Modelling the sectoral allocation of labour in open economy models

© 2017 Canadian Economics Association Indivisible labour is not the only type of non-convexity affecting labour supply decisions. Another type of non-convexity arises in economies with sectors whenever individuals can work in only one sector at a time. I introduce this restriction into an open economy model with a tradeable and a non-tradeable sector, and I use lotteries to convexify the consumption possibilities set. This approach implies that the aggregate elasticity of labour supply becomes infinite. I compare the performance of the model with an analogous model in which the labour supply elasticity is finite. I find that there is a disconnect between the response of wages to monetary shocks and the open economy variables. The labour supply elasticity plays a more important role in the transmission of technology and government expenditure shocks to the real exchange rate and the terms of trade

On uniformization of Burnside's curve y2=x5−xy^2=x^5-x

Main objects of uniformization of the curve $y^2=x^5-x$ are studied: its Burnside's parametrization, corresponding Schwarz's equation, and accessory parameters. As a result we obtain the first examples of solvable Fuchsian equations on torus and exhibit number-theoretic integer $q$-series for uniformizing functions, relevant modular forms, and analytic series for holomorphic Abelian integrals. A conjecture of Whittaker for hyperelliptic curves and its hypergeometric reducibility are discussed. We also consider the conversion between Burnside's and Whittaker's uniformizations.Comment: Final version. LaTeX, 23 pages, 1 figure. The handbook for elliptic functions has been moved to arXiv:0808.348

Effects of habitat and livestock on nest productivity of the Asian houbara Chlamydotis macqueenii in Bukhara Province, Uzbekistan

To inform population support measures for the unsustainably hunted Asian houbara Chlamydotis macqueenii (IUCN Vulnerable) we examined potential habitat and land-use effects on nest productivity in the Kyzylkum Desert, Uzbekistan. We monitored 177 nests across different semi-arid shrub assemblages (clay-sand and salinity gradients) and a range of livestock densities (0–80 km-2). Nest success (mean 51.4%, 95% CI 42.4–60.4%) was similar across four years; predation caused 85% of those failures for which the cause was known, and only three nests were trampled by livestock. Nesting begins within a few weeks of arrival when food appears scarce, but later nests were more likely to fail owing to the emergence of a key predator, suggesting foraging conditions on wintering and passage sites may be important for nest productivity. Nest success was similar across three shrub assemblages and was unrelated to landscape rugosity, shrub frequency or livestock density, but was greater with taller mean shrub height (range 13–67 cm) within 50 m. Clutch size (mean = 3.2 eggs) and per-egg hatchability in successful nests (87.5%) did not differ with laying date, shrub assemblage or livestock density. We therefore found no evidence that livestock density reduced nest productivity across the range examined, while differing shrub assemblages appeared to offer similar habitat quality. Asian houbara appear well-adapted to a range of semi-desert habitats and tolerate moderate disturbance by pastoralism. No obvious in situ mitigation measures arise from these findings, leaving regulation and control as the key requirement to render hunting sustainable

A Feasibility Study of Quantifying Longitudinal Brain Changes in Herpes Simplex Virus (HSV) Encephalitis Using Magnetic Resonance Imaging (MRI) and Stereology.

OBJECTIVES: To assess whether it is feasible to quantify acute change in temporal lobe volume and total oedema volumes in herpes simplex virus (HSV) encephalitis as a preliminary to a trial of corticosteroid therapy. METHODS: The study analysed serially acquired magnetic resonance images (MRI), of patients with acute HSV encephalitis who had neuroimaging repeated within four weeks of the first scan. We performed volumetric measurements of the left and right temporal lobes and of cerebral oedema visible on T2 weighted Fluid Attenuated Inversion Recovery (FLAIR) images using stereology in conjunction with point counting. RESULTS: Temporal lobe volumes increased on average by 1.6% (standard deviation (SD 11%) in five patients who had not received corticosteroid therapy and decreased in two patients who had received corticosteroids by 8.5%. FLAIR hyperintensity volumes increased by 9% in patients not receiving treatment with corticosteroids and decreased by 29% in the two patients that had received corticosteroids. CONCLUSIONS: This study has shown it is feasible to quantify acute change in temporal lobe and total oedema volumes in HSV encephalitis and suggests a potential resolution of swelling in response to corticosteroid therapy. These techniques could be used as part of a randomized control trial to investigate the efficacy of corticosteroids for treating HSV encephalitis in conjunction with assessing clinical outcomes and could be of potential value in helping to predict the clinical outcomes of patients with HSV encephalitis

Implications of return predictability for consumption dynamics and asset pricing

Two broad classes of consumption dynamics—long-run risks and rare disasters—have proven successful in explaining the equity premium puzzle when used in conjunction with recursive preferences. We show that bounds a-là Gallant, Hansen, and Tauchen that restrict the volatility of the stochastic discount factor by conditioning on a set of return predictors constitute a useful tool to discriminate between these alternative dynamics. In particular, we document that models that rely on rare disasters meet comfortably the bounds independently of the forecasting horizon and the asset returns used to construct the bounds. However, the specific nature of disasters is a relevant characteristic at the 1-year horizon: disasters that unfold over multiple years are more successful in meeting the predictors-based bounds than one-period disasters. Instead, at the 5-year horizon, the sole presence of disasters—even if one-period and permanent—is sufficient for the model to satisfy the bounds. Finally, the bounds point to multiple volatility components in consumption as a promising dimension for long-run risk models

On the trace of the antipode and higher indicators

We introduce two kinds of gauge invariants for any finite-dimensional Hopf algebra H. When H is semisimple over C, these invariants are respectively, the trace of the map induced by the antipode on the endomorphism ring of a self-dual simple module, and the higher Frobenius-Schur indicators of the regular representation. We further study the values of these higher indicators in the context of complex semisimple quasi-Hopf algebras H. We prove that these indicators are non-negative provided the module category over H is modular, and that for a prime p, the p-th indicator is equal to 1 if, and only if, p is a factor of dim H. As an application, we show the existence of a non-trivial self-dual simple H-module with bounded dimension which is determined by the value of the second indicator.Comment: additional references, fixed some typos, minor additions including a questions and some remark

Measuring and explaining the willingness to pay for forest conservation: evidence from a survey experiment in Brazil

Recent research suggests that there is substantial public support (including willingness to pay) for forest conservation. Based on a nationwide survey experiment in Brazil (N = 2500) the largest and richest of the world's tropical developing countries, we shed new light on this issue. To what extent does the public in fact support forest conservation and what factors are influencing support levels? Unlike previous studies, our results show that the willingness to pay for tropical forest conservation in Brazil is rather low. Moreover, framing forest conservation in terms of biodiversity protection, which tends to create more local benefits, does not induce more support than framing conservation in terms of mitigating global climate change. The results also show that low levels of trust in public institutions have a strong negative impact on the public's willingness to pay for forest conservation, individually and/or via government spending. What could other (richer) countries do, in this context, to encourage forest conservation in Brazil and other tropical developing countries? One key issue is whether prospects of foreign funding for forest conservation are likely to crowd out or, conversely, enhance the motivation for domestic level conservation efforts. We find that prospects of foreign funding have no significant effect on willingness to pay for forest conservation. These findings have at least three policy implications, namely, that the Brazilian public's willingness to pay for forest conservation is very limited, that large-scale international funding is probably needed, and that such funding is unlikely to encourage more domestic effort, but is also unlikely to crowd out domestic efforts. Restoring public trust in the Brazilian government is key to increasing public support for forest conservation in Brazil

The Forward-Discount Puzzle in Central and Eastern Europe

This paper adds to evidence that the forward-discount puzzle is at least partly explained as a compensation for taking crash-risk. A number of Central and Eastern European exchange rates are compared. A Hidden Markov Model is used to identify two regimes for most of the exchange rates. These two regimes can be characterised as being either periods of stability or periods of instability. The level of international risk aversion and changes in US interest rates affect the probability of switching from one regime to the other. This model is then used to assess the way that these two factors affect the probability of a currency crisis. While the Czech Republic, Hungary and Bulgaria are very sensitive to international financial conditions, Poland and Romania are relatively immune. JEL classifications: C24, F31, F32; Key words: Exchange rates, uncovered interest parity, foreign exchange risk discount, hidden-Markov model, carry-trad