Sovereign bond holdings and monetary policy operations in the euro area

This paper investigates the relationship between sovereign bond holdings of banks and refinancing operations by the ECB for countries in the euro area. We use data collected by Bruegel as well as a new dataset compiled from the annual statements of national central banks to estimate panel regression models. Our findings support the hypothesis that the ECB’s refinancing operations have increased resident banks’ exposure to domestic sovereign bonds. This is in line with the moral suasion theory advanced in the literature. These results strengthen the case for regulatory changes aimed at reducing the sensitivity of banks to sovereign risk.     

II. „Nicht alles Gute ist auch gleichzeitig zu haben“

Ohne Zusammenfassung     

Moving beyond the child care debate toward implications for social and political agendas

Early nonmaternal child care, for at least some portion of the week, is now the reality for most families in the United States. Ongoing debates surrounding what these changes mean for our society have focused on the possible negative consequences of extended nonmaternal care and the potential impact of such arrangements on children's later development. The NICHD-Early Child Care Research Network (ECCRN) Study of Early Child Care and Youth Development has made great strides toward addressing methodological limitations in previous research through a series of landmark examinations of child functioning from transition to school through 15 years-of-age. The primary goal of this commentary is to put the child care findings into a broader developmental, social, and political context by reframing the discussion to move beyond the current daycare debate and consider implications for social policy and research agendas. Given that daycare has become a normative social institution, we first consider what the research findings mean for the healthy social–emotional and cognitive growth of children. Second, we articulate the implications of the data for social interventions to improve those outcomes. Finally, we address the issue of what political changes are necessary to produce those improvements.     

Economically optimal markovian sampling policies for process monitoring

A variable delay process sampling procedure is considered in a Markov chain structure. The paper extends the basic sampling method given in Arnold (1970). Analytic properties of the process are developed for expected sample size and distribution of the sample size. A primary concern in the paper is the development of an objective function to enhance ability to select optimal sampling policies. The objective function involves cost due to sampling and protection costs for detecting undesirable conditions.     

Sample size requirements for rare or abundant attribute sampling

Two approximation procedures to determine required sample size for a Fixed width binomial confidence interval are given and compared to exact calculations as well as the normal and Poisson approximations. The approximation procedures are found to be quite simple but very accurate for estimating sample sizes for either rare or abundant attributes.     

Uniformly best estimation in linear regression when prior information is fuzzy

Modeling prior information as a fuzzy set and using Zadeh’s extension principle, a general approach is presented how to rate linear affine estimators in linear regression. This general approach is applied to fuzzy prior information sets given by ellipsoidal α-cuts. Here, in an important and meaningful subclass, a uniformly best linear affine estimator can be determined explicitly. Surprisingly, such a uniformly best linear affine estimator is optimal with respect to a corresponding relative squared error approach. Two illustrative special cases are discussed, where a generalized least squares estimator on the one hand and a general ridge or Kuks–Olman estimator on the other hand turn out to be uniformly best.