Analysis of least squares regression estimates in case of additional errors in the variables

Estimation of a regression function from independent and identical distributed data is considered. The L₂ error with integration with respect to the design measure is used as error criterion. Upper bounds on the L₂ error of least squares regression estimates are presented, which bound the error of the estimate in case that in the sample given to the estimate the values of the independent and the dependent variables are pertubated by some arbitrary procedure. The bounds are applied to analyze regression-based Monte Carlo methods for pricing American options in case of errors in modelling the price process.     

Fertility Decline in Russia in the Early and Mid 1990s: The Role of Economic Uncertainty and Labour Market Crises

This paper analyses the fertility decline in Russia during theearly and mid 1990s from both a macro- and micro-perspective and presents astriking divergence between these two empirical viewpoints. While the formersuggests that the fertility decline after 1989 is associated with theeconomic hardship accompanying the transition to a market economy, themicro-evidence using the Russian Longitudinal Monitoring Survey is to thecontrary. There is no negative association between labour market uncertaintyor a labour market crisis and fertility, and frequently there is even apositive association. That is, women or couples who are themselves affectedby labour market crises often had a higher probability of having anotherchild in the period 1994–1996 than women/couples who were less affected bysuch crises. The lack of a negative association, and the presence of apositive association in many instances, is surprising from the standpoint ofeconomic fertility theory. It is also contrary to many explanatory theoriesabout the recent fertility decline in Central and Eastern European countriesthat are built on a more or less direct connection between the labour marketor an economic crisis and low fertility.     

Reply to the note by Frejka and Sardon on our paper ‘Patterns of low and lowest-low fertility in Europe’ and an erratum

The relation between socio-economic development and fertility is analysed for the Arab populations of Israel and the territories administered by Israel (i.e. the West Bank and the Gaza Strip). Retrospective survey statistics are used to reconstruct the fertility patterns of currently married Arab women, along with a variety of census information. Fertility responses to socio-economic changes are traced out in detail for the period of the British Mandate, the first 20 years of statehood 1948–67, and the contemporary post-1967 period. The figures show that both Christian and Moslem Arab populations experienced similar high levels of fertility up to the late 1920s. Subsequently, there has been a negative relation between socio-economic development and fertility. In terms of levels of development and fertility decline the sub-populations are ranked in the following order: Israeli urban Christians; Israeli urban Moslems; Israeli rural Christians; Israeli rural Moslems; Moslems in the Administered Territories. The analysis suggests that the timing and rate of fertility reduction are related to the character of specific demographic, economic, and political changes that generate conflicts at the family level.     

The Parenthood Happiness Puzzle: An Introduction to Special Issue

Contrary to conventional wisdom, recent studies argue that parenthood is not necessarily related to higher parental subjective well-being (SWB). However, parenthood remains an important aspect of adults’ lives, also in highly developed societies where childbearing has become optional, financially expensive and affecting other goals in life. Whereas a great deal of effort has been put into answering why fertility is low in so many developed countries, one may even ask why is it not even lower. The answer is not obvious but stems from the fact that, to date, the relationship between fertility and SWB has been understudied and the mechanisms at work are not well understood. This special issue makes a step forward in this line of research, providing a coherent set of papers addressing different dimensions of the relationship between fertility and SWB and its mechanisms, starting from a demographic perspective, but integrating theories and research results from other disciplines. The collection of papers assesses the effect of the birth of a child on the individual SWB from angles still unexplored with the idea that the effects of fertility on individuals’ SWB are diverse depending on individual, couple and country contextual factors.