Overviewing the transition of Markowitz bi-criterion portfolio selection to tri-criterion portfolio selection

Over 60 years ago, Markowitz introduced the mean-variance efficient frontier to finance. While mean-variance is still the predominant model in portfolio selection, it has endured many criticisms. One serious one is that it does not allow for additional criteria. The difficulty is that the efficient frontier becomes a surface. With it now possible to compute such a surface, we provide an overview on how Markowitz’s risk-return (bi-criterion) portfolio selection can be extended to tri-criterion portfolio selection. With a focus on the geometry of the extension, many graphs are used to illustrate.     

On Past and Future of Community: A Pragmatic Analysis

Charles Sanders Peirce proposed a semiotic that directed attention to the person or people who are providing interpretation, making place for the social and cultural. Following Peirce, we consider the meanings and consequences the term “community” has in an international context. We argue that English affords a richer set of meanings to community, which was not paralleled in the languages of Southeast Asia. The encounter between English and Southeast Asian languages has lexical consequences, but more momentous are the cultural changes they index. In Southeast Asian cultures, there is less need for “community” to take on broader meanings, since those cultures assume social relationality. Thus, the spread of English “community” could be associated with a rise of individualism in these other cultures, but it could also impoverish the Anglophone West, which would be denied alternative frameworks in which associational and affective meanings of community are unnecessary.     

Program of the Section on Economic and Business Statistics

Suppose that in the situation of a paired t test natural pairing, such as the use of twins, is not possible. Reduction in variability is then often achieved artificially, for example by pairing animals of similar birth weight. This article points out that, unless such pairing is ineffective, the usual assumptions underlying the paired t test are violated. Nevertheless, simulation indicates that, with randomization in the allocation of treatments, the standard procedure gives good results. Our bivariate normal model provides the factor by which the length of the confidence interval for the mean treatment difference is reduced as a result of the pairing. Another form of pairing sometimes used is shown to be incorrect. Nonparametric analogs are also briefly considered.     

Assessing the transportation consequences of land use transformation in urban China

This paper assesses the accessibility and mobility consequences of urban land transformation in expanding Chinese cities. It defines transportation–land use connections in China's context and analyzes the accessibility and mobility uncertainties associated with current urban development themes, including the formulation of CBD, the development of satellite communities, and the evolution toward multi-center layout. This article points out that appropriate accessibility and mobility objectives are not well considered in land development, and current development themes tend to lengthen trips and lead to increased congestion in the context of growth and motorization. A strong national leadership is needed to help city governments integrate accessibility and mobility objectives into urban development.     

Copula, marginal distributions and model selection: a Bayesian note

Copula functions and marginal distributions are combined to produce multivariate distributions. We show advantages of estimating all parameters of these models using the Bayesian approach, which can be done with standard Markov chain Monte Carlo algorithms. Deviance-based model selection criteria are also discussed when applied to copula models since they are invariant under monotone increasing transformations of the marginals. We focus on the deviance information criterion. The joint estimation takes into account all dependence structure of the parameters’ posterior distributions in our chosen model selection criteria. Two Monte Carlo studies are conducted to show that model identification improves when the model parameters are jointly estimated. We study the Bayesian estimation of all unknown quantities at once considering bivariate copula functions and three known marginal distributions.     

Interblock information in multidimensional block designs

In many experimental situations, d-way heterogeneity among experimental units may be controlled through use of multiple blocking criteria. In some cases it is reasonable to regard some or all of the block effects as random. Then the model is mixed and observations within blocks are correlated. Very general estimators of treatment effects and their dispersion matrix with recovery of interblock information are provided. They apply to designs with d > 1 blocking criteria that may be crossed, nested, or a combination thereof. These general results may be specialized to provide analyses of new classes of MBD's or used directly for numerical analyses of designs in the general class, perhaps through use as the basis for very general computer programs. Estimation of variance components is discussed, and an example is provided to illustrate adaptation of the general results.     

The impact of right-to-work laws on employer unfair labor practice charges

The expected impact of right-to-work (RTW) laws on employer unfair labor practices is discussed within a resource allocation framework. How RTW laws affect the relative prices of different organizing tactics is also considered. Empirical analysis based on cross-sectional data for 1970, 1975, and 1980 shows that the impact of RTW laws on employer unfair labor practice charges is insignificant. Other variables that affect charge activity are also discussed in terms of their effect on employer/union organizing resource allocation decisions.