Negative Stereotypes and Willingness to Change Them: Testing Theories of Discrimination in South Africa

This paper proposes a new test to distinguish between the two leading theories of discrimination: preference versus information. Discrimination based on preferences occurs when people behave as if they refuse to change their stereotypes about the capabilities of discriminated individuals. Those who discriminate based on information are willing to alter their stereotypes. Using data from a quasi- experiment in South Africa, I test for discrimination against women and non-whites. The preliminary results show no discrimination against the former. In the case of racial discrimination, players’ stereotypes benefit non-whites instead of white opponents, but they are reluctant to change their impression for the former. However, they are willing to change their initial impression about white opponents. This has severe implications about the permanency of affirmative action policies.Theories of Discrimination, South Africa, Experiments, Bayesian Learning

Negative Stereotypes and Willingness to Change Them: Testing Theories of Discrimination in South Africa

This paper proposes a new test to distinguish between the two leading theories of discrimination: preference versus information. Discrimination based on preferences occurs when people behave as if they refuse to change their stereotypes about the capabilities of discriminated individuals. Those who discriminate based on information are willing to alter their stereotypes. Using data from a quasi-experiment in South Africa, I test for discrimination against women and non-whites. The preliminary results show no discrimination against the former. In the case of racial discrimination, players' stereotypes benefit non-whites instead of white opponents, but they are reluctant to change their impression for the former. However, they are willing to change their initial impression about white opponents. This has severe implications about the permanency of affirmative action policies.

ASYMMETRIC PRICE ADJUSTMENTS AND BEHAVIOR UNDER RISK: EVIDENCE FROM PERUVIAN AGRICULTURAL MARKETS

Most studies measuring asymmetric adjustments in vertical price transmissions fail to provide empirical support to explain such behavior. The literature invokes theoretical models, which derive asymmetric behavior based on variables that are difficult to measure such as oligopolies' coordination policies, market imperfections or menu costs. Therefore, with no empirical support explaining the asymmetries, these studies leave no room for policy implementation. In this paper I relate asymmetric price responses to a theory of behavior under risk driven by the perishable rate of the goods. Retailers of a perishable good facing an increment in the wholesale price may decide not to increase their prices for fear of being left with a spoiled product. Using three agricultural products with different perishable rates I reject the null hypothesis of symmetric adjustments in the most perishable product but fail to reject for the less perishable goods. The nonlinear responses are consistent with the prediction of the model. The test for asymmetries uses a threshold cointegration technique where the threshold level and the cointegration vector are estimated from the data instead of being imposed by the econometrician.Risk and Uncertainty,

ARE INTRA-HOUSEHOLD ALLOCATIONS EFFICIENT?

This paper describes two problems when testing the efficiency of intra-household allocations. First, using Monte Carlo simulations I show that the test proposed for efficiency in consumption has a high type-II error, leading to a false acceptance of the hypothesis. Second, I show it is possible that even under asymmetric information the hypothesis of efficiency, incorrectly, cannot be rejected. Finally, I propose a test to account for asymmetric of information.Research Methods/ Statistical Methods,

The Hospitality Industry\u27s lmpact On the State of Nevada: A Summary & Review

This article summarizes the economic, fiscal, and social impact findings of The Hospitality Industry\u27s Impact on the State of Nevada, a report issued in November1998 by the International Gaming Institute. This summary includes data on jobs, wages, output, taxes, crime, and other social issues. A brief discussion is included regarding the authors\u27 opinions of the state\u27s dependence on the hospitality industry and gaming taxes, as well as the potential ramifications of this dependence in a changing economic environment

STRUCTURAL CHANGE IN U.S. CHEESE MANUFACTURING: A TRANSLOG COST ANALYSIS OF A PANEL OF CHEESE PLANTS

Over the last 20 years the cheese manufacturing sector has become the most important market for U.S. farm milk. Using a plant-level dataset encompassing the 1972-1997 period we examine the production characteristics of this industry. Using the results obtained from our cost function we estimate a series of measures of input substitutability and scale economies.Agribusiness,