Tests and Confidence Intervals for an Extended Variance Component Using the Modified Likelihood Ratio Statistic

Abstract.  The large deviation modified likelihood ratio statistic is studied for testing a variance component equal to a specified value. Formulas are presented in the general balanced case, whereas in the unbalanced case only the one-way random effects model is studied. Simulation studies are presented, showing that the normal approximation to the large deviation modified likelihood ratio statistic gives confidence intervals for variance components with coverage probabilities very close to the nominal confidence coefficient.     

Funds versus stocks: a note on constraint classification

Even if the industrial production process forms a common frame of reference, the integration of the economist's concepts of production with those of the industrial production engineer may well present a vexed problem. Yet a basic requirement to engineers and economists alike ought to be a proper understanding of the interplay between engineering and economics in the area of industrial production. One solution to this problem may be to consider the production process in the unifying sense of a constraint satisfaction problem. This approach, which is not without merit in the history of science, has its foundation in an interdisciplinary constraint classification, developed originally in analytical mechanics. To illustrate this approach, we demonstrate in this note how the two economic notions of a fund of services and a stock of goods, are recast into two distinct constraint formulations of fundamental importance in the mathematical modelling of industrial production processes.     

Absolute Moments of Generalized Hyperbolic Distributions and Approximate Scaling of Normal Inverse Gaussian Lévy Processes

Abstract.  Expressions for (absolute) moments of generalized hyperbolic and normal inverse Gaussian (NIG) laws are given in terms of moments of the corresponding symmetric laws. For the (absolute) moments centred at the location parameter μ explicit expressions as series containing Bessel functions are provided. Furthermore, the derivatives of the logarithms of absolute μ -centred moments with respect to the logarithm of time are calculated explicitly for NIG Lévy processes. Computer implementation of the formulae obtained is briefly discussed. Finally, some further insight into the apparent scaling behaviour of NIG Lévy processes is gained.     

Does Where You Stand Depend on When You Were Born? The Impact of Generation on Post-Vietnam Foreign Policy Beliefs

American involvement in Vietnam and its attending domestic conflicthave generated a good deal of speculation about generationaldifferences and, more specifically, about the divergent "lessons"that Americans of different ages have drawn from the most salientforeign policy episodes they have experienced. The most visiblelines of cleavage have quite often been described as fallingbetween those whose views were shaped by the events leadingup to World War II, on the one hand, and, on the other, thosewhose outlook has been molded by the war in Southeast Asia.Using data from questionnaire responses of 2,282 American leadersin various occupations, this article assesses the validity ofthe "Munich generation versus Vietnam generation" thesis. Thefindings indicate that the most salient cleavages on foreignpolicy exist between occupations and within generation, ratherthan vice versa. The article concludes with a discussion ofthe prospects for early achievement of domestic consensus onissues of international politics and American foreign policy.