A computationally efficient method for bootstrapping systems of demand equations: A comparison to traditional techniques

The solution to a Liapunov matrix equation (LME) has been proposed to estimate the parameters of the demand equations derived from the Translog, the Almost Ideal Demand System and the Rotterdam demand models. When compared to traditional scemingly unrelated regression (SUR) methods the LME approach saves both computer time and space, and it provides parameter estimates that are less likely to suffer from round-off error. However, the LME method is difficult to implement without the use of specially written computer programs and, unlike traditional SUR methods, it does not automatically provide an estimate of the covariance of the parameters. This paper solves these two problems, the first by providing a simplified solution to the Liapunov matrix equation which can be written in a few lines of code in computer languages such as SAS PROC MATRIX/IML^TM or GAUSS^TM; the second, by bootstrapping the parameter covariance matrix.     

How Reassuring are Risk Comparisons to Pollution Standards and Emission Limits?

Pollutant emissions or ambient levels are often justified by reference to a higher benchmark, such as a public health standard or permit limit. However, does this risk comparison persuade the public audiences to whom it is frequently directed that such pollution levels are “acceptable”? A substantial proportion of people living within one mile of New Jersey's industrial facilities, perhaps as much as half, is indeed reassured by a comparison to such benchmarks. Positive attitudes toward discharge limits were linked to speaking English at home; positive attitudes toward drinking water standards were associated with seeing local benefits of industry as outweighing its risks, not speaking English, and relative youth (49 years old or less). Three scenarios involving drinking water contamination varied pre‐ and post‐treatment levels of the pollutant, though all post‐treatment levels were below the standard. In all cases great concern was expressed, with no significant differences across scenarios; net benefits, being white, and non‐English speaking were linked to lower concern. Relative trust seems a better explanation of different attitudes toward benchmark comparisons than varying levels of knowledge, but both hypotheses have drawbacks that merit further testing. These results imply that people with negative views of industry or government, the ones officials might most wish to reassure, will tend to doubt that regulatory benchmarks offer a valid risk comparison.     

Testing and Expanding a Model of Cognitive Processing of Risk Information

Scholars have begun to explore the role of modes of information processing and related audience characteristics in reactions to risky situations and risk information.((11, 12, 14, 17, 18, 20))"Information processing" concerns how people attend to and consider available information: systematic processors analyze messages and situations carefully, while heuristic processors skim and use cues (e.g., opinions of trusted reference groups) for quick judgments. This article uses scenarios about a semi-hypothetical industrial facility, in particular risk comparisons being considered by its manager for inclusion in a talk to the community, to explore the impact of information processing. Information insufficiency, self-assessed capacity to understand information, and information-seeking propensities are tested for potential effects on information processing about industrial risks by people living near industry. As well as testing established models, this article explores the additional explanatory value of involvement, relevance, and ability (Earle et al., 1990) and objective knowledge. Both existing model variables and new ones have significant effects on information seeking and information processing in this case, and partly confirm earlier results. Trumbo((17,18)) found that heuristic processors saw lower risk and systematic processors higher risk from suspected cancer clusters. In this study, reporting knowledge about local industrial risks as insufficient for one's purposes and self-reported avoidance of such information both raised ratings of the facility's risk and lowered ratings of its acceptability. Neither type of information processing significantly affected risk or acceptability judgments, but both increased risk ratings and heuristic processing had more effect than systematic processing. Positive ratings of risk comparisons' clarity and meaningfulness decreased risk and increased acceptability ratings, dominated other information variables in predictive power, and exceeded risk, benefit, and trust in contribution to acceptability judgments. Despite differences across studies in designs and variables, and the embryonic development of appropriate (self-reported) measures for use in field surveys, these results confirm the potential value of further research in how information seeking and processing affect risk beliefs and reactions to risk communications.     

Value Traits Reinforcement and Perceived Importance: Does Context Matter?

This study examines whether business students' perception of value trait reinforcement and importance differ by their university context. Student perceptions in coeducational religious, coeducational public and all-female religious schools were compared. The results of this study indicate areas of similarity and differences among students in regard to the context of school type and that reinforcement differences seemed to contribute to the differences. This revised version was published online in August 2006 with corrections to the Cover Date.     

Order statistics and the length of the best-n-of-(2n − 1) competition

The best-4-of-7 series is a popular playoff format to decide the champion in most North American professional sports. World Series (best-4-of-7) type competitions give rise to interesting probabilistic and statistical questions. We determine the expected length of this type of series by relating it to a problem involving order statistics. We also calculate the variance of the length and provide a simple formula for series of fair games. The method can be extended to derive higher order moments. This novel approach leads to new results that can be formulated in closed forms in terms of the distribution function of various binomial distributions. The emphasis is on establishing the connection to order statistics and obtaining closed forms. The relation to the negative binomial distribution as well as to the sooner waiting time problem in sequential testing is also discussed. We also consider the case when ties are allowed in the single games.     

Multiple Comparisons Controlling Expected Number of False Discoveries

In this paper, it is put forward that the task of designing a procedure for a set of multiple comparisons should be considered as a decision-making under uncertainty. Due to this motivation, for the problem of multiple comparisons, we considered another error rate to be controlled, called PFER (per-family error rate), which requests that the expected number of false rejections of a test procedure should be bounded no more than a prespecified level k. Although PFER was proposed by Tukey in 1953, there is not much studying about it so far. We first present Bonferroni procedure (single-step) and then build two step-up procedures with one having generic critical values and another using critical values in BH (Benjamini and Hochberg) type. These procedures are compared through simulations.     

Volunteering and the gender division of labour: A Franco-British comparison

Cross-national analyses of the gender division of labour usually focus on employment and domestic labour. This paper argues that formal and informal voluntary work should be included in such analyses. Using available secondary sources, the paper compares the gender division of voluntary work in Britain and France – two countries with well-documented differences and similarities concerning employment and domestic labour. The paper reveals that French women, with a higher commitment to the labour market and a slightly larger share of the burden of domestic labour, have a higher commitment to formal voluntary activity but engage less in informal volunteering than their British counterparts whereas French men, with shorter hours in employment and a slightly smaller contribution to domestic labour, undertake more formal and informal voluntary work than their British counterparts. In France, men consistently undertake more voluntary work than women whilst in Britain, there is a degree of gender equality in formal voluntary work but women undertake significantly more informal voluntary work than men. The paper explains the differences and similarities found by considering the role of the state and social policy, the question of ‘time availability’, and the question of what motivates individuals to undertake voluntary work.     

Surgical audit: statistical lessons from Nightingale and Codman

There is a long history of interest in examining and comparing surgical outcomes. The 'epidemiological' approach was initiated by Florence Nightingale in her suggestion for uniform surgical statistics, and she clearly predicted the problems that are associated with collecting, analysing and interpreting such data. Unfortunately those responsible for implementing and reporting her scheme appeared not to have shared her insight. The contrasting 'clinical' approach was championed by Ernest Codman in his search for full and honest appraisals of surgical errors. Once again, despite initial enthusiasm, others had great difficulty in following his example, although we discuss a recent instance of a reflective analysis of an individual surgeon's performance. We conclude by suggesting that a synthesis between these approaches is appropriate, but we follow others in warning of the inevitable extra-statistical difficulties that will arise.     

Implications of Excessive Precision for Risk Comparisons: Lessons from the Past Four Decades

This article reviews five published "second-order" risk comparisons from the past four decades that implied precise understanding, and hence clear relationships or orderings, of the underlying risks. "Second order" here refers to efforts that extract information from original sources with the goal of relating diverse findings. All five of these publications have frequently been cited in the peer-reviewed literature and/or in risk regulatory debate in the United States. Each is associated with at least one contemporaneous critique that the findings were excessively precise. None of these critiques suggested that an alternative relationship or ordering of the risks evaluated was more appropriate. Instead, each critique concluded that alternative, contradictory relationships were at least as plausible given data and/or analytical limitations. In one case, the critique led to the withdrawal of the original publication. The original findings have been propagated or used uncritically in subsequent literature, including political support for cost-effectiveness analysis. In other cases, the critiques have been used to discredit quantitative risk analysis in general, especially in the cases of nuclear power and cost-benefit analysis. Both of these outcomes are undesirable. Future risk comparisons should avoid excessive precision, include explicit discussion of uncertainty, and differentiate between plausible estimates and expected values.     

Some robust anova procedures under heteroscedasticity and nonnormality

In this paper we consider the problem of comparing several means under heteroscedasticity and nonnormality. By combining Huber‘s M-estimators with the Brown-Forsythe test, several robust procedures were developed; these procedures were compared through computer simulation studies with the Tan-Tabatabai procedure which was developed by combining Tiku's MML estimators with the Brown-Forsythe test. The numerical results indicate clearly that the Tan-Tabatabai procedure is considerably more powerful than tests based on Huber's M-estimators over a wide range of nonnormal distributions.