Estimating utility functions using generalized maximum entropy

This paper estimates von Neumann and Morgenstern utility functions using the generalized maximum entropy (GME), applied to data obtained by utility elicitation methods. Given the statistical advantages of this approach, we provide a comparison of the performance of the GME estimator with ordinary least square (OLS) in a real data small sample setup. The results confirm the ones obtained for small samples through Monte Carlo simulations. The difference between the two estimators is small and it decreases as the width of the parameter support vector increases. Moreover, the GME estimator is more precise than the OLS one. Overall, the results suggest that GME is an interesting alternative to OLS in the estimation of utility functions when data are generated by utility elicitation methods.     

Childcare costs and the demand for children—evidence from a nationwide reform

Exploiting the exogenous variation in user fees caused by a Swedish childcare reform, we are able to identify the causal effect of childcare costs on fertility in a context in which childcare enrollment is almost universal, user fees are low, and labor force participation of mothers is very high. Anticipation of a reduction in childcare costs increased the number of first and higher-order births, but only seemed to affect the timing of second births. For families with many children we also find a marginally significant negative income effect on fertility.     

Financial Strain,Negative Interaction,Coping Styles,and Mental Health Among Low-Income Latinos

This study examines the relationship between financial strain and depressive symptoms in later life, and potential psychosocial mediators of this relationship. Drawing on a sample of 214 low-income Latino older adults, we used structural equation modeling to test the direct effect of chronic financial strain on depressive symptomatology, and the indirect effects via social support, negative interaction, and coping styles. Findings indicated that financial strain increased the level of depressive symptoms among this sample. Avoidance and approach-related coping styles emerged as independent determinants of depressive symptoms albeit in opposite directions; higher levels of avoidance coping was associated with higher levels of depressive symptoms. Contrary to previous findings on the general population, findings from the current study indicate that social support and negative interaction were not directly associated with depressive symptoms. Financial strain mediated the effect of sociocultural (nativity status, years of U.S. residence) and social status factors (age, education) on depressive symptoms. This study highlights the differential impact of financial strain and coping styles on psychological well-being, and the potential psychosocial targets of interventions for older adults with chronic health care conditions.     

Asymmetries in Information Processing in a Decision Theory Framework

Research in psychology suggests that some individuals are more sensitive to positive than to negative information while others are more sensitive to negative rather than positive information. I take these cognitive positive–negative asymmetries in information processing to a Bayesian decision-theory model and explore its consequences in terms of decisions and payoffs. I show that in monotone decision problems economic agents with more positive-responsive information structures are always better off, ex ante, when they face problems where payoffs are relatively more sensitive to the action chosen when the state of nature is favorable.      

Block and Basu bivariate lifetime distribution in the presence of cure fraction

This paper presents estimates for the parameters included in the Block and Basu bivariate lifetime distributions in the presence of covariates and cure fraction, applied to analyze survival data when some individuals may never experience the event of interest and two lifetimes are associated with each unit. A Bayesian procedure is used to get point and confidence intervals for the unknown parameters. Posterior summaries of interest are obtained using standard Markov Chain Monte Carlo methods in rjags package for R software. An illustration of the proposed methodology is given for a Diabetic Retinopathy Study data set.     

Structure,power, and discourses of development in Spanish NGOs

Because of its recent and rapid growth, the Spanish development apparatus provides an appropriate arena for studying nongovernmental organizations (NGOs). This article uses case studies of three NGOs—Manos Unidas, Intermón Oxfam, and Madre Coraje—to explore the tension between the internal and external dynamics that affect these organizations. Although powerful external forces promote structural isomorphism with its attendant bureaucratization and professionalization, several internal factors—youth, small size, certain ideologies, charismatic leaders, and privileging identification with the organization rather than expertise when recruiting participants—resist these homogenizing processes. DiMaggio and Powell's iron cage hypothesis (1983) therefore can be only partially confirmed. We suggest an intriguing, intimate connection between charisma and democracy.     

Fertility Decline in Czechoslovakia During the Last Two Centuries

The decline of fertility in Czechoslovakia on the territory of the Czech Socialist Republic began with a rise in the age at marriage; the decline of marital fertility began only after 1860. On the territory of the Slovak Socialist Republic marital fertility began to decline after 1900 without previous significant changes in the age at marriage. The differences between the demographic behaviour in the two parts of Czechoslovakia have persisted, although they are now gradually disappearing. There are other significant regional differences in the fertility decline caused by the overall process of economic and social development. The end of the demographic transition in the Czech Socialist Republic came during the 1930's and in the Slovak Socialist Republic during the 1960's.     

Are Educational Mismatches Responsible for the ‘Inequality Increasing Effect’ of Education?

This paper asks whether educational mismatches can account for the positive association between education and wage inequality found in the data. We use two different data sources, the European Community Household Panel and the Portuguese Labour Force Survey, and consider several types of mismatch, including overqualification, underqualification and skills mismatch. We test our hypothesis using two different measurement methods, the ‘statistical’ and the ‘subjective’ approach. The results are robust to the different choices and unambiguously show that the positive effect of education on wage inequality is not due to the prevalence of educational mismatches in the labour market.     

Testing the equality among distribution functions from independent and right censored samples via Cramér–von Mises criterion

The traditional Cramér–von Mises criterion is used in order to develop a test to compare the equality of the underlying lifetime distributions in the presence of independent censoring times. Its asymptotic distribution is proved and a resampling plan, which is valid for unbalanced data situations, is proposed. Its statistical power is studied and compared with commonly used linear rank tests by Monte Carlo simulations and a real data analysis is also considered. It is observed that the new test is clearly more powerful than the traditional ones when there exists no uniform dominance among involved distributions and in the presence of late differences. Its statistical power is also good in the other considered scenarios.     

Aggregating Political Dimensions: Of the Feasibility of Political Indicators

Political indicators are widely used in academic writing and decision making, but remain controversial. This paper discusses the problems related to the aggregation functions they use. Almost always, political indicators are aggregated by weighted averages or summations. The use of such functions is based on untenable assumptions (existence of homogeneous substitution rates, total compensation, and strict monotonicity). We show through concrete examples how these hidden assumptions are likely to produce results that are basically an artifact of ad hoc decisions, which additionally contradict very fundamental notions common to all credible political theories. We suggest, also through example, that some—necessarily partial—solutions are possible.