What determines adult cognitive skills?: Impacts of preschooling, schooling, and post-schooling experiences in Guatemala

"Most investigations into the importance and determinants of adult cognitive skills assume that (1) they are produced primarily by schooling, and (2) schooling is statistically predetermined or exogenous. This study uses longitudinal data collected in Guatemala over 35 years to investigate production functions for adult cognitive skills—that is, reading-comprehension skills and nonverbal cognitive skills—as being dependent on behaviorally determined preschooling, schooling, and post-schooling experiences. We use an indicator of whether the child was stunted (child height-for-age Z-scoreHuman capital, cognitive skills, Stunting, work experience, Development, Education, Gender, Health and nutrition,

Impact of First Occupation on Health at Older Ages

Occupation is discussed as a social determinant of health. Occupation has received little attention in this light in the economics literature. We examine occupation in a life-course framework and use measures of first-occupation, initial health, and mother’s education. We contend that first occupation is a choice made relatively early in life that affects health outcomes at later ages. We examine first-occupation for two reasons: 1) there is growing evidence that early determinants affect later health and occupation has received little attention in this regard and 2) first occupation is predetermined in analysis of later health, which helps to address the issue of potential simultaneity. Using data from the Panel Study of Income Dynamics (PSID) we estimate the impact of initial occupation on two measures of health later in life: respondent-reported fair/poor health and ever suffering a heart attack. The PSID offers the opportunity to examine a lifecycle perspective as we can examine the impact of early occupation on later health while controlling for several predetermined conditions such as mother’s education and health in youth. Estimates suggest that first-occupation has a durable impact on later health, ceteris paribus, but that the impact varies by health measure and the set of control variables in regression specifications. Early choice of occupation could be a critical factor in successful aging and this information may pave the way to developing more effective workplace and public policies to improve health in older ages.

Inflation targeting as a monetary policy rule

The purpose of the paper is to survey and discuss inflation targeting in the context of monetary policy rules. The paper provides a general conceptual discussion of monetary policy rules, attempts to clarify the essential characteristics of inflation targeting, compares inflation targeting to the other monetary policy rules, and draws some conclusions for the monetary policy of the European system of Central Banks

Delayed Slater determinant update algorithms for high efficiency quantum Monte Carlo

Within ab initio Quantum Monte Carlo simulations, the leading numerical cost for large systems is the computation of the values of the Slater determinants in the trial wavefunction. Each Monte Carlo step requires finding the determinant of a dense matrix. This is most commonly iteratively evaluated using a rank-1 Sherman-Morrison updating scheme to avoid repeated explicit calculation of the inverse. The overall computational cost is therefore formally cubic in the number of electrons or matrix size. To improve the numerical efficiency of this procedure, we propose a novel multiple rank delayed update scheme. This strategy enables probability evaluation with application of accepted moves to the matrices delayed until after a predetermined number of moves, K. The accepted events are then applied to the matrices en bloc with enhanced arithmetic intensity and computational efficiency via matrix-matrix operations instead of matrix-vector operations. This procedure does not change the underlying Monte Carlo sampling or its statistical efficiency. For calculations on large systems and algorithms such as diffusion Monte Carlo where the acceptance ratio is high, order of magnitude improvements in the update time can be obtained on both multi-core CPUs and GPUs

FDI And Economic Growth. Evidence From Simultaneous Equation Models

This paper analyses whether foreign direct investments have an impact on the Romanian economic growth. By means of simultaneous equation methods we obtained evidence of the bi-directional connection between the two, meaning that incoming FDI stimulates economic growth and, in its turn, a higher GDP attracts FDI. Two methods were used in performing the analysis, one considering the relation between the share of FDI in GDP and economic growth in a five-equation system and the second considering the levels of FDI and GDP, respectively, in a two-equation system.foreign direct investment, economic growth, simultaneous equation models

Capital Structure Inertia and CEO Compensation

There is strong empirical evidence that firms do not always adjust their capital structure according to established capital structure theories. Rather, they follow a passive strategy such that capital structure changes are mainly driven by their stock returns. This paper investigates to what extent this behavioral inertia can be explained by the structure of executive compensation. Our data comprise US firms in the manufacturing industries over the years 1992 to 2000. We estimate a dynamic panel data model and find evidence for the hypothesis that stronger incentives schemes for CEOs lead to less capital structure inertiacapital structure; CEO compensation; dynamic panel data model

Bank-Specific, Industry-Specific and Macroeconomic Determinants of Bank Profitability

The aim of this study is to examine the effect of bank-specific, industry-specific and macroeconomic determinants of bank profitability, using an empirical framework that incorporates the traditional Structure-Conduct-Performance (SCP) hypothesis. To account for profit persistence, we apply a GMM technique to a panel of Greek banks that covers the period 1985-2001. The estimation results show that profitability persists to a moderate extent, indicating that departures from perfectly competitive market structures may not be that large. All bank-specific determinants, with the exception of size, affect bank profitability significantly in the anticipated way. However, no evidence is found in support of the SCP hypothesis. Finally, the business cycle has a positive, albeit asymmetric effect on bank profitability, being significant only in the upper phase of the cycle.Bank profitability; business cycles and profitability; dynamic panel data model

The Macroeconomic Consequences of Disasters

The aim of this study is to describe the macroeconomic dynamics of natural disasters and their determinants in a large sample of disaster events, the first such attempt we are aware of. Our research shows that natural disasters have a statistically observable adverse impact on the macroeconomy in the short-run. Not surprisingly, costlier events cause more pronounced slowdowns in production. Yet, interestingly, developing countries, and smaller economies, face much larger output declines following a disaster of similar relative magnitude than do developed countries or bigger economies. A close study of the determinants of these adverse macroeconomic output costs reveals several interesting patterns. Countries with a higher literacy rate, better institutions, higher per capita income, higher degree of openness to trade, and higher levels of government spending are better able to withstand the initial disaster shock and prevent further spillovers into the macroeconomy. These all suggest an increased ability to mobilize resources for reconstruction. Financial conditions also seem to be of importance; countries with more foreign exchange reserves, and higher levels of domestic credit, but with less-open capital accounts appear more robust and better able to endure natural disasters, with less adverse spillover into domestic production.Natural disasters, growth