Intensity of preference and related uncertainty in non-compensatory aggregation rules

Non-compensatory aggregation rules are applied in a variety of problems such as voting theory, multi-criteria analysis, composite indicators, web ranking algorithms and so on. A major open problem is the fact that non-compensability implies the analytical cost of loosing all available information about intensity of preference, i.e. if some variables are measured on interval or ratio scales, they have to be treated as measured on an ordinal scale. Here this problem has been tackled in its most general formulation, that is when mixed measurement scales (interval, ratio and ordinal) are used and both stochastic and fuzzy uncertainties are present. Objectives of this article are first to present a comprehensive review of useful solutions already proposed in the literature and second to advance the state of the art mainly in the theoretical guarantee that weights have the meaning of importance coefficients and they can be summarized in a voting matrix. This is a key result for using non-compensatory Condorcet consistent rules. A proof on the probability of existence of ties in the voting matrix is also developed.     

Parameter estimation in the classical occupancy model

Under the classical occupancy model, balls are randomly and independently allocated into cells (by assuming that each arrangement of balls is equally probable) in such a way that the random variable of interest is the empty cell number. In some practical applications the total cell number is known and the target parameter turns out to be the number of balls which is estimated on the basis of the observed empty cell count. For instance, the classical occupancy model is commonly adopted for airborne-microorganism abundance estimation, a topic of central importance in environmental microbiology, in aerobiology and in occupational medicine. The classical occupancy model is also applied to the analysis of US National AIDS surveillance data (which are inflated by duplicate reporting) in order to estimate the true population size of AIDS cases. Since many inaccuracies and misunderstandings are present in applied literature, the aim of the present paper is to introduce a formal analysis of the inferential issues connected with the estimation of the number of balls.     

The Input Evaluation of Generalized Bernoulli Processes for Salary Lines Construction by Means of Continuous Time Generalized Non-Homogeneous Semi-Markov Processes

Salary line forecasting assumes a relevant role in manpower and in pension funds Previously, the authors presented a generalized Bernoulli process, useful for forecasting the evolution of salary lines, taking into account the salary costs, the number of workers at each rank and the probability transitions between the ranks. The problem with applying this model is constructing the probability of transition between the grades. In this article, we will present a model that allows obtaining these probabilities by means of the solution of the evolution equation of a generalization of continuous time non-homogeneous semi-Markov processes.     

Editorial: Forum on recent developments on finitely additive probabilities and coherence

Statistical Methods & Applications -     

Some remarks on Lorenz ordering-preserving functionals

Basing on two well-known characterization results on stochastic dominance and continuous majorization relation, the ordering-preserving property-with respect to Lorenz ordering-is deduced for a wide class of families of functionals on a class of distributions. As a consequence the isotonicity ofZ Zenga concentration index is deduced as an immediate application of a characterization result, in particular of the first degree stochastic dominance relation. Moreover it is also shown that a classical inequality by Fan and Lorenz is a basic reference for the determination of a wide class of Lorenz ordering-preserving functionals. Isotonicity ofZ could also be seen as a straighforward application of Fan and Lorenz inequality.     

Probabilistic spatial power indexes

In this study, we present a generalization of spatial power indexes able to overcome their main limitations, namely (i) the excessive concentration of power measures; (ii) the too high sensitivity to players’ location in the ideological space. Voters’ propensity to support an issue is modeled via a random utility function with two additive terms: the deterministic term accounts for voters’ preference-driven/predictable behavior; the random one is a catch-all term that accounts for all the idiosyncratic/unpredictable factors. The relative strength of the two terms gives rise to a continuum of cases ranging from the Shapley value, where all aggregation patterns are equally probable, to a standard spatial value, like the Owen–Shapley index, where instead the conditional order is fully deterministic. As an illustrative application, we analyze the distribution of power in the Council of Ministers under three different scenarios: (i) EU15 Pre-Nice; (ii) EU27 Nice Treaty; (iii) EU27 Lisbon Treaty.     

Unit Root Tests under Time-Varying Variances

The paper provides a general framework for investigating the effects of permanent changes in the variance of the errors of an autoregressive process on unit root tests. Such a framework - which is based on a novel asymptotic theory for integrated and near integrated processes with heteroskedastic errors - allows to evaluate how the variance dynamics affect the size and the power function of unit root tests. Contrary to previous studies, it is shown that non-constant variances can both inflate and deflate the rejection frequency of the commonly used unit root tests, both under the null and under the alternative, with early negative and late positive variance changes having the strongest impact on size and power. It is also shown that shifts smoothed across the sample have smaller impacts than shifts occurring as a single abrupt jump, while periodic variances have a negligible effect even when a small number of cycles take place over a given sample. Finally, it is proved that the locally best invariant (LBI) test of a unit root against level stationarity is robust to heteroskedasticity of any form under the null hypothesis.     

Correlates of internal audit function involvement in sustainability audits

Journal of Management and Governance - While an increasing number of organizations are engaging in sustainability activities, assurance of these activities is relatively new. We investigate the...     

Inhabitants' and Experts' Assessments of Environmental Quality for Urban Sustainability

In the context of sustainable urban development, we discuss the assessment of residential environmental quality and the importance of considering inhabitants' perceptions of natural resources in urban areas. Two series of studies, conducted in Guildford (United Kingdom) and in Rome (Italy), addressed the correspondence, or contrast, between inhabitants' and experts' assessment of urban quality concerning two crucial natural resources: air quality and biodiversity. The Guildford study emphasized the accuracy of the assessment of urban air quality by experts and the public. The Rome study focused on the evaluative criteria employed by scientists and the public in assessing the quality of urban green spaces. The results from both studies shed more, albeit complex, light on the simple conventional wisdom about public versus expert understanding and assessment of environmental quality. Study implications are discussed for the support of programs, methods, and tools for urban development, particularly with regard to effective communication and better structuring of residents' participation in urban environmental decision making.