Is charity a homogeneous good?

In this paper I estimate income and price elasticities of donations to six different charitable causes to test the assumption that charity is a homogeneous good. In the US, charitable donations can be deducted from taxable income. This has long been recognized as producing a price, or taxprice, of giving equal to one minus the marginal tax rate faced by the donor. A substantial portion of the economic literature on giving has focused on estimating price and income elasticities of giving as the received wisdom suggests that a price elasticity greater than unity is indicative of the ‘treasury efficiency’ of the tax deductibility of charitable contributions, as the loss to tax revenue is less than the increase in giving. However, a major limitation of nearly all the previous attempts to identify such effects has been the implicit assumption that charity is a homogeneous good, meaning giving to one type of charity is a perfect substitute for any other and that the causespecific responsiveness of giving to changes in price and income is equal across those causes. If this assumption is violated, then estimates may be biased and policies designed to increase charitable contributions may be sub-optimal. Results suggest that the tax-price of giving only affects giving to religious organisations and that the income effect is invariant over charitable causes

Completeness of Inertial Modes of an Incompressible Non-Viscous Fluid in a Corotating Ellipsoid

Inertial modes are the eigenmodes of contained rotating fluids restored by the Coriolis force. When the fluid is incompressible, inviscid and contained in a rigid container, these modes satisfy Poincar\'e's equation that has the peculiarity of being hyperbolic with boundary conditions. Inertial modes are therefore solutions of an ill-posed boundary-value problem. In this paper we investigate the mathematical side of this problem. We first show that the Poincar\'e problem can be formulated in the Hilbert space of square-integrable functions, with no hypothesis on the continuity or the differentiability of velocity fields. We observe that with this formulation, the Poincar\'e operator is bounded and self-adjoint and as such, its spectrum is the union of the point spectrum (the set of eigenvalues) and the continuous spectrum only. When the fluid volume is an ellipsoid, we show that the inertial modes form a complete base of polynomial velocity fields for the square-integrable velocity fields defined over the ellipsoid and meeting the boundary conditions. If the ellipsoid is axisymmetric then the base can be identified with the set of Poincar\'e modes, first obtained by Bryan (1889), and completed with the geostrophic modes.Comment: 19 pages, 1 figure, to appear in Physical Review

Ban on castration of boars in the Netherlands: modeling economic consequences of options

As a result of social criticism on castration, the Netherlands intend to start fattening boars. The great obstacle to a ban on castration is the expected negative effect on international trade because of the fear of boar taint. Consumers’ perception of boar taint is investigated, and a summary is presented of the knowledge gained up to the present to reduce boar taint. Advantaged and drawbacks of several alternatives are assessed. An economic chain- and import/export model has been developed to estimate economic consequences. The total added value of the pig farmers' chain will significantly reduce, but there is much uncertainty of the estimation of market acceptance and prices. A further elaboration of the model is proposed, with an assessment of the optimal mix of alternative

Isotropic probability measures in infinite dimensional spaces: Inverse problems/prior information/stochastic inversion

Let R be the real numbers, R(n) the linear space of all real n-tuples, and R(infinity) the linear space of all infinite real sequences x = (x sub 1, x sub 2,...). Let P sub n :R(infinity) approaches R(n) be the projection operator with P sub n (x) = (x sub 1,...,x sub n). Let p(infinity) be a probability measure on the smallest sigma-ring of subsets of R(infinity) which includes all of the cylinder sets P sub n(-1) (B sub n), where B sub n is an arbitrary Borel subset of R(n). Let p sub n be the marginal distribution of p(infinity) on R(n), so p sub n(B sub n) = p(infinity)(P sub n to the -1(B sub n)) for each B sub n. A measure on R(n) is isotropic if it is invariant under all orthogonal transformations of R(n). All members of the set of all isotropic probability distributions on R(n) are described. The result calls into question both stochastic inversion and Bayesian inference, as currently used in many geophysical inverse problems

A Bayesian method to estimate the depth and the range of phonating sperm whales using a single hydrophone

Some bioacousticians have used a single hydrophone to calculate the depth/range of phonating diving animals. The standard one-hydrophone localization method uses multipath transmissions (direct path, sea surface, and seafloor reflections) of the animal phonations as a substitute for a vertical hydrophone array. The standard method requires three multipath transmissions per phonation. Bioacousticians who study foraging sperm whales usually do not have the required amount of multipath transmissions. However, they usually detect accurately (using shallow hydrophones towed by research vessels) direct path transmissions and sea surface reflections of sperm whale phonations (clicks). Sperm whales emit a few thousand clicks per foraging dive, therefore researchers have this number of direct path transmissions and this number of sea surface reflections per dive. The author describes a Bayesian method to combine the information contained in those acoustic data plus visual observations. The author’s tests using synthetic data show that the accurate estimation of the depth/range of sperm whales is possible using a single hydrophone and without using any seafloor reflections. This method could be used to study the behavior of sperm whales using a single hydrophone in any location no matter what the depth, the relief, or the constitution of the seafloor might be

Incentive Systems under ex post Moral Hazard to Control Outbreaks of Classical Swine Fever in the Netherlands

Livestock Production/Industries,

Reverse Engineering the Yield Curve

Prices of riskfree bonds in any arbitrage-free environment are governed by a pricing kernel: given a kernel, we can compute prices of bonds of any maturity we like. We use observed prices of multi-period bonds to estimate, in a log-linear theoretical setting, the pricing kernel that gave rise to them. The high-order dynamics of our estimated kernel help to explain why first-order, one-factor models of the term structure have had difficulty reconciling the shape of the yield curve with the persistence of the short rate. We use the estimated kernel to provide a new perspective on Hansen-Jagannathan bounds, the price of risk, and the pricing of bond options and futures.