Bootstrap methods for single structural change tests: power versus corrected size and empirical illustration

This paper assesses the performance of tests for a single structural change at unknown date when regressors are stationary, trending and when they have a break in mean. Size and power of the test procedures are compared in a simulation setup particularly aimed at autoregressive models using their limiting distribution and some bootstrap approximations. The comparisons are performed using graphical methods, namely P value discrepancy plots and size–power curves. The simulation study gives some interesting insights to the test procedures. Indeed, it documents that tests based on the conventional asymptotic distribution are oversized in small samples. The size correction is achieved by some bootstrap methods which appear to possess reasonable size properties. For the power study, the proposed bootstrap method improves on the asymptotic approximations of some tests for heteroskedastic regression errors especially when there is a mean-shift in the regressors. This result has not been found for the case of i.i.d. errors where the bootstrap tests have the same power properties as the tests based on the asymptotic approximations. We finally study the relationship between two monthly US interest rates. The results show that such relationship has been altered by a regime-shift located in May 1981.     

Price bias and common practice in option pricing

Generally, the semiclosed-form option pricing formula for complex financial models depends on unobservable factors such as stochastic volatility and jump intensity. A popular practice is to use an estimate of these latent factors to compute the option price. However, in many situations this plug-and-play approximation does not yield the appropriate price. This article examines this bias and quantifies its impacts. We decompose the bias into terms that are related to the bias on the unobservable factors and to the precision of their point estimators. The approximated price is found to be highly biased when only the history of the stock price is used to recover the latent states. This bias is corrected when option prices are added to the sample used to recover the states' best estimate. We also show numerically that such a bias is propagated on calibrated parameters, leading to erroneous values. The Canadian Journal of Statistics 48: 8–35; 2020 © 2019 Statistical Society of Canada     

Internalized Other Interviewing in Relational Therapy: Three Discursive Approaches to Understanding its Use and Outcomes

For over 20 years, family therapist Karl Tomm has been engaging families and couples with a therapeutic intervention he calls Internalized Other Interviewing (IOI). The IOI (cf. Emmerson‐Whyte, 2010; Hurley, 2006) entails interviewing clients, from the personal experiences of partners and family members as an internalized other. The IOI is based on the idea that through dialogues over time, one can internalize a sense of one's conversational partner responsiveness in reliably anticipated ways. Anyone who has thought in a conversation with a family member or partner, “Oh there s/he goes again,” or anticipates next words before they leave the other's mouth, has a sense of what we are calling an internalized other. For Tomm, the internalized anticipations partners and family members may have offers entry points into new dialogues with therapeutic potential—particularly, when their actual dialogues get stuck in dispreferred patterns.     

Comparing two types of navigational interfaces for Virtual Reality

Previous studies suggest significant differences between navigating virtual environments in a life-like walking manner (i.e., using treadmills or walk-in-place techniques) and virtual navigation (i.e., flying while really standing). The latter option, which usually involves hand-centric devices (e.g., joysticks), is the most common in Virtual Reality-based studies, mostly due to low costs, less space and technology demands. However, recently, new interaction devices, originally conceived for videogames have become available offering interesting potentialities for research. This study aimed to explore the potentialities of the Nintendo Wii Balance Board as a navigation interface in a Virtual Environment presented in an immersive Virtual Reality system. Comparing participants' performance while engaged in a simulated emergency egress allows determining the adequacy of such alternative navigation interface on the basis of empirical results. Forty university students participated in this study. Results show that participants were more efficient when performing navigation tasks using the Joystick than with the Balance Board. However there were no significantly differences in the behavioral compliance with exit signs. Therefore, this study suggests that, at least for tasks similar to the studied, the Balance Board have good potentiality to be used as a navigation interface for Virtual Reality systems.     

Dirty money? The politics of representation in Cuban revolutionary banknotes

This article examines the visual politics of Cuban postrevolutionary banknotes, focusing on the series minted in 1961. It is argued that the iconography of this series – which stresses the revolutionary merits of Fidel Castro and his movement, and associates the latter with the independence wars – portrays the Castro-led Cuban Revolution as the fulfilment of the nation’s aspiration to sovereignty. The article maintains that the design of the 1961 banknote series articulates tropes that convey a fidelista imaginary, presenting the visual rhetoric of currencies as a mechanism of propaganda and persuasion.     

Entry into Consensual Unions and Marriages Among Finnish Women Born Between 1938 and 1967

This study, based on a survey undertaken in 1989, clearly illustrates the dramatic changes in family formation behaviour that have occurred in Finland. Whereas only about one-tenth of the first unions of women born between 1938 and 1942 began as consensual unions, after the cohort of 1962 only one-tenth were formal marriages. These changes lagged some ten years behind the corresponding ones in Sweden, but were about five years ahead of Norway. In Finland, up to the present, most consensual unions have constituted a temporary state which precedes proper family life. Most couples married in connection with the birth of the first child. Consensual union as a permanent lifestyle is generally connected with a low level of education of women.     

“Unnatural Fornication” Cases Under State-Socialism: A Hungarian–Slovenian Comparative Social-Historical Approach

This comparative social-historical study examines different versions of state-socialist body politics manifested in Hungary and Slovenia mainly during the 1950s by using archive material of “unnatural fornication” court cases. By analyzing the available Hungarian “természet elleni fajtalanság” and Slovenian “nenaravno ob?evanje” court cases, we can shed light on how the defendants were treated by the police and the judiciary. On the basis of these archive data that have never been examined before from these angles, we can construct an at least partial picture of the practices and consequences of state surveillance of same-sex-attracted men during state-socialism. The article explores the functioning of state-socialist social control mechanisms directed at nonnormative sexualities that had long-lasting consequences on the social representation of homosexuality in both countries.     

OECD: One or Many? Ranking Countries with a Composite Well-Being Indicator

In the social sciences it is hardly contested that “institutions matter”. Consequently the analysis of differences and similarities of institutions should be a routine task. Prevailing methods to the measurement of institutions are however problematic, in particular when they have to deal with different levels of measurement. To overcome this, in this paper we present an innovative method to the quantification of qualitative institutional data. We do this by, first, developing benchmarks for comparison based on Weberian ideal types. Then we identify and operationalise the dimensions and indicators to a nuanced measurement of institutions, after which we apply a careful and differentiated scoring, weighting and aggregation procedure in order to guarantee the highest standards of comparability, transparency and reliability of the method. Finally, we demonstrate our method by applying it to the analysis of institutional individualisation in European welfare institutions.     

Use of Poset Theory with Big Datasets: A New Proposal Applied to the Analysis of Life Satisfaction in Italy

The aim of this work is to propose a tool for measuring a complex concept, and to apply it to big sets of data measured on ordinal and/or dichotomous scales. An important field of application are subjective data, that are often based on opinions or personal evaluations. Many national and international surveys employ this kind of data, measured among thousand of individuals. Thanks to the use of the “average rank” as a synthetic measure of a complex concept, we believe that poset theory could be a very useful approach for dealing with ordinal data avoiding the use of scaling procedures. Because classic poset approaches are at their best when applied to few data at a time, our idea is based on a procedure for sampling units from a big population using a simple criterion to summarize the resulting values appropriately. Applying the central limit theorem enables a comparison of the results obtained from different groups using statistical tests on the means. We used our Height of Groups by Sampling (HOGS) method to compare the average rank among groups that are defined by one or more socio-demographic variables influencing the level of the complex concept we wish to measure. The application of the HOGS procedure to life satisfaction in Italy generated convincing results, revealing significant differences between regions, genders and levels of formal education. We compared the results given by HOGS with the non linear principal component analysis and obtain an easy readable output with convincing precision and accuracy; we are confident that the HOGS procedure can be applied to many other concepts investigated in the social sciences.