Optimal cutpoints for random observations

For the discretisation of a continuous random variable into different categories the choice of cutpoints is essential. A popular application is the contingent valuation method. In a parametric approach, the choice of cutpoints directly effects the quality of the estimates. Therefore, optimal cutpoints are desirable in order to estimate the parameters most accurately. We consider an arbitrary number of cutpoints and determine optimal cutpoints for the exponential and Gumbel distribution and prove that the c-optimal cutpoints for the location parameter of the logistic distribution have corresponding equal category probabilities. Furthermore, we show that in the limiting case for infinitely many cutpoints there is no loss of information.     

A multidimensional view on poverty in the European Union by partial order theory

Poverty can be seen as a multidimensional phenomenon described by a set of indicators, the poverty components. A one-dimensional measure of poverty serving as a ranking index can be obtained by combining the component indicators via aggregation techniques. Ranking indices are thought of as supporting political decisions. This paper proposes an alternative to aggregation based on simple concepts of partial order theory and illustrates the pros and cons of this approach taking as case study a multidimensional measure of poverty comprising three components – absolute poverty, relative poverty and income – computed for the European Union regions. The analysis enables one to highlight conflicts across the components with some regions detected as controversial, with, for example, low levels of relative poverty and high levels of monetary poverty. The partial order approach enables one to point to the regions with the most severe data conflicts and to the component indicators that cause these conflicts.     

Angst, Depression und die Verleugnung von Abh?ngigkeit

In this text I try to describe the intra-psychic consequences caused by internalisation of external heightened demands in today??s working situation. There has been a change from modernity??s super-ego-centered subjects to the increased ego-ideal-demands in today??s postmodern society of self-control. As a consequence of the rhetorics and ideology of permanent self-improvement, of ??positive thinking?? there is a denial of any intra-psychic conflict, any dependence. This may lead to self-exploitation, exhaustion and ??burnout?? as a self-diagnosis. People apply different strategies for coping with this situation: Application of defense mechanism like projection and splitting can only bring short-term relief. Acceptance of intra-psychic conflict, ambivalence and personal weaknesses as a form of ??intra-psychic democracy?? is a way to long-term improvements and increased tolerance for problems of the self and others.     

Gender discrimination and efficiency in marriage: the bargaining family under scrutiny

We consider a repeated family bargaining model that links the topics of employment and households. A key aspect of the model is that marital bargaining power is determined endogenously. We show that: (1) the efficiency of household decisions is sometimes inversely related to the prevailing degree of gender discrimination in labor markets; (2) women who are discriminated against have difficulty enforcing cooperative household outcomes because they may be extremely limited to credibly punish opportunistic behavior by their male partners; (3) the likelihood that sharing rules such as “equal sharing” are maintained throughout a marriage relationship is highest when men and women face equal opportunities in labor markets. Responsible editor: Deborah Cobb-Clark     

Distributional Effects of FDI: How the Interaction of FDI and Economic Policy Affects Poor Households in Bolivia

This article provides a CGE analysis of the medium to long‐run impact of FDI inflows on poverty and income distribution in Bolivia. The simulation results suggest that FDI inflows enhance economic growth and reduce poverty. However, the income distribution typically becomes more unequal. In particular, FDI widens disparities between urban and rural areas. The Bolivian government may promote the growth‐enhancing and poverty‐alleviating effects by overcoming labour‐market segmentation and providing complementary public investment in infrastructure. But simulated policy reforms or alternative productivity scenarios are hardly effective in reducing the economic divide.