Loss functions for estimation of extrema with an application to disease mapping

It is often of interest to find the maximum or near maxima among a set of vector‐valued parameters in a statistical model; in the case of disease mapping, for example, these correspond to relative‐risk “hotspots” where public‐health intervention may be needed. The general problem is one of estimating nonlinear functions of the ensemble of relative risks, but biased estimates result if posterior means are simply substituted into these nonlinear functions. The authors obtain better estimates of extrema from a new, weighted ranks squared error loss function. The derivation of these Bayes estimators assumes a hidden‐Markov random‐field model for relative risks, and their behaviour is illustrated with real and simulated data.     

An Empirical Examination of Quality Certification in a "Lemons Market"

This article examines the effect third-party certification has on a market characterized by adverse selection. Using an original data set from the market for young thoroughbreds, we show that certification alleviates problems of adverse selection by examining the effect certification has on breeder decisions to retain or sell horses and the effect these decisions have on observed prices. Data on the racetrack performance of the horses confirm the results.     

International Tax Competition: A Case for International Cooperation in Globalization

The liberalization of international financial flows and foreign direct investment has induced countries to use diverse measures to attract inflow of foreign capital and foreign direct investment, which is expected to have a positive effect on the growth of GDP and thus a positive effect on social welfare. Tax exemption, reduction of tax rate, tax holiday, or diverse subsidies are some of the most important measures used. In this paper we study international tax cooperation, i.e., countries change and especially reduce tax rate for corporate income or for asset revenues to attract inflow of foreign direct investment. Both theoretical and empirical studies have shown the sensibility of foreign direct investment decision with respect to tax rate differences between home countries and host countries. In general, more inflow of foreign direct investment can be expected if the tax rate of the home country is lower than that of foreign countries. This is the main reason for international tax cooperation. In this paper we propose a simple model to prove the sub-optimal Nash non cooperative solution in a two-country tax-competition game. The model shows that international tax cooperation can improve welfare of the participating countries. How to reach a cooperative solution for an international tax competition game (ITCG) is therefore an important issue for further discussions and studies. International institutions can play a crucial role to reach international tax cooperation or international tax harmonization.     

Profile of Some Patients Who Prematurely Terminate Analysis

This paper is concerned with cases in which patients who have been well established in treatment decide to end it prematurely. In examining the issue among my patients who left against my advice, I isolated in some of them a number of common traits, of which the existence of a long-standing idealizing transference was central. Four of these cases are presented, including two in which the resistance was successfully penetrated and two in which it was not and the patient left treatment. The definition of premature termination is seen in the context of that of a complete analysis.     

The Effect of Learning Experiences and Context on Infant Imitation and Generalization

Over the first years of life, infants gradually develop the ability to retrieve their memories across cue and contextual changes. Whereas maturational factors drive some of these developments in memory ability, experiences occurring within the learning event may also impact infants' ability to retrieve memories in new situations. In 2 experiments we examined whether it was possible to facilitate 12‐month‐old infants' generalization of learning in the deferred imitation paradigm by varying experiences before or during the demonstration session, or during the retention interval. In Experiment 1, altering the length, timing, or variability of training had no impact on generalization; infants showed a low, but consistent level of memory retrieval. In Experiment 2, infants who experienced a unique context for encoding and retrieval exhibited generalization; infants who experienced the context prior to the demonstration session, or during the retention interval, did not. Specificity is a robust feature of infant memory and is not substantially altered by encoding experiences in an observational learning paradigm. Previous history with a learning environment can, however, impact the flexibility of memory retrieval.     

Statistical consulting

The paper and the special issue focus on the activity of statistical consulting and its varieties. This includes academic consulting, consulting to and in industry as well as statistics in public media.