FINANCIAL INNOVATION, PRICE SMOOTHING, AND MONETARY POLICY

This paper examines an unregulated transaction services market that is subject to financial innovation in an economy that experiences aggregate supply and demand shocks. The availability of this unregulated market to transactors smooths the price response to these shocks. However, financial innovations act as money supply shocks that increase price disturbances. If there is persistence in the real aggregate supply shocks and in the rate of adoption of financial innovations, then the central bank can forecast some portion of the changes in transaction requirements that accompany these shocks and damp the residual variation in prices by accommodating these anticipated needs.     

A bayesian test for a two-way contingency table using independence priors

One method of testing for independence in a two-way table is based on the Bayes factor, the ratio of the likelihoods under the independence hypothesis H and the alternative hypothesis H. The main difficulty in this approach is the specification of prior distributions on the composite hypotheses H and H. A new Bayesian test statistic is constructed by using a prior distribution on H that is concentrated about the “independence surface” H. Approximations are proposed which simplify the computation of the test statistic. The values of the Bayes factor are compared with values of statistics proposed by Gunel and Dickey (1974), Good and Crook (1987), and Spiegelhalter and Smith (1982) for a number of two-way tables. This investigation suggests a strong relationship between the new statistic and the p-value.     

Mortality of American Troops in the Iraq War

We estimate the death rate of United States troops deployed to Iraq from the beginning of the US invasion through 30 September 2006. Eighty percent of the deaths in Iraq were combat‐related. The death rate in Iraq is lower than that of the civilian population of the United States but substantially higher than that of young adults. It is much lower than the death rate of US troops in Vietnam, in part because a much smaller fraction die among those wounded in Iraq. We also estimate relative mortality levels for US troops according to numerous demographic variables through 30 November 2006. The risk of death in Iraq per deployment is shown to be highest for Marines; Naval and Air Force personnel in Iraq have lower death rates than the civilian population of comparable age. Other categories with above‐average mortality in Iraq are enlisted troops, males, younger persons, and Hispanics.     

Kurtosis and spread

An increase in kurtosis is achieved through the location- and scale-free movement of probability mass from the “shoulders” of a distribution into its centre and tails. We introduce a coherent structure of ordering and measures, requiring no symmetry assumption, that represent different formalizations of this movement. For this purpose spread functions and spread-spread plots are defined. The orderings impose growth patterns on the spread-spread plot of the distributions involved, and the weakest involve both a specific scale-matching technique and placement of “shoulders”. The role of existing kurtosis orderings and measures in this general context is identified and examples discussed throughout.     

A nonparametric repeated significance test with adaptive target sample size

In this article a general result is derived that, along with a functional central limit theorem for a sequence of statistics, can be employed in developing a nonparametric repeated significance test with adaptive target sample size. This method is used in deriving a repeated significance test with adaptive target sample size for the shift model. The repeated significance test is based on a functional central limit theorem for a sequence of partial sums of truncated observations. Based on numerical results presented in this article one can conclude that this nonparametric sequential test performs quite well.     

The impact of involuntary job loss on those disabled by society: a pilot study to encourage effective participation

Over half of the people who become disabled whilst employed are thought to be pressured into leaving their job. This study investigates the experience of involuntary retirement/redundancy due to disability. Three researchers who had all experienced such involuntary job loss were trained to conduct the research. Semi-structured interviews were designed and conducted by disabled researchers. The training of the researchers enabled them to successfully conduct a research project. The results of the project show the impact of involuntary job loss due to disability to be considerable. This study would suggest that government reforms to create new opportunities for disabled people of a working age are well overdue. Although there were some problems experienced with the amount of training required and the lack of objectivity, training disabled researchers to conduct research proved to be a valuable experience for both the researchers and the facilitators.