Roads and Diversification of Activities in Rural Areas: A Cameroon Case Study

This article uses the 2001 Cameroon National Household Survey (ECAM II) to analyse how road access affects labour activities. It shows that one‐size‐fits‐all road investments are irrelevant because the effects of roads are neither systematic nor uniform: the impacts of isolation on household well‐being through labour‐market opportunities are heterogeneous and depend on local characteristics. In view of the diversification of activities in household strategy, it finds that better road access increases the number of activities within those households that are most isolated.     

Return to Education and the Changing Role of Credentials in the Croatian Labor Market

The countries of Central and Eastern Europe experienced a rapid increase of return to education with the advent of the transition. We look at the dynamics of wage premiums in Croatia and estimate how much the return to education has changed between 1996 and 2004 on the basis of labor force survey data. We also extend the paper in order to address additional features of the wage structure, such as non-linearities in the return to education associated with attainment of credentials. We find that contrary to most transition countries, premiums for education in Croatia began to grow only after the mid 1990s. However, by 2004, they reached the levels of premiums found in other transition countries and advanced market economies, thus creating market incentives for investment in education. We also find that major part of this higher rate of return came through higher return to credentials.

Modelling stochastic volatility using generalized t distribution

In modelling financial return time series and time-varying volatility, the Gaussian and the Student-t distributions are widely used in stochastic volatility (SV) models. However, other distributions such as the Laplace distribution and generalized error distribution (GED) are also common in SV modelling. Therefore, this paper proposes the use of the generalized t (GT) distribution whose special cases are the Gaussian distribution, Student-t distribution, Laplace distribution and GED. Since the GT distribution is a member of the scale mixture of uniform (SMU) family of distribution, we handle the GT distribution via its SMU representation. We show this SMU form can substantially simplify the Gibbs sampler for Bayesian simulation-based computation and can provide a mean of identifying outliers. In an empirical study, we adopt a GT–SV model to fit the daily return of the exchange rate of Australian dollar to three other currencies and use the exchange rate to US dollar as a covariate. Model implementation relies on Bayesian Markov chain Monte Carlo algorithms using the WinBUGS package.