63 research outputs found

    Canonical correlation analysis based on information theory

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    AbstractIn this article, we propose a new canonical correlation method based on information theory. This method examines potential nonlinear relationships between p×1 vector Y-set and q×1 vector X-set. It finds canonical coefficient vectors a and b by maximizing a more general measure, the mutual information, between aTX and bTY. We use a permutation test to determine the pairs of the new canonical correlation variates, which requires no specific distributions for X and Y as long as one can estimate the densities of aTX and bTY nonparametrically. Examples illustrating the new method are presented

    Social Preferences, Beliefs, and the Dynamics of Free Riding in Public Good Experiments

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    We provide a test of the role of social preferences and beliefs in voluntary cooperation and its decline. We elicit individuals’ cooperation preferences in one experiment and use them – as well as subjects’ elicited beliefs – to explain contributions to a public good played repeatedly. We find substantial heterogeneity in people’s preferences. With simulation methods based on this data, we show that the decline of cooperation can be driven by the fact that most people have a preference to contribute less than others, rather than by their changing beliefs of others’ contribution over time. Universal free riding is very likely despite the fact that most people are not selfish.public goods experiments, social preferences, conditional cooperation, free riding

    Computers and Intuition

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    Algorithms and the Foundations of Software technolog

    Public goods and ethnic divisions

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    The authors present a model that links heterogeneity of preferences across ethnic groups in a city to the amount and type of public good the city supplies. Results show that the shares of spending on productive public goods - education, roads, sewers, and trash pickup _ in U.S. cities (metro areas/urban counties) are inversely related to the city's (metro area's/county's) ethnic fragmentation, even after controlling for other socioeconomic and demographic determinants. They conclude that the ethnic conflict is an important determinant of local public finances. In cities where ethnic groups are polarized, and where politicians have ethnic constituencies, the share of spending that goes to public goods is low. Their results are driven mainly by how white-majority cities react to varying minority-groups sizes. Voters choose lower public goods when a significant fraction of tax revenues collected from one ethnic group is used to provide public goods shared with other ethnic groups.Public Sector Economics&Finance,Environmental Economics&Policies,Economic Theory&Research,Decentralization,Public Health Promotion,Inequality,Environmental Economics&Policies,Public Sector Economics&Finance,Economic Theory&Research,Economic Stabilization

    Restaurant quality measurement based on marketing factors - the managersʹ perspective

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