A non standard χ2-test of fit for testing uniformity with unknown limits

A χ²-test of fit for testingH ₀ “X～U(a,b), a,b unknown” is suggested. It is nonstandard because the usual regularity assumptions are not satisfied. The asymptotic distribution of the test statistic underH ₀ is derived. The error probabilities of the first kind are investigated by Monte Carlo simulation for samples of small and medium size.     

Systematic choice among multiple outputs of public projects without prices

Benefit-cost analysis has been applied to the evaluation of public investment projects whose outputs have market derived prices. When prices are attached to all inputs and outputs it is possible to systematically rank projects by net return and to derive some implications for budget size. However, a consistent and explicit basis for ranking projects with non-priced outputs has been lacking. A step by step procedure is developed for systematic choice when some or all outputs have no market value reference points. The method makes clear the information that can be provided by the analyst and that which must be provided by the political process. The procedure gives no easy answer to value conflicts among members of society, but it does allow citizens to determine if public officials are making project choices consistent with announced objectives and explicit value weights. Such procedures could facilitate public participation in project choice and monitoring the behavior of public officials.     

Suspended Identity: Identity Transformation in a Maximum Security Prison

This article presents an empirically-grounded model of identity transformation that differs both from the gradual transformation processes that characterize most adult identity changes and from such radical transformation processes as brainwashing or conversion. Data for the study are derived from participant observation and focused interviews with first-time, short-term inmates at a maximum security prison. By attempting to suspend their preprison identities and constructing inauthentic prison identities through impression management, these inmates are able to forestall more radical identity change and to maintain a general sense of identity continuity for most of their prison careers.     

New characteristics for portfolio surveillance

This paper elaborates the tools for the surveillance of the global minimum variance portfolio weights. Golosnoy and Schmid [V. Golosnoy and W. Schmid, EWMA control charts for optimal portfolio weights, Sequential Anal. 26 (2007), pp. 195–224] introduced exponentially weighted moving average-type control charts for this task based on the processes of the estimated weights as well as of their first differences. This paper proposes the new approximations to these processes exhibiting better stochastic properties for sequential monitoring purposes. The control schemes for the new processes are compared for different types of economically relevant changes using Monte Carlo simulations. The suggested procedures appear to be superior for the considered performance measures.     

On human capital formation with exit options

We explore the relationship between economic volatility and human capital formation within a context of migration. We show that increased variability may raise the average educational level of the population even after netting out expected migration. In particular, we demonstrate that this is the case when individuals' abilities and the economy-wide shock are uniformly distributed. We thank Frédéric Docquier, Pascal Lévy-Garboua, Abraham Lioui, and two anonymous referees for their comments. Responsible editor: Alessandro Cigno.     

Health care service and ethnic minorities: The case of Austria

The present article delineates the way in which a number of factors—societal as well as individual—define the health profile of ethnic minorities as well as hinder their access to and appropriation of an adequate health care service. It is based on an exploratory study—the first of its kind to be carried out in Austria—undertaken by ‘The Interdisciplinary Centre for Comparative Research in the Social Sciences’ on the subject of ‘Foreigners and Health’.     

International security and the world economy

The recent increase in international tension associated with Iran and Afghanistan raises many questions about the longerterm health of the international economy. There is growing concern about potential conflicts affecting sources of key raw materials, serious problems in the international payments system and growing domestic priorities on defence production. Strategic political decisions rather than private business decisions are likely to affect the future course of the world economy. This is especially true because of the increasing political dependence of the industrial countries on developments abroad. The author examines the historical setting of inter-dependence, the current dilemmas created by it and the policy steps likely to dominate the next decade.     

Tree-structured modelling of varying coefficients

Statistics and Computing - The varying-coefficient model is a strong tool for the modelling of interactions in generalized regression. It is easy to apply if both the variables that are modified as...