Fitting spatial regressions to large datasets using unilateral approximations

Maximum likelihood estimation of a spatial model typically requires a sizeable computational capacity, even in relatively small samples, and becomes unfeasible in very large datasets. The unilateral approximation approach to spatial model estimation (suggested in Besag 1974 Besag, J. E. 1974. Spatial interaction and the statistical analysis of lattice systems. Journal of the Royal Statistical Society. Series B (Methodological) 36 (2):192–236.[Crossref], [Web of Science ®] , [Google Scholar]) provides a viable alternative to maximum likelihood estimation that reduces substantially the computing time and the storage required. In this article, we extend the method, originally proposed for conditionally specified processes, to simultaneous and to general bilateral spatial processes over rectangular lattices. We prove the estimators’ consistency and study their finite-sample properties via Monte Carlo simulations.     

HERD BEHAVIOR IN FINANCIAL MARKETS: AN EXPERIMENT WITH FINANCIAL MARKET PROFESSIONALS

We study herd behavior in a laboratory financial market with financial market professionals. An important novelty of the experimental design is the use of a strategy‐like method. This allows us to detect herd behavior directly by observing subjects' decisions for all realizations of their private signal. In the paper, we compare two treatments: one in which the price adjusts to the order flow in such a way that herding should never occur, and one inwhich the presence of event uncertainty makes herding possible. In the first treatment, subjects seldom herd, in accordance with both the theory and previous experimental evidence on student subjects. A proportion of subjects, however, engage in contrarianism, something not accounted for by the theory. In the second treatment, the proportion of herding decisions increases, but not as much as the theory would suggest. Moreover, contrarianism disappears altogether. In both treatments, in contrast with what theory predicts, subjects sometimes prefer to abstain from trading, which affects the process of price discovery negatively. (JEL: C92, D82, G14)     

A Game–Theoretic View of the Fiscal Theory of the Price Level

The goal of this paper is to probe the validity of the fiscal theory of the price level by modelling explicitly the market structure in which households and the government make their decisions. I describe the economy as a game, and I am thus able to state precisely the consequences of actions that are out of the equilibrium path. I show that there exist government strategies that lead to a version of the fiscal theory, in which the price level is determined by fiscal variables alone. These strategies are however more complex than the simple budgetary rules usually associated with the fiscal theory, and the government budget constraint cannot be merely viewed as an equilibrium condition.     

Multiple Referrals and Multidimensional Cheap Talk

In previous work on cheap talk, uncertainty has almost always been modeled using a single–dimensional state variable. In this paper we prove that the dimensionality of the uncertain variable has an important qualitative impact on results and yields interesting insights into the “mechanics” of information transmission. Contrary to the unidimensional case, if there is more than one sender, full revelation of information in all states of nature is generically possible, even when the conflict of interest is arbitrarily large. What really matters in transmission of information is the local behavior of senders’ indifference curves at the ideal point of the receiver, not the proximity of players’ ideal point.     

Childhood family structure and schooling outcomes: evidence for Germany

We analyze the impact on schooling outcomes of growing up in a non-intact family in Germany. We find that this experience is associated with worse outcomes according to estimates from models that do not control for possible correlations between common unobserved determinants of family structure and educational performance. Evidence of adverse effects emerges also when endogeneity is accounted for. In such cases, however, the point estimates are typically smaller, and their confidence intervals are large enough to include zero, particularly for individuals who grew up in Western Germany.     

Artistic separation versus artistic mixing in European multicultural cities

This introductory article discusses the diversification of diversity in Europe. It then looks at the tension between ethnic separation and ethnic mixing in urban Europe in general terms. The next section elaborates on a similar tension in the field of popular arts. Finally, the article presents the main insights of the contributions to the special issue.     

Evaluation of the health risks to garment workers in the city of Xambrê-PR, Brazil

This study evaluated the risks for cardiovascular disease and the life habits of garment industry workers in northwestern Paraná state, Brazil. The following parameters were assessed: body composition, cardiorespiratory fitness, eating habits and physical activities by garment industry workers. Cardiovascular risk was observed in some of the studied subjects, in the form of high BMI and reduced maximal oxygen uptake. The development of a workplace quality-of-life program is suggested, aiming to stimulate the development of physical activities to improve the cardiovascular conditioning of workers.     

Effects of pushing height on trunk posture and trunk muscle activity when a cart suddenly starts or stops moving

Unexpected sudden (un)loading of the trunk may induce inadequate responses of trunk muscles and uncontrolled trunk motion. These unexpected perturbations may occur in pushing tasks, when the cart suddenly starts moving (unloading) or is blocked by an obstacle (loading). In pushing, handle height affects the user's working posture, which may influence trunk muscle activity and trunk movement in response to the perturbation. Eleven healthy male subjects pushed a 200 kg cart with handles at shoulder and hip height in a start condition (sudden release of brakes) and a stop condition (bumping into an obstacle). Before the perturbation, the baseline of the trunk inclination, internal moment and trunk extensor muscle activity were significantly higher when pushing at hip height than at shoulder height. After the perturbation, the changes in trunk inclination and internal moment were significantly larger when pushing at shoulder height than at hip height in both conditions. The opposite directions of changes in trunk inclination and internal moment suggest that the unexpected perturbations caused uncontrolled trunk motion. Pushing at shoulder height may impose a high risk of low-back injury due to the low trunk stiffness and large involuntary trunk motion occurring after carts suddenly move or stop.