Fundamental accrued capital gains and the measurement of top incomes: an application to Chile

Most previous studies of income inequality have either ignored capital gains or have used taxable realized capital gains to estimate top incomes. Neither of these approaches is fully satisfactory. We apply for the first time a new methodology that allows us to account for fundamental accrued capital gains as part of the top incomes in a theoretically consistent manner. We estimate the shares of the super-rich in Chile showing that accrued capital gains have a large impact on these estimates. Also, the top income shares estimated using fundamental capital gains appear to exhibit a more stable and presumably more plausible time profile than estimates based on capital gains derived from asset market variations.     

Migration to the US and marital mobility

When immigrants enter the US they typically access a marriage market with a larger supply of educated spouses compared to the marriage market in their home countries. Absent any selectivity bias, this access should increase the likelihood that migrants ‘marry-up’ in terms of education. We combine survey data on British and German immigrants in the US with data on natives in Britain and Germany to estimate the causal effect of migration on educational mobility through cross-national marriage. To control for selective mating, we instrument educational attainment using government spending on education in the years each person was of school-age. To control for selective migration, we instrument the migration decision using inflows of immigrants to the US during puberty and early adulthood. We find strong selectivity effects that work against the positive prospects of the US marriage market. All migrants give up spousal education in exchange for US entry and assimilation. Migrant men also give up spousal education because they cannot compete with native men as bread-earners. Migrant women have some advantage in the US marriage market, as they can compete with native women in home production.     

The Endangered Arctic,the Arctic as Resource Frontier: Canadian News Media Narratives of Climate Change and the North

The Arctic is one of the most radically altered parts of the world due to climate change, with significant social and cultural impacts as a result. Using discourse network analysis and qualitative textual analysis of articles published in the Globe and Mail and National Post during the period 2006 to 2010, we identify and analyze key frames that interpret the implications of climate change on the Arctic. We examine Canadian national news media coverage to ask: How does the Arctic enter media coverage of climate change? Is there evidence of a climate justice discourse in relation to regional disparities in the risks and harms of climate change between northern and southern Canada? Climate change in the Arctic is often framed through the lens of Canadian national interests, which downplays climate‐related social impacts that are already occurring at subnational political and geographical scales. L'Arctique est une des régions du monde la plus radicalement altérée par le changement climatique, menant comme résultat des importants changements sociaux et culturels. En utilisant l'analyse des réseaux de discours ainsi que l'analyse textuelle qualitative des articles publiés dans le Globe and Mail et le National Post de 2006 à 2010, nous identifions and analysons des cadres clés qui servent à interpréter les conséquences du changement climatique dans l'Arctique. Nous examinons la couverture des médias nationaux canadiens pour pouvoir demander : comment est‐ce que l'Arctique s'insère dans la couverture médiatique du changement climatique? Est‐ce qu'il y a de la preuve d'un discours de la justice climatique en relation des disparités régionales des risques et méfaits du changement climatique entre le Canada du nord et du sud? Le changement climatique dans l'Arctique est souvent encadré à travers le prisme des intérêts nationaux canadiens, ce qui minimise les impacts sociaux reliés au climat qui se produisent actuellement aux échelons sous‐nationaux politiques et géographiques.     

Defining Women's Global Political Empowerment: Theories and Evidence

Although women's access to political power has increased tremendously, nowhere are women equal to men in their influence over and exercise of political authority. Scholarship on women's political empowerment is uneven and incomplete. This article interrogates ‘women's political empowerment’, considering its definition, measurement, and application. First, we establish that academics and practitioners have not articulated a clear definition of women's political empowerment. To fill this gap, we put forward a new definition that conceptualizes women's political empowerment as a transformative process. We then review existing social science literature on women's political empowerment. We argue that scholars must expand research to develop a broader vision of women's political empowerment and develop measures that capture this breadth.     

A ONE-PERIOD STOCHASTIC INVENTORY PROBLEM WITH A LUMP-SUM PENALTY COST

This paper presents an inventory problem related to the one-period stochastic inventory (or “newsboy”) problem. In this problem, the firm has to decide how much product to order to meet a random one-period demand. The version of the problem presented is novel in two respects. First, demand is explicitly permitted to be negative, and second, the penalty (or shortage) cost is assumed to be independent of the magnitude of the shortage. This situation is shown to change the form of the cost function and to complicate the determination of optimal policies. The form of the optimal policy is developed, and two example problems are presented in some detail.     

A VARIANCE-REDUCTION STRATEGY FOR RSM SIMULATION STUDIES

The application of optimization techniques in digital simulation experiments is frequently complicated by the presence of large experimental error variances. Two of the more widely accepted design strategies for the resolution of this problem include the assignment of common pseudorandom number streams and the assignment of antithetic pseudorandom number streams to the experimental points. When considered separately, however, each of these variance-reduction procedures has rather restrictive limitations. This paper examines the simultaneous use of these two techniques as a variance-reduction strategy in response surface methodology (RSM) analysis of simulation models. A simulation of an inventory system is used to illustrate the application and benefits of this assignment procedure, as well as the basic components of an RSM analysis.     

DEGENERACY AND THE (MIS)INTERPRETATION OF SENSITIVITY ANALYSIS IN LINEAR PROGRAMMING

Under conditions of degeneracy, sensitivity analysis information such as cost and right-hand-side ranges, which are produced by standard linear programming procedures used in commercial codes, can be misleading. From a managerial perspective, the interpretation of such information can be erroneous. In this paper we present these problems, explain their occurence with elementary examples, and discuss procedures for their resolution.     

THE EFFECT AND COST OF FORECAST ERROR BIAS FOR MULTIPLE-STAGE PRODUCTION-INVENTORY SYSTEMS

This paper examines forecast error with an intention not to minimize forecast error so much as to bias the resultant error in order to achieve better managerial results. Much work has been accomplished by other researchers toward the goal of minimizing forecast error—sometimes by the use of sophisticated forecasting techniques. The results of this paper indicate that manipulating forecast error bias may be the better managerial strategy as opposed to going to great lengths to minimize forecast error. Subject Areas: Forecasting, Aggregate Planning, Capacity Planning, and Production/Operations Management.     

An Evaluation of Capacity Sensitive Order Review and Release Procedures in Job Shops

We investigate the performance of capacity-sensitive order review and release (ORR) procedures in job shop environments that have not been previously explored. Previous research has ignored the case of job shops which must perform to very tight due-dates because of time-sensitive customers. We propose and test a new capacity sensitive ORR procedure called path based bottleneck (PBB) in such environments, along with the modified infinite loading (MIL) procedure which has been shown to work well in several studies. We compare the performance of these two controlled release rules with that of immediate release rule under different conditions of capacity utilization and customer specified exogenous duedates. Our results indicate that PBB performs well in lowering total costs when due-dates are tight, while MIL is a better procedure with relatively loose to medium due-dates. We also show that in many cases, the shortest processing time (SPT) dispatching rule is a superior performer than a due-date based rule like critical ratio (CR); a conclusion which is contrary to the existing research in this area. In addition, the shop floor control policies recommended are shown to be sensitive to the cost structure of the firm. The managerial implications of this research in providing effective shop floor control in job shops operating under tight due-date conditions are also discussed.