Consumption Commitments and Habit Formation

We analyze the implications of household‐level adjustment costs for the dynamics of aggregate consumption. We show that an economy in which agents have “consumption commitments” is approximately equivalent to a habit formation model in which the habit stock is a weighted average of past consumption if idiosyncratic risk is large relative to aggregate risk. Consumption commitments can thus explain the empirical regularity that consumption is excessively sensitive and excessively smooth, findings that are typically attributed to habit formation. Unlike habit formation and other theories, but consistent with empirical evidence, the consumption commitments model also predicts that excess sensitivity and smoothness vanish for large shocks. These results suggest that behavior previously attributed to habit formation may be better explained by adjustment costs. We develop additional testable predictions to further distinguish the commitment and habit models and show that the two models have different welfare implications.     

An Empirical Process View of Inverse Regression

A common approach taken in high‐dimensional regression analysis is sliced inverse regression, which separates the range of the response variable into non‐overlapping regions, called ‘slices’. Asymptotic results are usually shown assuming that the slices are fixed, while in practice, estimators are computed with random slices containing the same number of observations. Based on empirical process theory, we present a unified theoretical framework to study these techniques, and revisit popular inverse regression estimators. Furthermore, we introduce a bootstrap methodology that reproduces the laws of Cramér–von Mises test statistics of interest to model dimension, effects of specified covariates and whether or not a sliced inverse regression estimator is appropriate. Finally, we investigate the accuracy of different bootstrap procedures by means of simulations.     

The Comparison of Performances of Widely Used Cointegration Tests

The aim of this study is to compare performances of commonly cointegration tests used in literature in terms of their empirical power and type I error probabilty for various sample sizes. As a result of the study, it has been found that some tests are not appropriate in testing cointegration in terms of empirical power and type I error probability. As a result of simulation study, λ_max test for any values of ρ and sample sizes have been found most appropriate test in conclusion.     

New Shrinkage Parameters for the Liu-type Logistic Estimators

The binary logistic regression is a widely used statistical method when the dependent variable has two categories. In most of the situations of logistic regression, independent variables are collinear which is called the multicollinearity problem. It is known that multicollinearity affects the variance of maximum likelihood estimator (MLE) negatively. Therefore, this article introduces new shrinkage parameters for the Liu-type estimators in the Liu (2003) in the logistic regression model defined by Huang (2012) in order to decrease the variance and overcome the problem of multicollinearity. A Monte Carlo study is designed to show the goodness of the proposed estimators over MLE in the sense of mean squared error (MSE) and mean absolute error (MAE). Moreover, a real data case is given to demonstrate the advantages of the new shrinkage parameters.     

Raising expectations or dashing hopes?: Well-being and participation in disadvantaged areas

The idea of ‘well-being’ has emerged as a centrallens through which to understand people and places in socialpolicy terms. At the same time, ‘participation’has become central in debates and practices about communitylife in general and neighbourhood renewal in particular. Thisarticle explores the relationship between well-being and participationin disadvantaged areas. Drawing on primary research in two NewDeal for Communities (NDC) areas in the United Kingdom, I explorehow local people's expectations of participation in NDC aredisappointed and how that disappointment may pose a key riskto well-being. I propose, therefore, that experiences of participationin areas of neighbourhood renewal threaten levels of well-beingin the very disadvantaged areas where it is most needed.     

Multivariate partially linear regression in the presence of measurement error

AStA Advances in Statistical Analysis - In this paper, multivariate partially linear model with error in the explanatory variable of nonparametric part, where the response variable is m...     

Fostering social capital in an international multi-stakeholder issue network

Scholars have theorized that public relations contributes to societies and communities by bringing attention to pressing public issues and fostering social capital in civil society networks. However, the extant research has studied civil society networks of NGOs, donors, and the media in transitional countries. This study extends the public relations model of civil society in two ways. First, it broadens the scope to an international context. Second, it draws from the multi-stakeholder issue network perspective to conceptualize a civil society network as a space where stakeholders of an issue mix their interests as they collectively address a pressing public issue. The literature on international and multi-stakeholder networks suggest that the international scope and the mixing of interests across sectors may restrict the production of social capital. The results from the social network analysis suggests that the mixing of interests across sectoral and geopolitical boundaries did not restrict the production of social capital. Rather, the patterns of the relationships among those on the core and those on the periphery of the network restricted the production of social capital. Such finding demonstrates how public relations’ functions like relationship building can have profound influences on social capital and civil society networks. The implications for public relations theorizing and research are discussed.     

Ecosystem services deficits in cross-boundary landscapes: spatial mismatches between green and grey systems

Urban Ecosystems - Quantitative analyses of the influence of boundary lines on ecosystem services distributions remain rare. Approaches towards integrative assessments of green and grey landscape...