WHY DO EMERGING ECONOMIES BORROW SHORT TERM?

We argue that one reason why emerging economies borrow short term is that it is cheaper than borrowing long term. This is especially the case during crises, as during these episodes the relative cost of long‐term borrowing increases. We construct a unique database of sovereign bond prices, returns, and issuances at different maturities for 11 emerging economies from 1990 to 2009 and present a set of new stylized facts. On average, these countries pay a higher risk premium on long‐term than on short‐term bonds. During crises, the difference between the two risk premia increases and issuance shifts towards shorter maturities. To illustrate our argument, we present a simple model in which the maturity structure is the outcome of a risk‐sharing problem between an emerging economy subject to rollover crises and risk‐averse international investors.     

Gender Differences in Criminal Sentencing: Do Effects Vary Across Violent,Property, and Drug Offenses?*

Objective. Many studies find that females benefit from their gender in sentencing decisions. Few researchers, however, address whether the gender‐sentencing association might be stronger for some crimes, such as minor nonviolent offending, and weaker for other offenses, such as serious violent crime. Method. Using a large random sample of convicted offenders in Texas drawn from a statewide project on sentencing practices mandated by the 73rd Texas Legislature, logistic regression and OLS regression analyses of likelihood of imprisonment and prison length illustrate the importance of looking at sentencing outcomes not only in terms of gender but also in terms of crime type. Results. Specifically, we find that the effect of gender on sentencing does vary by crime type, but not in a consistent or predicted fashion. For both property and drug offending, females are less likely to be sentenced to prison and also receive shorter sentences if they are sentenced to prison. For violent offending, however, females are no less likely than males to receive prison time, but for those who do, females receive substantially shorter sentences than males. Conclusions. We conclude that such variation in the gender‐sentencing association across crime type is largely due to features of Texas' legal code that channel the level of discretion available to judges depending on crime type and whether incarceration likelihood or sentence length is examined.     

Price Setting With Menu Cost for Multiproduct Firms

We model the decisions of a multiproduct firm that faces a fixed “menu” cost: once it is paid, the firm can adjust the price of all its products. We characterize analytically the steady state firm's decisions in terms of the structural parameters: the variability of the flexible prices, the curvature of the profit function, the size of the menu cost, and the number of products sold. We provide expressions for the steady state frequency of adjustment, the hazard rate of price adjustments, and the size distribution of price changes, all in terms of the structural parameters. We study analytically the impulse response of aggregate prices and output to a monetary shock. The size of the output response and its duration both increase with the number of products; they more than double as the number of products goes from 1 to 10, quickly converging to the response of Taylor's staggered price model.     

Social Capital,Diversity and Giving or Receiving Help Among Neighbours

In this paper we look at the links between social capital and helping neighbours or receiving help from neighbours. Our data are drawn from the 2003 and 2008 Canadian General Social Surveys, both of which looked at linkages across social networks. In particular, we examine the relationship between municipal, neighbourhood and individual level ethnicity social capital formation and the level of helping amongst neighbours. Using a combination of factor analysis and random intercept model regressions, we find a strong link between social capital formation and helping, but do not find strong links between diversity, social capital and helping. This suggests that previous research, which found strong links between diversity and social capital, may be overstated.     

Vacant Industrial Buildings in Portugal: A Case Study from Four Municipalities

Vacant and abandoned industrial buildings are a symptom of urban decline linked to various problems. To adopt effective regenerating policies, a full understanding of vacancy is required. This paper presents a study where the extent and condition of the vacant industrial buildings located in four Portuguese municipalities were assessed. Results showed that 613 buildings located in urban areas and in industrial parks, occupying an area of 1.4 million square meters, were vacant. The research is helpful for adopting regenerative policies and for understanding general questions of the characteristics of industrial vacancy and policies that are used to address this problem.     

Importation,SES-selective acculturation,and the weaker SES-health gradients of Mexican immigrants in the United States

Previous studies find U.S. immigrants have weaker socioeconomic gradients in health relative to non-Hispanic Whites and their U.S.-born co-ethnics. Several explanations have been advanced but few have been tested empirically. We use data from the Mexican Family Life Survey and the U.S. National Health Interview Survey, including longitudinal data in the former measuring socioeconomic status (SES) and health previous to emigration, to test if (1) immigrants “import” their gradients from the sending country, or if (2) they may be changing as a result of SES-graded acculturation among Mexican migrant men in two health indicators: obesity and current smoking. We find evidence consistent with the first hypothesis: the gradients of migrants measured prior to coming to the U.S. are not statistically different from those of nonmigrants, as the gradients of each are relatively weak. Although the gradients for obesity and smoking appear to weaken with time spent in the U.S., the differences are not significant, suggesting little support for the selective acculturation hypothesis.     

A Note on the Prior Distributions of Weibull Parameters for the Reliability Function

In Bayesian Inference it is often desirable to have a posterior density reflecting mainly the information from sample data. To achieve this purpose it is important to employ prior densities which add little information to the sample. We have in the literature many such prior densities, for example, Jeffreys (1967 Jeffreys , H. ( 1967 ). Theory of Probability , 3rd rev. ed. . London : Oxford University Press . [Google Scholar]), Lindley (1956 Lindley , D. V. ( 1956 ). On a measure of the information provided by an experiment . Ann. Mathemat. Statist. 27 : 986 – 1005 .[Crossref] , [Google Scholar]); (1961 Lindley , D. V. ( 1961 ). The use of prior probability distributions in statistical inference and decisions . In: Neyman , J. , ed. Proceedings of the Fourth Berkeley Symposium on Mathematical Statistics and Probability . Vol. 1. Berkeley : University of California Press , pp. 453 – 468 . [Google Scholar]), Hartigan (1964 Hartigan , J. ( 1964 ). Invariant priors distributions . Ann. Mathemat. Statist. 35 : 836 – 845 .[Crossref] , [Google Scholar]), Bernardo (1979 Bernardo , J. M. ( 1979 ). Reference posterior distributions for Bayesian inference . J. Roy. Statist. Soc. 41 ( 2 ): 113 – 147 . [Google Scholar]), Zellner (1984 Zellner , A. ( 1984 ). Maximal Data Information Prior Distributions, Basic Issues in Econometrics . Chicago : University of Chicago Press . [Google Scholar]), Tibshirani (1989 Tibshirani , R. ( 1989 ). Noninformative priors for one parameters of many . Biometrika 76 : 604 – 608 .[Crossref], [Web of Science ®] , [Google Scholar]), etc. In the present article, we compare the posterior densities of the reliability function by using Jeffreys, the maximal data information (Zellner, 1984 Zellner , A. ( 1984 ). Maximal Data Information Prior Distributions, Basic Issues in Econometrics . Chicago : University of Chicago Press . [Google Scholar]), Tibshirani's, and reference priors for the reliability function R(t) in a Weibull distribution.     

Multivariate Three-Parameter Log-Elliptical Distributions

The three-parameter log-elliptical distribution class is developed for the general situation in which the hypothesis of independence for the elements in a sample is not assumed. The parameter estimators are theoretically showed to be invariant under all distributions in the class by considering only a change in the constant of the scale parameter estimator. An estimation procedure based on the three-parameter lognormal distribution is proposed for the parameter estimation problem in any three-parameter log-elliptical distribution. Two classical lognormal data sets are analyzed without assuming independence in the sample in order to illustrate the proposed estimation procedure.