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Given a reward structure, this paper addresses an optimal replacement problem for complex multi-component systems. To maintain revenue stream resulting from system, the system is inspected according to a homogeneous Poisson process and certain actions are carried out in response to the system state. Decisions are based on a performance measure described by a Squared Bessel process. Given some assumption, we explore the inherent relation between the Squared Bessel process and an extended Gamma (EG) process. Since there are some flow of income and increasing costs due to inspections, the problem is to optimally stop processing the system and carrying out a renewal to maximize the reward functional. To this end, using the local characteristics of the EG process as a stopping criterion and the expected total discounted reward as a measure of policy, this paper aims at determining an optimal operating (stopping) time which truly balances both income and cost and so maximizes the expected discounted reward over a cycle. In support of the model a numerical example is provided to show feasibility of this programme in real application. Attention is restricted to perfect repair and inspection, but the paper provides the structure so that different scenarios can be explored. [ABSTRACT FROM PUBLISHER]

We use a standard single-agent model to conduct a simple consumption growth accounting exercise. Consumption growth is driven by news about current and expected future returns on the market portfolio. We impute the residual of consumption growth innovations that cannot be attributed to either news about financial asset returns or future labor income growth to news about expected future returns on human wealth, and we back out the implied human wealth and market return process. Innovations in current and future human wealth returns are negatively, correlated with innovations in current and future financial asset returns, regardless of the elasticity of intertemporal substitution. [ABSTRACT FROM AUTHOR]

We propose a new methodology to revise the international poverty line (IPL) after Ravallion et al. (2009) using the same database, but augmented with new variables to take into account social inclusion in the definition of poverty along the lines of Atkinson and Bourguignon (2001). We provide an estimation of the world income distribution and of the corresponding number of poor people in the developing world. Our revised IPL is based on an augmented two‐regime model estimated using a Bayesian approach, which allows us to take into account uncertainty when defining the reference group of countries where the IPL applies. The influence of weighting by population is discussed, as well as the IPL revision proposed in Deaton (2010). We also discuss the impact of using the new 2011 PPP and the recent IPL revision made by the World Bank. [ABSTRACT FROM AUTHOR]

This paper presents new estimates of wealth inequality in Sweden during 2000–2012, linking wealth register data up to 2007 and individually capitalized wealth based on income and property tax registers for the period thereafter when a repeal of the wealth tax stopped the collection of individual wealth statistics. We find that wealth inequality increased after 2007 and that more unequal bank holdings and housing appear to be important drivers. We also evaluate the performance of the capitalization method by contrasting its estimates and their dispersion with observed stocks in register data up to 2007. The goodness‐of‐fit varies tremendously across assets and we conclude that although capitalized wealth estimates may well approximate overall inequality levels and trends, they are highly sensitive to assumptions and the quality of the underlying data sources. [ABSTRACT FROM AUTHOR]

This paper produces comparable estimates of multidimensional inequality for the U.S., Germany, and Australia. Two alternative approaches with differing interpretations are employed. The first method projects all facets of welfare onto a single variable which is then analyzed using standard univariate techniques. The second approach establishes equivalent‐income distributions that would lead to an equalization of welfare, such that the difference between this counterfactual and the true income distribution can be measured. This difference is then interpreted as the degree of income redistribution required to offset welfare inequality. Using data on permanent incomes, health scores, years of education, and leisure times, we observe much higher levels of inequality in the U.S. than in Germany or Australia. Our results are highly statistically significant and hold over a large variety of weighting specifications. [ABSTRACT FROM AUTHOR]

Der Beitrag greift die vielfältige Kritik am Verfahren zur Bemessung der Regelbedarfe in der Grundsicherung auf und entwickelt eine Alternative. Das gegenwärtig angewandte Verfahren der Bemessung der Regelbedarfe ist ein Hybrid aus „Statistikmodell" und „Warenkorbmodell". Die vorgeschlagene Alternative gibt das „Warenkorb"-Element zugunsten eines direkten Vergleichs zwischen der wirtschaftlichen Situation der Bezieher von Grundsicherungsleistungen und der wirtschaftlichen Situation „mittlerer" Haushalte auf und betont den relativen Charakter der Bedarfs- oder Armutsgrenze. Dabei werden auch Elemente des EU-weit gebräuchlichen Verfahrens zur Bestimmung der „Armutsgefährdung" verwendet. Das vorgeschlagene Verfahren verdeutlicht, dass ein nahezu reines, in sich konsistentes Statistik-Modell praktisch umsetzbar ist. Die vorgeschlagene Alternative ist transparenter. Sie kommt mit deutlich weniger Annahmen aus als das herkömmliche Verfahren. Sie macht den Unterschied zwischen dem regelgebundenen Rechengang auf der Grundlage empirischer Ergebnisse und politischer, normativer Setzung bei der Bemessung des Niveaus der Grundsicherungsleistungen deutlicher. An Alternative Method for calculating Standard Requirements for the Universal Basic Income The article addresses the variety of criticism that has been directed at the method for calculating standard requirements for universal basic income and develops an alternative. The method currently used to calculate standard requirements is a hybrid of the statistical model and the „basket of goods" model. The alternative proposed abandons the „basket of goods" element in favour of a direct comparison between the economic situation of the recipients of universal basic income payments and the economic situation of „average" households and emphasises the relative nature of the poverty line and the threshold for welfare payments. It also uses elements of the method commonly used across the EU to determine the risk of poverty. The method proposed makes it clear that it is feasible to implement a coherent and virtually pure statistical model. This method is also more transparent. It relies on significantly fewer assumptions than the conventional method. It highlights the difference between rule-based calculation on the basis of empirical findings on the one hand, and political, normative setting of standards on the other hand, when calculating the level of universal basic income payments. JEL-Klassifizierung: H53, I30, I32, K38 [ABSTRACT FROM AUTHOR]

This study exploits unprecedented access to income data and a combination of newly developed statistical methods to evaluate income inequality in Egypt and test for potential top incomes biases. Income inequality in Egypt is found to be low by regional and world standards; top incomes are found to follow the Pareto distribution and do not show anomalies compared to surveys worldwide. Correcting for top incomes biases increases the Gini coefficient significantly. The magnitude of the upward correction varies between 1.1 and 4.1 percentage points depending on the choice of correction method and welfare measure. [ABSTRACT FROM AUTHOR]

In our recently proposed stochastic version of discretized kinetic theory, the exchange of wealth in a society is modelled through a large system of Langevin equations. The deterministic part of the equations is based on non-linear transition probabilities between income classes. The noise terms can be additive, multiplicative or mixed, both with white or Ornstein-Uhlenbeck spectrum. The most important measured correlations are those between Gini inequality index G and social mobility M, between total income and G, and between M and total income. We describe numerical results concerning these correlations and a quantity which gives average stochastic deviations from the equilibrium solutions in dependence on the noise amplitude. [ABSTRACT FROM AUTHOR]

The purpose of this paper was to explore the inequality-technical change relationship. Different from earlier studies, we aim to gauge the impact of technical change on the overall inequality, not just a particular component of inequality. This is achieved by establishing that the labour share of income is negatively correlated with overall inequality as indicated by the popular Gini coefficient and by modelling the labour share of income as a function of technical change. The empirical model of labour share of income is estimated using 1978-2012 provincial panel data from China. The main estimation results show that technical change in China had been mostly capital-biased. It contributed to the successive reductions in China's labour share of income and thus rapid rises in income inequality. [ABSTRACT FROM AUTHOR]

This paper evaluate the Mexican pension model supported by the law of the Mexican Social Security Institute (IMSS) of 1997, the study review the theoretical aspects of the pension model. The principal aspects of the retirement condition are analysis by a set of scenarios with a deterministic and stochastic approach, the variables uncertainty are modelated with a stochastic process, the analysis use the Monte Carlo simulation with the projection of thirty years. The evaluation shows the Mexican pension model satisfies the ideas of Modigliani in the life cycle theory and the precepts of the Overlapping Generations Model. One of the relevant result is that the pension model partially are self-sufficiency by the population, since an important part of the workers cannot save enough incomes to support their minimum pension and hold the liability to the State. Workers with a higher income who achieve savings that can guarantee a pension higher than a minimum wage should reduce the standard of living to adapt it to the level of income in the retirement phase that corresponds to approximately a fifth of the income that was had at the retirement time. [ABSTRACT FROM AUTHOR]

The article presents a method for valuation of stochastic future income with three barriers: a default barrier, a pre-default barrier and a refinancing barrier. Between the pre-default and default barriers, there is an ongoing cost of financial distress. In this framework, we derive state-dependent present value factors that can be applied to problems of valuation of firms, optimal financial structure and mitigation of agency conflicts between managers and investors. We illustrate our method with an analysis of the value of tax benefits of a dynamic debt policy. [ABSTRACT FROM PUBLISHER]

This paper firstly estimates the inflation expectation of households by improved probability method and then estimates the inflation expectation of experts by VAR(2) Model. Based on these two estimations, we find that expert expectation has a higher precision but it does not act in a rational way as household expectation acts. There is a bi-directional Granger Causality link between households’ expectation and actual inflation. But the expert expectation is only the Granger reason of actual inflation. There is an obvious feedback mechanism between the inflation of household and expert. This heterogeneity of inflation may be the result of optimal information acquisition during the formation of private sector’s expectation. [ABSTRACT FROM AUTHOR]

We investigate the effects of assuming a fully permanent income shock in a standard buffer-stock consumption model, when the true income process is only highly persistent. This assumption is computationally very advantageous, and thus often used, but might be problematic due to the implied misspecification. Across most parameterizations, and using the method of simulated moments, we find a relatively large estimation bias in preference parameters. For example, assuming a unit root process when the true AR(1) coefficient is 0.97, leads to an estimation bias of up to 30 percent in the constant relative risk aversion (CRRA) coefficient. If used for calibration, misspecified preferences could, for example, lead to a serious misjudgment in the value of social insurance mechanisms. Economic behavior, such as the marginal propensity to consume (MPC), of households simulated from the estimated (misspecified) model is, on the other hand, rather close to that from the correctly specified model. [ABSTRACT FROM AUTHOR]

Following Sir Anthony and Atkinson who started thinking about the insensitivity of the Gini index to income shares of the lower and the upper income groups, a generalization of the classical Gini index was introduced by Kakwani, Donaldson, Weymark and Yitzhaki which is sensitive to both high and low incomes. In this paper, the maximum entropy method is used to estimate the underlying true income share function based on the limited information of the generalized Gini index about the income shares of a population's percentiles. The income share function is estimated through maximizing both the Shannon entropy and the second-order entropy. In the end, through parametric bootstrap and analyzing a real dataset, the results are compared with the estimator of the share function, which is obtained based on the total information. In contrast to the classic Gini index, the derived share function based on the generalized Gini index provides more accurate approximations for income shares of the lower and the upper percentiles. [ABSTRACT FROM PUBLISHER]

At least since Thomas Piketty's best-selling Capital in the Twenty- First Century (2014, Cambridge, MA: The Belknap Press), percentile shares have become a popular approach for analyzing distributional inequalities. In their work on the development of top incomes, Piketty and collaborators typically report top-percentage shares, using varying percentages as thresholds (top 10%, top 1%, top 0.1%, etc.). However, analysis of percentile shares at other positions in the distribution may also be of interest. In this article, I present a new command, pshare, that estimates percentile shares from individual-level data and displays the results using histograms or stacked bar charts. [ABSTRACT FROM AUTHOR]

Self-reported income information particularly suffers from an intentional coarsening of the data, which is called heaping or rounding. If it does not occur completely at random – which is usually the case – heaping and rounding have detrimental effects on the results of statistical analysis. Conventional statistical methods do not consider this kind of reporting bias, and thus might produce invalid inference. We describe a novel statistical modeling approach that allows us to deal with self-reported heaped income data in an adequate and flexible way. We suggest modeling heaping mechanisms and the true underlying model in combination. To describe the true net income distribution, we use the zero-inflated log-normal distribution. Heaping points are identified from the data by applying a heuristic procedure comparing a hypothetical income distribution and the empirical one. To determine heaping behavior, we employ two distinct models: either we assume piecewise constant heaping probabilities, or heaping probabilities are considered to increase steadily with proximity to a heaping point. We validate our approach by some examples. To illustrate the capacity of the proposed method, we conduct a case study using income data from the German National Educational Panel Study. [ABSTRACT FROM PUBLISHER]

The innovative approach presented introduces a modified neoclassical growth model which includes a new bias of technological progress in a quasi-endogenous growth model in which part of labor is used in the research & development sector. The combination of a macroeconomic production function and a new progress function, plus the assumption that the output elasticity of capital is positively influenced by the size of the R&D sector, sheds new light on innovation and growth as well as income inequality: Thus there is a new approach for explaining Piketty's historical findings of a medium term rise of the capital income share in industrialized countries - both in the earlier and later part of the 19th century and in 1990-2010. A rising share of capital income can be explained within this approach by the increase in the output elasticity of capital, which has been developed in a new way, namely in the context of R&D. In the approach presented herein, the golden rule issues are also highlighted and it is shown that choosing the right size of the R&D sector will bring about maximum sustainable per capita consumption. While the basic new model is presented for the case of a closed economy, one could easily accommodate both trade and foreign direct investment and thereby get a better understanding of complex international investment, trade and FDI dynamics - including with respect to the envisaged Transatlantic Trade and Investment Partnership. [ABSTRACT FROM AUTHOR]

Welfarism, a position which for a long time enjoyed a hegemonic status in the field of normative economics, holds that the sole ethically relevant information for assessing social states of affairs pertains to individual utilities. Serge-Christophe Kolm presents the Equal-Labour Income Equalization (ELIE) model very explicitly and repeatedly as breaking with the still dominant tradition of welfarism. This paper explores the meaning of this distancing from welfarism found in the ELIE model. After having provided conceptual clarifications concerning both ELIE and welfarism, we discuss various opposing aspects of this model of income redistribution to welfarism. We show that the refusal of welfarism by the ELIE model does not depend mainly on its axiomatic features, but on its deontological perspective. [ABSTRACT FROM AUTHOR]

In a great deal of empirical work on distributional analysis, the only sorts of inequality measures employed are ' relative' ones. The present paper argues the case for a more plural approach to inequality measurement, in which both 'absolute' and 'intermediate' conceptualizations of inequality are admitted. In particular, it is suggested that there is a strong case for the employment of intermediate measures of inequality in assessing over time changes in inequality and, through that route, the inclusiveness or otherwise of the process of growth in per capita income. The purpose of the paper is two fold: exposition and persuasion. [ABSTRACT FROM AUTHOR]

Atkinson and Sandmo (1980) evaluated the taxation of saving by embedding the static optimal-tax framework within the two-period overlapping-generations model. Using this model, they collected a series of important results for optimal taxes on labour and capital income under a variety of assumptions regarding the instruments and objectives of the government, in particular the availability of national debt to spread burdens among different generations of individuals. With clear intuition and presentation, the study remains an important source for understanding the welfare implications of the taxation of saving. [ABSTRACT FROM AUTHOR]

This paper examines the catching-up (stochastic convergence in real per capita income) hypothesis for 52 African countries with respect to the USA. over the 1969-2011 period, using a highly flexible stationarity test. The empirical results show (i) that all African countries experienced at least one break, switching between catching-up and divergence paths during the sample period; (ii) that structural breaks tend to coincide with political instability, trade liberalisation policies and terms of trade shocks; (iii) that among the 52 African countries studied, only five lie on the catching-up path, while the remaining 47 diverge from the USA. Our results show that the economic performance of African countries fall far behind those of the USA and that the economic growth tragedy of Africa continues. [ABSTRACT FROM AUTHOR]

Finite mixtures of probability distributions may be successfully used in the modeling of probability distributions of incomes. These distributions are typically heavy tailed and positively skewed. This article deals with a problem of the determining the number of components in mixture modeling. This paper considers likelihood ratio-based testing of the null hypothesis of homogeneity in mixture models. The number of components is an important parameter in the applications of finite mixture models. [ABSTRACT FROM AUTHOR]

This article suggests multidimensional affluence measures for the top of the distribution. In contrast to commonly used top income shares, they allow the analysis of the extent, intensity and breadth of affluence in several dimensions within a common framework. We illustrate this by analysing the role of income and wealth as dimensions of multidimensional well-being in Germany and the US in 2007 as well as for the US over the period 1989–2007. We find distinct country differences with the country ranking depending on the measure. While in Germany wealth predominantly contributes to the intensity of affluence, income is more important in the US. [ABSTRACT FROM PUBLISHER]

This article aims to analyse gender wage differentials in Spain by taking into account the levels of educational attainment and by studying whether the educational mismatch affects the gender wage gap. Focusing on returns to education, evidence is found on the existence of educational mismatch and on its contribution to determine wages, with women suffering greater wage penalties that are associated with educational mismatch. Furthermore, although the gender wage gap is lower for individuals with low educational levels, we find that the part of this gap due to differences in returns is greater in this group. On the contrary, the gender gap is greater among highly-educated workers, but in this case most of the wage differentials are due to differences in productive characteristics. In any case, our results suggest that gender wage discrimination tends to be greater for those workers who show educational mismatch. [ABSTRACT FROM PUBLISHER]

This article examines the influence of macroeconomic factors on personal income distribution in developing countries using a parametric modelling approach. The technique is based on the selection and estimation of a theoretical parametric model (a Dagum distribution) which fits accurately to the empirical income distributions of the countries examined. The parameters of the model specifically related to inequality are subsequently used as dependent variables in econometric models in order to examine the impact that certain macroeconomic variables (GDP growth, inflation, employment and real interest rates) have on inequality. The results reveal that GDP growth, employment rate and real interest rate are the macroeconomic factors with greater impact in shaping personal income distribution in developing countries. [ABSTRACT FROM PUBLISHER]

This paper quantifies the contribution of exports to economic growth in developing countries. We apply recently developed panel cointegration methods which admit structural breaks to examine bivariate export-income relationships for a panel of 47 developing countries for annual data for 1970-2004. Results show that long-run relationships exist and there is bi-directional causality between exports and income; structural breaks occur in most country-specific relationships and most occur in the 1980s following the debt crisis of 1981-82; the income-export elasticity is 0.22 while the export-income elasticity is 1.13. Structural differences also exist in the relationships by broad income group and the impact of exports on income increases while that of income on exports falls as income increases. Export-promotion policies are not misplaced and the trade liberalisation policies advocated and sometimes imposed by the World Bank which aim to stimulate economic development seem justified but should by tailored to individual country needs. [ABSTRACT FROM AUTHOR]

We examine Becker's (1960) contention that children are "normal." For the cross-section of non-Hispanic white married couples in the United States, we show that when we restrict comparisons to similarly educated women living in similarly expensive locations, completed fertility is positively correlated with the husband's income. The empirical evidence is consistent with children being "normal." In an effort to show causal effects, we analyze the localized impact on fertility of the mid-1970s' increase in world energy prices, an exogenous shock that substantially increased men's incomes in the Appalachian coal-mining region. Empirical evidence for that population indicates that fertility increases with men's income. [ABSTRACT FROM AUTHOR]

The Indonesian government has pinned its hope for reducing unemployment on higher economic growth and increased labor market flexibility, such as lowering minimum wages. The estimated sectoral employment functions reveal that output growth rather than real wages is the major determinant of employment. Additionally, the real wage elasticity of employment in the manufacturing sector is very low. That is, a large cut in real wage will have marginal gains in employment, causing a decline in labor income. Therefore, the strategy of lowering real wage is likely to increase the incidence of the working poor as well as the incidence of vulnerability. [ABSTRACT FROM AUTHOR]

In 2003, after claims of dumping, the United States imposed heavy tariffs on Vietnamese catfish, which led to a collapse of imports. We use panel data to explore household responses in the catfish-producing Mekong delta between 2002 and 2004 and find that income growth was significantly slower among households relatively more involved in catfish farming in 2002. This is explained by a relative decline in both catfish income and revenues from other miscellaneous farm activities. Labor supply did not adjust, most likely because of off-farm employment limitations. Households more exposed to the shock reduced the share of investment assigned to catfish while substituting into agriculture. [ABSTRACT FROM AUTHOR]

Recent evidence has shown that entrants into self-employment are disproportionately drawn from the tails of the earnings and ability distributions. This observation is explained by a multitask model of occupational choice in which frictions in the labor market induce mismatches between firms and workers, and misassignment of workers to tasks. The model also yields distinctive predictions relating prior work histories to earnings and to the probability of entry into self-employment. These predictions are tested with the Korean Labor and Income Panel Study, from which we find considerable support for the model. [ABSTRACT FROM AUTHOR]

Among many papers of Professor Clive W. J. Granger, the one that strongly draws my attention is his work [7] using the skew-t model to analyze common factors in conditional distributions for bivariate time series. Different from many existing versions of theory-oriented skew-t models, the skew-t model that Professor Granger and his collaborators used was directly motivated by applications in analyzing economics data. This application-oriented skew-t model has discernible features on enabling model flexibility and keeping the practical standardizing conditions [10]. On the other hand, the skew-t model is in need of a proper statistical justification to solidify its theoretical foundation. In this paper, we initiate a new skew normal family that enhances the skew-t model in [10] and [7]. [ABSTRACT FROM AUTHOR]

The collective choice of public consumption expenditure is reconsidered when voters are socially mobile. In accordance with previous work on social mobility and political economics, the analysis concerns a class of mobility processes that induce mappings from initial income to expected future income that are monotonically increasing and concave. The paper abstracts from the explicitly redistributive role of government and concentrates on public consumption which is modeled as a classical public good. In equilibrium, provision is sensitive to the degree of social mobility, theoretically linking social mobility to public consumption. Further, empirical puzzles about the impact of voting franchise extensions on the growth of government spending are addressed within the context of social mobility. [ABSTRACT FROM AUTHOR]

The aim of this paper is to quantify the importance of institutions in economic growth and to identify the factors that determine institutional quality. For this purpose, we estimate a system of simultaneous equations with an income equation and another one of institutional quality and use a broad sample of countries with very different levels of development. The analysis is also carried out for three sub-samples of different income levels. In addition, a test of the robustness of the results to econometric techniques is performed. [ABSTRACT FROM AUTHOR]

In this study we compare the traditional OLS approach applied to the log-linear form of the gravity model with the Poisson Quasi Maximum Likelihood (PQML) estimation procedure applied to the non-linear multiplicative specification of the gravity model. We use the trade flows for all products, for all manufacturing products as well as for manufacturing products broken down by three-digit ISIC Rev.2 categories. We base our conclusions on the gravity model of Bergstrand (Rev Econ Stat 71(1):143--153, 1989) for disaggregate trade flows that allows us to investigate differences in factor-proportions and home-market effects at the industry level. In addition, we compare the effects of other explanatory variables such as exporter and importer total income, distance, preferential trade agreements, common border, historical ties, and common language on the volume of trade. Our main conclusion is that both estimation results as well as results of the regression mis-specification tests provide supporting evidence for the PQML estimation approach over the OLS estimation method. [ABSTRACT FROM AUTHOR]

This article seeks to more accurately estimate the size and distance of the effect of urban proximity on agricultural land values. The econometric model lets the size and distance of the effect of urban proximity on agricultural land values vary by population, real income, and time. The changes in the effect of urban proximity over time can be largely explained by population and income. Thus, there does not appear to be a shift in preferences toward living further from the city center. [ABSTRACT FROM AUTHOR]

US asset prices are modelled in the short- and long-run with the use of a seemingly unrelated system using monthly data over the time period, 1983–2004. Once the shocks of 1987, 1997 and post-“9·11” have been accounted for, then volatility only affects the consumption and inflation equations. In the long run excess returns and inflation are driven by consumption growth. Money growth impacts excess returns and inflation via consumption. Income is super exogenous implying that policy can be made conditional on this variable and that in the long run investors are primarily concerned with income growth. [Copyright &y& Elsevier]

This study examines the differences between three economic impact models: the capacity utilization model (CUM), Regional Economic Models, Inc (REMI) and the impact analysis for planning (IMPLAN) model with a view to providing insights into their applicability for hospitality and tourism educators and researchers. Four databases have been used to compare the results concerning total output, income and employment. The results were most dissimilar for the `income' variable. The difference in income lies in the fact that the three models estimated income in three different ways. The CUM estimated 'payroll', REMI estimated 'disposable personal income' and IMPLAN estimated 'value added'. Due to the different income measurements, REMI's income estimates were the highest, while the CUM's were the lowest. This study does not strive to recommend one economic impact model over another; however, it does examine the behaviour of the respective models concerning various data sets and describes the underlying characteristics of the models. [ABSTRACT FROM AUTHOR]

We develop and estimate a model of dynamic interactions in which commitment is limited and contracts are incomplete to explain the patterns of income and consumption growth in village economies of less developed countries. Households can insure each other through both formal contracts and informal agreements, that is, selfenforcing agreements specifying voluntary transfers. This theoretical setting nests the case of complete markets and the case where only informal agreements are available. We derive a system of nonlinear equations for income and consumption growth. A key prediction of our model is that both variables are affected by lagged consumption as a consequence of the interplay of formal and informal contracting possibilities. In a semiparametric setting, we prove identification, derive testable restrictions, and estimate the model with the use of data from Pakistani villages. Empirical results are consistent with the economic arguments. Incentive constraints due to self-enforcement bind with positive probability and formal contracts are used to reduce this probability. [ABSTRACT FROM AUTHOR]

RÉSUMÉ La modélisation statistique des distributions de revenus consiste entre autres en une procédure d'estimation, un test d'adéquation et de choix de modèle. Les paramètres d'un modèle donné sont typiquement estimés au moyen de procédures classiques telles que le maximum de vraisemblance et les moindres carrés. Malheureusement, les méthodes classiques sont très sensibles à de petites déviations dans le modèle ou à de mauvaises spécifications de modèles. Ces déviations peuvent complètement fausser les valeurs des estimateurs ainsi que des mesures d'inégalité correspondantes, engendrant de I'information erronnée sur la distribution des revenus dans un pays donné. Dans cet article, nous discutons I'utilisation de techniques robustes pour l'estimation des distributions de revenus. Ces méthodes se component au modèle comme les méthodes classiques mais par contre sont beaucoup moins influencées par des déviations. En plus, elles peuvent ětre appliquées à des problèmes d'estimation très généraux. [ABSTRACT FROM AUTHOR]

Data mining is the important field of computer science. Decision tree is important tool of data mining. All the tools of data mining is used to extract knowledge from huge amount of data base. In this paper after giving introduction of data mining, decision tree is discussed in detail, how it is constructed. The adult dataset is popular data set. In this there are more than thirty two thousand instances. Using Weka, an important data mining tool, the decision tree is constructed for country India in adult data set. Using that decision tree the knowledge can be extracted. [ABSTRACT FROM AUTHOR]

The article discusses the reconciliation of secular and cross-section consumption functions based on the example that each individual lives for two years and spends the first year working and the last year for retirement for three years. The author estimates that generation 0 who will born in year 0 will earn 100 units and spend 50 units. In year 1, generation 0 has no earnings while generation 1 has an average earnings of 60 units. The aggregate per capita spending in year 1 is 55 units.

This paper is focused on the test of Hall Permanent Hypothesis. Hall hypothesizes that economic agents have perfect information on their life time income. Since economic agents have perfect information on their life time income, they tend to hold their inter-temporal consumption to be equal. There are three ways to test the Hall hypothesis. The three ways are Dickey Fuller, Augmented Dickey Fuller, Cambell and Mankiw tests. The results are inconsistent each others. The finding tends to support that the interest rate transmission mechanism for inter-temporal consumption is not working in Indonesia. The interest rate in Indonesia tends to be higher than of the neighboring countries. The interest rate in Indonesia tends to be high because of the high inflation rate, and inefficient banking practice. It is interesting to plan further research on staggering high inflation and inefficient banking practice in Indonesia. [ABSTRACT FROM AUTHOR]

MODEL APPLICATION based on linear multi-criteria multiobject programming Enunciation. << On the two agricultural lots LI,L2 on intends to grow the cultures C1,C2,C3. (i) As for the dose of growing to one hectare, for these three cultures, the doses are: * for the culture C1 is: 200 kg/ha and respectively 150 kg/ha on the two lots L1,L2; * for the culture C2 is: 150 kg/ha and respectively 200 kg/ha on the two lots L1,L2; * for the culture C3 is: 100 kg/ha and respectively 250 kg/ha on the two lots L1,L2; (ii) As for the unit costs of cultivation (growing) for one hectare, they are: 500 RON/ha on the lot L1 respectively 400 RON/ha on the lot L2. (iii) Then, on has expected a growing income from one hectare of 800 RON/ha from the lot L1 respectively 750 RON/ha from the lot L2. Under the conditions listed above the following objectives are pursued: Goal 1: To obtain a total income of growing on the two lots of at least 30000 RON; Goal 2: To cultivate (grow) at least 6000 kg with the culture C1 ; Goal 3: To cultivate (grow) at least 6000 kg with the culture C2; Goal 4: To cultivate (grow) at least 5000 kg with the culture C3; Goal 5: Do not spend with the entire cultivation more than 12000 RON. They asked to draw up an optimal coverage of the lots, that is to faithfully fulfill the objectives <===> number of hectares x1,x2 on the two lots L1,L2 to be recommended to cultivate for the performance 1-5 objectives, including obtaining a total income maximum >>. Results interpretation (the optimal context- see also summary 1 and the corresponding pattern work) x1 = 20, x2 = 15 which means that are growing 20 hectares on the lot L1 and 15 hectares on the L2. d1- = 0, d1+ = 2000 which means that on obtain a total income greater with 2000 RON; d2- = 0, d2+ = 250 which means that are growing with 250 kg of culture C1 in addition; d3- = 0, d3+ = 0 which means that are growing exactly 6000 kg of culture C2; d4- = 0, d4+ = 750 which means that are growing with 750 kg of culture C3 in addition; d5- = 0, d5+ = 0 which means that on spends for entire cultivation a total sum of exactly 16000 RON (the estimated sum). [ABSTRACT FROM AUTHOR]