Estimation of heterogeneous preferences, with an application to demand for internet services

This paper presents a structural econometric framework for discrete and continuous consumer choices in which unobserved intrapersonal and interpersonal preference heterogeneity is modeled explicitly. It outlines a simulation-assisted estimation methodology applicable in this framework. This methodology is illustrated in an application to analyze data from the U.C. Berkeley Internet Demand Experiment

Seismic Risk Analysis of Revenue Losses, Gross Regional Product and transportation systems.

Natural threats like earthquakes, hurricanes or tsunamis have shown seri- ous impacts on communities. In the past, major earthquakes in the United States like Loma Prieta 1989, Northridge 1994, or recent events in Italy like L’Aquila 2009 or Emilia 2012 earthquake emphasized the importance of pre- paredness and awareness to reduce social impacts. Earthquakes impacted businesses and dramatically reduced the gross regional product. Seismic Hazard is traditionally assessed using Probabilistic Seismic Hazard Anal- ysis (PSHA). PSHA well represents the hazard at a specific location, but it’s unsatisfactory for spatially distributed systems. Scenario earthquakes overcome the problem representing the actual distribution of shaking over a spatially distributed system. The performance of distributed productive systems during the recovery process needs to be explored. Scenario earthquakes have been used to assess the risk in bridge networks and the social losses in terms of gross regional product reduction. The proposed method for scenario earthquakes has been applied to a real case study: Treviso, a city in the North East of Italy. The proposed method for scenario earthquakes requires three models: one representation of the sources (Italian Seismogenic Zonation 9), one attenuation relationship (Sa- betta and Pugliese 1996) and a model of the occurrence rate of magnitudes (Gutenberg Richter). A methodology has been proposed to reduce thou- sands of scenarios to a subset consistent with the hazard at each location. Earthquake scenarios, along with Mote Carlo method, have been used to simulate business damage. The response of business facilities to earthquake has been obtained from fragility curves for precast industrial building. Fur- thermore, from business damage the reduction of productivity has been simulated using economic data from the National statistical service and a proposed piecewise “loss of functionality model”. To simulate the economic process in the time domain, an innovative businesses recovery function has been proposed. The proposed method has been applied to generate scenarios earthquakes at the location of bridges and business areas. The proposed selection method- ology has been applied to reduce 8000 scenarios to a subset of 60. Subse- quently, these scenario earthquakes have been used to calculate three system performance parameters: the risk in transportation networks, the risk in terms of business damage and the losses of gross regional product. A novel model for business recovery process has been tested. The proposed model has been used to represent the business recovery process and simulate the effects of government aids allocated for reconstruction. The proposed method has efficiently modeled the seismic hazard using scenario earthquakes. The scenario earthquakes presented have been used to assess possible consequences of earthquakes in seismic prone zones and to increase the preparedness. Scenario earthquakes have been used to sim- ulate the effects to economy of the impacted area; a significant Gross Regional Product reduction has been shown, up to 77% with an earthquake with 0.0003 probability of occurrence. The results showed that limited funds available after the disaster can be distributed in a more efficient way

Policy Analysis in the Health-Services Market: Accounting for Quality and Quantity

We provide a theoretical and empirical framework for evaluating the effects of policy reforms on physician labor supply. We argue that any policy evaluation must account for both the quality and the quantity of services provided. The introduction of quality into the analysis has implications for both the theoretical and empirical analysis of labor supply, and consequently policy evaluation. In particular, endogenous quality choices introduce non-linearities into the budget constraint since the marginal return to an hour of work depends on the quality of services provided. We illustrate by considering a particular example: the recent reform in compensation contracts for specialist physicians in the province of Quebec (Canada). Prior to 1999, most Quebec specialist physicians were paid fee-for-service contracts; they received a piece rate for each clinical service provided. In 1999, the government introduced a mixed remuneration system, under which physicians received a base (half-daily or daily) wage, independent of services provided, and a reduced fee-for-service. Moreover, the government allowed physicians to choose their contract. We derive theoretical results for the effect of the reform on the quantity and quality of services supplied by analyzing "local" prices and virtual income. We propose discretizing the choice set as an empirical approach to policy evaluation in the presence of non-linear budget constraints.Health production, Quality of health services, Discretized models

Policy Analysis in the health-services market: accounting for quality and quantity

We provide a theoretical and empirical framework for evaluating the eects of policy reforms on physician labor supply. We argue that any policy evaluation must account for both the quality and the quantity of services provided. The introduction of quality into the analysis has implications for both the theoretical and empirical analysis of labor supply, and consequently policy evaluation. In particular, endogenous quality choices introduce non- linearities into the budget constraint since the marginal return to an hour of work depends on the quality of services provided. We illustrate by considering a particular example: the recent reform in compensation contracts for specialist physicians in the province of Quebec (Canada). Prior to 1999, most Quebec specialist physicians were paid fee-for-service con- tracts; they received a piece rate for each clinical service provided. In 1999, the government introduced a mixed remuneration system, under which physicians received a base (half-daily or daily) wage, independent of services provided, and a reduced fee-for-service. Moreover, the government allowed physicians to choose their contract. We derive theoretical results for the eect of the reform on the quantity and quality of services supplied by analyzing "local" prices and virtual income. We propose discretizing the choice set as an empirical approach to policy evaluation in the presence of non-linear budget constraints.Health production, Quality of health services, Discretized models

Estimating Workforce Development Needs for High-Speed Rail in California, Research Report 11-16

This study provides an assessment of the job creation and attendant education and training needs associated with the creation of the California High-Speed Rail (CHSR) network, scheduled to begin construction in September 2012. Given the high profile of national and state commitment to the project, a comprehensive analysis that discusses the education, training, and related needs created during the build out of the CHSR network is necessary. This needs assessment is achieved by means of: 1) analyzing current high-speed rail specific challenges pertaining to 220mph trains; 2) using a more accurate and robust “bottom-up” approach to estimate the labor, education, skills, and knowledge needed to complete the CHSR network; and 3) assessing the current capacity of railroad-specific training and education in the state of California and the nation. Through these analyses, the study identifies the magnitude and attributes of the workforce development needs and challenges that lie ahead for California. The results of this research offer new insight into the training and education levels likely to be needed for the emergent high-speed rail workforce, including which types of workers and professionals are needed over the life of the project (by project phase), and their anticipated educational level. Results indicates that although the education attained by the design engineers of the system signifies the most advanced levels of education in the workforce, this group is comparatively small over the life of the project. Secondly, this report identifies vast training needs for the construction workforce and higher education needs for a managerial construction workforce. Finally, the report identifies an extremely limited existing capacity for training and educating the high-speed rail workforce in both California and in the U.S. generally

Human resource management practices and organizational performance. The mediator role of immaterial satisfaction in Italian Social Cooperatives

The paper deals with the mediating role of immaterial satisfaction between substantive human resources (HR) features and organizational performance. We address this relationship in the Italian social service sector using a survey dataset that includes 4134 workers and 320 not-for-profit social cooperatives. The obtained results show that human resource management (HRM) practices influence immaterial satisfaction and, satisfaction positively impacts on firm performance. However, the impact of the different HRM practices is not the same. In this sense, worker involvement and workload pressure have a positive impact on firm performance; but task autonomy or collaborative teamwork do not have impact on organizational performance

Modeling Corner Solutions with Panel Data: Application to Industrial Energy Demand in France

This paper is providing an initial empirical application of Lee and Pitt's approach to the problem of corner solutions with panel data. This approach deals with corner solutions in a manner consistent with behavioral theory. Furthermore it allows the use of flexible form cost functions and general error structure. In this model energy demand, at industrial plant level, is the result of a discrete choice of type of energy to consume and a continuous choice to define the demand level. The econometric model is essentially an endogenous switching regime model which require the evaluation of multivariate probability integrals. We estimate the random effect model by maximum likelihood using a panel of industrial French plants. We verify that estimations predict globally well the model and we simulate the effects of prices variations and a CO2 tax on energy demand.

Non-unitary Models of Household Behavior: A Survey of the Literature

This article considers non-unitary models of household behavior. These models suppose explicitly that households consist of a number of different members with preferences that are different from each other. They can be split up into two principal categories: cooperative (or collective) models, in which the allocations are supposed to be Pareto efficient; and non-cooperative (or strategic) models which are based on the concept of Cournot-Nash equilibrium. The demand functions that describe household behavior in these models are subject to constraints that differ from the traditional Slutsky conditions. In addition, in a certain number of specific cases, the preferences of the different household members can be identified from observable behavior.households, collective model, strategic model, testability, identification

Impacts of Export Tax of Cocoa Beans on Indonesian Economy.

In recent years, there is a significant decline of cocoa beans in terms of exports value and share after 2010. Several studies claimed that this downward trend was caused by the introduction of an export tax on cocoa beans in 2010. Nevertheless, there are limited studies on the impacts of decreasing cocoa beans exports to the Indonesian economy. Therefore, this study aimed to simulate the impacts of the imposition of export tax on cocoa beans to the economy as well as unemployment. Methodology of this study utilised the Input-Output Table. In particular, this study calculated the impacts of export tax on cocoa beans to the changes of output, primary inputs, and unemployment in several scenarios. The main result of this study was that at extreme scenario, where the cocoa beans sector\u27s export was eliminated, the impacts on the whole economy and unemployment were insignificant. Moreover, this study found that the impacts on value added such as decreasing of profit were relatively higher than decreasing ra te on the output and others value added such as salary and wages and indirect taxes. On the other hand, this study argued that even though the introduction of export tax effectively reduced raw cocoa beans exports, there was an increasing on the exports\u27 value on the down stream industries