the Italian Third Sector

The article describes the recent evolution of the Italian third sector, focusing particularly on its changing role in relation to welfare policies and on its contribution to the development of the provision of social services. In contrast with those considering the emergence and development of the sector solely, or mainly, as a consequence of decisions made by external actors, especially public institutions, the article shows a more complex and dynamic picture. The article demonstrates that the Italian third sector, although at the present time largely engaged in contractual services with the public sector, has maintained a level of autonomy that allows for continuous innovation both within and external to the social service sector. The Italian case supports the need for further debate on the role of the third sector in modern society.     

THE INTERNATIONAL DIMENSION OF PRODUCTIVITY AND DEMAND SHOCKS IN THE US ECONOMY

This paper analyzes the cross‐country effects of productivity and demand disturbances in the United States identified with sign restrictions based on standard theory. Productivity gains in US manufacturing increase US consumption and investment vis‐à‐vis foreign countries, resulting in a trade deficit and higher international prices of US goods, despite the rise in their supply. Financial adjustment works via a higher global value of US equities, real dollar appreciation, and an expansion of US gross foreign liabilities as well as assets. Positive demand shocks to US manufacturing also increase investment and cause a real dollar appreciation, but have limited effects on the trade balance and net foreign assets. Our findings emphasize the importance for macroeconomic interdependence of endogenous fluctuations in aggregate demand across countries in response to business cycle shocks.     

Incomplete Contracts and Complexity Costs

This paper investigates, in a simple risk-sharing framework, the extent to which the incompleteness of contracts could be attributed to the complexity costs associated with the writing and the implementation of contracts. We show that, given any measure of complexity in a very general class, it is possible to find simple contracting problems such that, when complexity costs are explicitly taken into account, the contracting parties optimally choose an incomplete contract which coincides with the default division of surplus. Optimal contracts with complexity costs are constrained efficient in our model. We therefore interpret our results as saying that, in the absence of a strategic role for complexity costs, their effect is entirely determined by their size relative to the size of payoffs.     

Subjective Beliefs and ex ante Trade

We study a definition of subjective beliefs applicable to preferences that allow for the perception of ambiguity, and provide a characterization of such beliefs in terms of market behavior. Using this definition, we derive necessary and sufficient conditions for the efficiency of ex ante trade and show that these conditions follow from the fundamental welfare theorems. When aggregate uncertainty is absent, our results show that full insurance is efficient if and only if agents share some common subjective beliefs. Our results hold for a general class of convex preferences, which contains many functional forms used in applications involving ambiguity and ambiguity aversion. We show how our results can be articulated in the language of these functional forms, confirming results existing in the literature, generating new results, and providing a useful tool for applications.     

Weighted likelihood latent class linear regression

Statistical Methods & Applications - A weighted likelihood approach for robust fitting of a finite mixture of linear regression models is proposed. An EM type algorithm and its variant based on...     

Small area estimation of proportions under a spatial dependent aggregated level random effects model

This paper describes small area estimation (SAE) of proportions under a spatial dependent generalized linear mixed model using aggregated level data. The SAE is also applied to produce reliable district level estimates and mapping of incidence of indebtedness in the State of Uttar Pradesh in India using debt and investment survey data collected by National Sample Survey Office (NSSO) and the secondary data from the Census. The results show a significant improvement in precision of model-based estimates generated by SAE as compared to direct estimates. The estimates generated by incorporating spatial information are more efficient than the one generated by ignoring this information.     

Internationalisation and outsourcing of operations and product development in the fashion industry

This paper investigates the choices in terms of internationalisation and outsourcing of operations and product development activities, as well as collaboration practices used within and across organisations, in different segments of the European fashion industry. Based on multiple, in-depth case studies from Italy, Germany and the UK, the paper shows that fashion companies adopt different configurations of operations and product development, i.e. integrated, collaborative and virtual, ranging from local-integrated models to global-full outsourcing of operations and product development activities. For each configuration, different collaboration practices are in use. Product line positioning and quality, firm size, sales volumes and technical complexity of the products are the key drivers determining the configuration choices and the adoption of certain collaboration practices.