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Using US county-level data, we explore how economic diversity influenced economic stability over the period of the Great Recession. We find that higher diversity is associated with greater stability, but there are distinct spatial patterns and the relationship does not hold for much of the central part of the US. [ABSTRACT FROM PUBLISHER]

In this article, we formulate an information theoretic approach to information recovery for a network flow transportation problem as an ill-posed inverse problem and use nonparametric information theoretic methods to recover the unknown adaptive-intelligent behaviour traffic flows. We indicate how, in general, information theoretic methods may provide a solution to the ill-posed inverse information flow problems, when a function must be inferred from insufficient sample information. As an application, we examine a data set which comprised traffic volumes at Bell Labs. [ABSTRACT FROM PUBLISHER]

In this article, we develop the concept of histogram-valued data on value at risk for the classification of hedge fund risk. By using recent developments in data mining, it is a question of the classification of heterogeneous data in order to sort hedge funds by risk class. In practical terms, risk levels relative to measures of histogram-valued data on VaR are calculated as an aid to decision-making. The empirical study was carried out on 1023 HFR-based hedge funds, where we had estimated monthly ARMA-GARCH or asymmetric GARCH VaR and CVaR measures between 01 January 2003 and 31 December 2008. We identify two sub-periods: from 2003 to 2005, and from 2006 to 2008 in order to identify a recovery period after the 2001–2002 crisis and the impact of the 2007–2008 crisis. First, the symbolic approach allows us to construct the measures of histogram-valued data on VaR by optimizing the definition of categories. A symbolic principal component analysis shows that the indices coming from the VaR of the GARCH and asymmetrical GARCH are the most pertinent. Second, we apply a criterion of inter-class inertia and retain a partitioning of hedge funds into three classes by dynamicK-means cluster analysis. For each of our sub-periods and for each class, a risk level is defined on the basis of the categories of the most discriminating variable. [ABSTRACT FROM AUTHOR]

Variable selection is the issue of major concern in practical regressions. This note provides a simple and efficient method to examine the robustness of predictor variables in cross-country economic growth models. Our results confirm the general findings of Sala-i-Martinet al.(2004), indicating the importance of a number of same predictor variables. In addition, we also identify that some other variables are associated with economic growth. [ABSTRACT FROM PUBLISHER]