Resistance to metropolitan institutionality and planning in Chile

In this article, the authors review and analyse two key processes conducted by the Chilean state over the past 50 years. The first process consists of the development of specific planning instruments for the particular realities of metropolitan areas. The second process consists of the successive legislative attempts to work towards a definition of a new form of institutionality for cities with metropolitan profiles. These attempts have either failed or solely become bills of law. Both processes suggest a political and technical resistance throughout history, to substantially modify institutionality, as well as planning instruments, in order to make them more appropriate and consistent with the needs of growing metropolitan areas in Chile.     

Social Entrepreneur: Same or Different from the Rest?

VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations - A social business responds to social problems usually ignored by institutions, mobilizing resources and generating...     

When is n large enough? Looking for the right sample size to estimate proportions

The central limit theorem indicates that when the sample size goes to infinite, the sampling distribution of means tends to follow a normal distribution; it is the basis for the most usual confidence interval and sample size formulas. This study analyzes what sample size is large enough to assume that the distribution of the estimator of a proportion follows a Normal distribution. Also, we propose the use of a correction factor in sample size formulas to ensure a confidence level even when the central limit theorem does not apply for these distributions.     

Emerging wealth disparities after the storm: Evidence from Spain

We examine how the recession that started in December 2007 in the United States impacted wealth accumulation and inequality among Spanish households. We find that overall wealth dropped by 15 percent between 2008 and 2011, with losses concentrating among households in the mid and top wealth quintiles. The most hard hit wealth components were business assets, primary home equity, and durable assets, which declined by 40 percent, 23 percent and 19 percent, respectively. Wealth losses among all households were likely sustained by restricted access to credit. Nonetheless, in part due to their more diversified wealth portfolios, households in the top wealth quintile amassed a greater share of the country’s wealth during the recession. Consequently, wealth inequality, which receded during the expansionary years of 2002 through 2005, rose by 2008 and continued its trend in 2011.     

Welfare reform and immigrant fertility

Immigration policy is at the forefront of US policy discussions, and the use of welfare benefits by immigrants has been hotly debated. In 1996, Congress enacted welfare reform legislation, which imposed strict restrictions on welfare eligibility for noncitizens. However, a number of states restored access to welfare benefits to immigrants that had been cut out in the federal welfare reform law. Using data from the Current Population Survey, we examine whether immigrant women adjusted their childbearing in response to changes in the generosity of welfare benefits at the state-level. We find that noncitizen women reduced their fertility in response to cutbacks imposed by the legislation. Our findings, which prove robust to a number of identification and robustness checks, underscore how immigrants respond to state-level policies and provide insight into the potential impacts of comprehensive immigration reform, particularly the components related to the path to citizenship and access to public benefits.     

“The Motherhood Wage Gap for Women in the United States: The Importance of College and Fertility Delay”

One of the stylized facts from the past 30 years has been the declining rate of first births before age 30 for all women and the increase rate of first births after age 30 among women with four-year college degrees (Steven P. Martin, Demography, 37(4), 523–533, 2000). What are some of the factors behind womens decision to postpone their childbearing? We hypothesize that the wage difference often observed between like-educated mothers and non-mothers (Jane Waldfogel, Journal of Labor Economics, 16, 505–545, 1998a; Journal of Economic Perspectives 12(1) 137–156, 1998b) may be affected by the postponement of childbearing until after careers are fully established. Hence, we focus on college-educated women because they are typically more career-oriented than their non-college educated counterparts and also the group most often observed postponing maternity. We use individual-level data on women from the 1979 National Longitudinal Survey of Youth (NLSY79) in order to control for individual-level unobserved heterogeneity as well as human capital characteristics, such as actual work experience, in our empirical analysis. We estimate wage equations, first producing base-line results to compare to the existing literature. Then, we expand the basic wage equation model to address fundamental econometric issues and the education/fertility issue at hand. Our empirical findings are two-fold. First, we find that college-educated mothers do not experience a motherhood wage penalty at all. In fact, they enjoy a wage boost when compared to college-educated childless women. Second, fertility delay enhances this wage boost even further. Our results provide an explanation for the observed postponement of maternity for educated women. We argue that the wage boost experienced by college-educated mothers may be the result of their search for family–friendly work environments, which, in turn, yields job matches with more female-friendly firms offering greater opportunities for advancement.JEL Codes: J13 and J3     

Kernel density estimation for heavy-tailed distributions using the champernowne transformation

When estimating loss distributions in insurance, large and small losses are usually split because it is difficult to find a simple parametric model that fits all claim sizes. This approach involves determining the threshold level between large and small losses. In this article, a unified approach to the estimation of loss distributions is presented. We propose an estimator obtained by transforming the data set with a modification of the Champernowne cdf and then estimating the density of the transformed data by use of the classical kernel density estimator. We investigate the asymptotic bias and variance of the proposed estimator. In a simulation study, the proposed method shows a good performance. We also present two applications dealing with claims costs in insurance.     

Choice of the ridge factor from the correlation matrix determinant

Ridge regression is the alternative method to ordinary least squares, which is mostly applied when a multiple linear regression model presents a worrying degree of collinearity. A relevant topic in ridge regression is the selection of the ridge parameter, and different proposals have been presented in the scientific literature. Since the ridge estimator is biased, its estimation is normally based on the calculation of the mean square error (MSE) without considering (to the best of our knowledge) whether the proposed value for the ridge parameter really mitigates the collinearity. With this goal and different simulations, this paper proposes to estimate the ridge parameter from the determinant of the matrix of correlation of the data, which verifies that the variance inflation factor (VIF) is lower than the traditionally established threshold. The possible relation between the VIF and the determinant of the matrix of correlation is also analysed. Finally, the contribution is illustrated with three real examples.     

Scale versus specialization: banking strategies after the euro

The euro will transform the competitive landscape of European banking. This paper discusses some of the strategic effects of the euro on banks. In particular, it explores two questions: the rationale behind mergers and acquisitions and the universal banking model. The strategic analysis of the forces for change in banking leads to some conclusions: scale will not be the key success factor in European banking, the euro will increase the role of financial specialists in Europe and the universal banking model will face numerous challenges in the new context.