Heterogeneous Information and Appraisal Smoothing

This study examines the heterogeneous appraiser behavior and its implication on the traditional appraisal smoothing theory. We show that the partial adjustment model is consistent with the traditional appraisal smoothing argument only when all the appraisers choose the same smoothing technique. However, if appraiser behavior is heterogeneous and exhibits cross-sectional variation due to the difference in their access to, and interpretation of information, the model actually leads to a mixed outcome: The variance of the appraisal-based returns can be higher or lower than the variance of transaction-based return depending on the degree of such heterogeneity. Using data from the residential market, we find that, contrary to what the traditional appraisal smoothing theory would predict, appraisal-based indices may not suffer any “smoothing” bias. These findings suggest that the traditional appraisal smoothing theory, which fails to consider the heterogeneity of appraiser behaviors, exaggerates the effect of appraisal smoothing.

Growth and equity with endogenous human capital: Taiwan's economic miracle revisited

Economic development ; Human capital ; Taiwan

International Competitive Strategy Choices: Comparing Firms in China and India

The international business literature has yet to adequately explore international competitive strategy choices made by firms in developing countries. This study aims to address this gap by investigating the types of international competitive strategies followed by Chinese and Indian firms. Using firm-level primary data, the study analyzes factors that affect strategy choices and whether these factors differ between the two countries. The empirical results indicate that besides cost leadership strategies, firms have already developed international differentiation strategies and strategies combining cost and differentiation advantages (hybrid strategies). This confirms that firms from China and India are moving to international markets not only because of their low cost advantage but also because they are upgrading their capabilities to compete in the global market. The study highlights the fact that firms’ resources and capabilities influence firms’ propensity to choose a specific international competitive strategy and that the strategies can also differ in relation to the destination market. In general, the pursuit of well-articulated international competitive strategies (in particular differentiation strategy) is more common among Indian firms than among Chinese firms.

Reproductive Contributions of Foreign Wives in Taiwan: Similarities and Differences among Major Source Countries

In light of the entrenchment of sub-replacement fertility and the sharp increase in the stock of foreign wives in Taiwan in recent years, this research studies the reproductive contributions of Taiwan’s foreign wives from the top five source countries (China, Vietnam, Indonesia, Thailand, and the Philippines), based mainly on an application of a multinomial logit model to the micro data of the 2003 census of foreign wives. Our main findings are as follows. First, the overall fertility level of the foreign wives was probably somewhat higher than that of the native-born women and definitely lower than the replacement level. Second, among the five nationalities, those from China were much less reproductive than those from the other countries, mainly because the former were more prone to (1) having a rather old marriage age, (2) having a very large spousal age gap, (3) being separated or divorced, (4) having their current marriage being their second marriage, and (5) having a veteran as the husband. Third, among the four Southeast Asian nationalities, those from Indonesia and the Philippines were more reproductive than those from Thailand and Vietnam. This contrast was a muted reflection of the fertility difference in countries of origin. Fourth, for every nationality, marriage duration and marriage age were the most powerful explanatory factors and must be included in the model to avoid getting misleading estimated coefficients of other less powerful explanatory factors, whereas current age was a spurious factor that should not be used in the model. Fifth, in the context of marriage duration and marriage age, the explanatory factors with rather strong explanatory powers for at least one nationality included spousal age gap, marital status, remarriage status, co-residence with parent, and wife’s employment status. Sixth, the expected negative effect of wife’s educational attainment on lifetime fertility turned out to be either non-existent or modest. In particular, it had practically no effect on the probability of being childless. These findings implied that getting better educated foreign wives could increase the quality of their children with little or no reduction in the number of their children and in their probability of being childlessASEAN countries, China, international marriage, international migration, fertility, Taiwan

Reproductive contributions of Taiwan´s foreign wives from the top five source countries

This research studies the reproductive contributions of Taiwan’s foreign wives from China, Vietnam, Indonesia, Thailand, and the Philippines, based on applications of the multinomial logit model to the micro data of the 2003 Census of Foreign Spouses. Wives from China are found to have the lowest lifetime fertility of 1.4 children, mainly because they were more prone to marry later, have a very large spousal age gap, be separated or divorced, and have their current marriage be their second marriage. The effect of wife’s educational attainment on lifetime fertility turned out to be either modest or nonexistent.fertility, international marriage, international migration, reproductive contribution, Taiwan