A Matching Prior for the Shape Parameter of the Skew‐Normal Distribution

Abstract. This paper deals with the issue of performing a default Bayesian analysis on the shape parameter of the skew‐normal distribution. Our approach is based on a suitable pseudo‐likelihood function and a matching prior distribution for this parameter, when location (or regression) and scale parameters are unknown. This approach is important for both theoretical and practical reasons. From a theoretical perspective, it is shown that the proposed matching prior is proper thus inducing a proper posterior distribution for the shape parameter, also when the likelihood is monotone. From the practical perspective, the proposed approach has the advantages of avoiding the elicitation on the nuisance parameters and the computation of multidimensional integrals.     

THE CYCLICALITY OF PRICE‐COST MARGINS IN BANKING: AN EMPIRICAL ANALYSIS OF ITS DETERMINANTS

We study the determinants of the cyclical behavior of banks' price‐cost margins in the United States banking sector, using time series quarterly data for the period 1979–2005. We contribute to the literature by building an empirical model of the countercyclical behavior of these margins first documented by Aliaga‐Díaz and Olivero (2010a) . Doing so we are able to explore potential explanations for this behavior, and to show that margins are consistently countercyclical, even after controlling for the effects of credit risk and monetary policy. As a mechanism for the propagation of aggregate shocks, the countercyclical nature of margins in banking can provide additional support to stabilization policy. (JEL E32, E44, G21)     

新兴国家土地管理畅谈系列之六 印度尼西亚的土地行政管理

导读土地是动植物的栖息地,也是全人类进行农业生产活动的基本资源.近年来,国际上对土地保护越来越关注,把它视作人类生存的重要保障.历史教训告诉我们,一些文明古国由于没有保护好自己的土地而衰亡,一些发展中国家由于没有利用好自己的土地而落后.世界上绝大部分土地分布在众多的第三世界国家,中国作为一个发展中国家,在保护利用土地的过程中,不仅要学习借鉴发达国家的先进管理经验,也有必要把目光投向与自己历史、资源、国情相近的第三世界特别是新兴国家,取长补短、趋利避害.     

DOES RAISING THE SCHOOL LEAVING AGE REDUCE TEACHER EFFORT? EVIDENCE FROM A POLICY EXPERIMENT

This paper examines the effect of an increase in the compulsory school leaving age on a measure of high school teachers' effort. Differences‐in‐Differences estimates using count data methods demonstrate that the policy led to teachers increasing their hours of sickness absence by roughly 15%. This result implies that raising the compulsory school leaving age reduces teaching inputs, and hence schooling quality. A policy implication is that these laws should be coupled with measures to compensate teachers for the additional disutility. This also suggests that instrumental variable estimates of returns to education that utilize these changes for identification may be downwardly biased. (JEL J22, J38)