Empirical Bayes rules and Gaussian processes

In this paper we study empirical Bayes (e.B.) rules from a viewpoint which has not yet got any attention in the literature. Since an e.B. estimator can be seen as an estimate of an unknown function, namely the true Bayes estimator, it is natural to consider e.B. estimators as stochastic processes. In this paper we make a first attempt in the direction of this approach. For a certain class of e.B. estimators for the continuous one-parameter exponential family, we investigate the global behaviour on finite intervals. It is shown that the difference between the e.B. and the true Bayes estimator can be represented as a certain type of Gaussian process plus a remainder which is uniformly of smaller order. Several applications of this result are given.     

A computational general equilibrium approach to the shadow pricing of trade restrictions and the adjustment of the exchange rate, with an application to Argentina

A general equilibrium model of an open economy in which there are ad valorem texes on domestic production and export activities, and import activities are subject to both tariffs and quotas is constructed. A domestic monetary asset, foreign exchange, and a corresponding nominal exchange rate are introduced and a numerical example of the model is constructed. The example is solved via the Scarf fixed point algorithm, first with taut quotas and then after having relaxed quotas. Various price indices are then used to guide programs designed to stabilize the trade balance against the quota liberalization. An empirical example, using Argentine data, is carried out to find the quota equivalent of a particular tariff.     

Agricultural policies and development: A socioeconomic investigation applied to Sri Lanka

This paper explores the interrelationship between agricultural policies and development by means of a dynamically recursive, computable general equilibrium model applied to Sri Lanka. The agricultural policies investigated include elimination of the food subsidy, land reform, and technical change in agriculture. The goals considered are the levels and growth rates of GNP and employment, the distribution of income, and the real income level of the lowest income group. The study provides a quantitative assessment of the association between policies and goals and identifies the key economic mechanisms in this association.     

Interest rate policies and inflation in interdependent economies: Recent policy dilemmas

This paper examines Federal Reserve Board policies that are premised on a negative short-run association of interest rate movements and the rate of inflation. In particular, econometric evidence is provided, supporting the view that tighter monetary policy appears to raise inflation rates in the short run. Conversely, it is demonstrated that easier monetary policy does not necessarily raise inflation rates in the short run. In the case of uncoordinated monetary restrictiveness, interest rate competition among major countries can produce higher inflation and lower growth than was originally intended.     

Distributional implications of changes in U.S. petroleum taxation

This article develops a methodology based on input-output relations for the evaluation of excise tax incidence. Since many excise taxes are levied on products that are used not only in final consumption but also as intermediate inputs in the production of other commodities, estimation of the tax burden by the conventional methodology of using direct final consumption may yield inadequate and perhaps misleading results. The input-output methodology developed in this article is applied to the case of the U.S. taxation of petroleum products and the empirical results are compared with similar ones obtained by the U.S. Congressional Budget Office.     

Meta-analysis of the impact of age structure on fertility

The paper uses a meta-analysis to comparatively evaluate the literature addressing the aggregate relationship between a populations age structure and fertility, as hypothesized by Richard Easterlin. The analysis is based on 334 estimated effects retrieved from 19 studies. The results suggest that several factors undermine the empirical support of the Easterlinian age structure/fertility link. These include the neglect of income, the use of relative cohort size to characterize the age structure, mis-specifications of the relevant age-cohorts, as well as the functional form and estimation technique. The results also suggest that the sample of published estimates possibly suffers from two types of publication bias, an under-representation of insignificant effects for small samples, and bias towards supportive effects in the earlier years followed by a bias towards negative effects as the literature matured.All correspondence to: Brigitte Waldorf. The authors appreciate the insightful comments and suggestions from two anonymous reviewers. The research also benefited from discussions with participants of the International Colloquium on Meta-analysis in Economics, Free University, Amsterdam, The Netherlands, December 2002. Finally, we would like to thank David Brown, Meagan Cahill, Angela Donelson, Calvin Farris, and Melaney Seacat from the University of Arizona for their research assistance. Responsible editor: Junsen Zhang.     

Prospects for trade in manufactured goods between industrial and developing countries, 1978–1990

This paper examines prospective changes in trade in manufactured goods between the industrial and the developing countries. Assuming the continuation of the policies followed by the industrial countries, it is projected that the manufactured imports of these countries from the developing countries would rise at an average annual rate of 12.5% between 1978 and 1980 while their manufactured exports would increase 9 7% a year. Nonetheless, the export surplus of the industrial countries in trade in manufactured goods would rise, contributing to the growth of industrial output. The expansion of their exports of manufactured goods would also contribute to economic growth in the developing countries, and both groups of countries would benefit from specialization according to comparative advantage.     

The value of experiential approaches to evaluation training

The training of evaluators is an important task—important because of the good that well trained evaluators can do and because of the mischief that poorly trained evaluators can cause. There is broad agreement on the importance of producing evaluators who are methodologically versatile and organizationally savvy. To accomplish these educational ends it is necessary to supplement classroom based instruction with experiential approaches. This paper describes a theoretical model of an effective experiential educational program for training evaluators, assesses two operating programs against the requirements of the model, and reports the results of a quasi-experimental evaluation of the effectiveness of the programs in producing important educational outcomes.     

Minimax subset selection for the multinomial distribution

Let (X₁,…,X_k) be a multinomial vector with unknown cell probabilities (p₁,?,p_k). A subset of the cells is to be selected in a way so that the cell associated with the smallest cell probability is included in the selected subset with a preassigned probability, P¹. Suppose the loss is measured by the size of the selected subset, S. Using linear programming techniques, selection rules can be constructed which are minimax with respect to S in the class of rules which satisfy the P¹-condition. In some situations, the rule constructed by this method is the rule proposed by Nagel (1970). Similar techniques also work for selection in terms of the largest cell probability.