New Zealand's Current Account Deficit: Analysis based on the Intertemporal Optimisation Approach

New Zealand's Current Account of the Balance of Payments has been persistently in deficit since the early 1970s and increased markedly during the late 1990s. Is this a cause for significant concern? This paper tackles this question by evaluating New Zealand's external solvency, the degree of optimality of the intertemporal consumption smoothing through its current account, and whether its international financial capital flows have been used in an optimal (consumption-smoothing) fashion. We carry out statistical tests in relation to external solvency. We also estimate a "benchmark" consumption-smoothing component for its current account based on an intertemporal optimisation model in order to carry out tests of the optimality of the size and volatility of the current account. We could not reject the hypotheses that New Zealand's current account was consistent with optimal smoothing, that the external solvency condition has been satisfied, and that there is "no excess volatility" in international financial capital flows.current account; intertemporal; consumption-smoothing; New Zealand

Evidence on the Incidence of Wage Posting, Wage Bargaining, and On-the-Job Search

Some workers bargain with prospective employers before accepting a job. Others face a posted wage as a take-it-or-leave-it oppor-tunity. Both modes of wage determination have generated large bodies of research. We surveyed a representative sample of U.S. workers to inquire about the wage determination process at the time they were hired into their current or most recent jobs. A third of the respondents reported bargaining over pay before ac-cepting their current jobs. Almost a third of workers had precise information about pay when they first met with their employers, a sign of wage posting. About 40 percent of workers were on-the-job searchers—they could have remained on their earlier jobs at the time they accepted their current jobs, indicating a more favorable bargaining position than is held by unemployed job-seekers. About half of all workers reported that their employers had learned their pay in their earlier jobs before making the offer that led to the current job

Evidence on the Determinants of the Choice between Wage Posting and Wage Bargaining

Some workers bargain with prospective employers before accepting a job. Others face a posted wage as a take-it-or-leave-it opportunity. Theories of wage formation point to substantial differences in labor-market equilibrium between bargained and posted wages. We surveyed a representative sample of U.S. workers to inquire about the wage determination process at the time they were hired into their current or most recent jobs. A third of the respondents reported bargaining over pay before accepting their current jobs. About a third of workers had precise information about pay when they first met with their employers, a sign of wage posting. About 40 percent of workers could have remained on their earlier jobs at the time they accepted their current jobs, indicating a more favorable bargaining position than is held by unemployed job-seekers. Our analysis of the distribution of wages shows that wage dispersion is higher among workers who bargained for their wages. Wages are higher among bargainers than non-bargainers, after adjusting for the differing compositions of the groups. Our results on wages give substantial support to the job-ladder model--workers who had the option to remain at their earlier jobs when they took their current jobs can earn higher wages than those without that option.

Wage Formation between Newly Hired Workers and Employers: Survey Evidence

Some workers bargain with prospective employers before accepting a job. Others could bargain, but find it undesirable, because their right to bargain has induced a sufficiently favorable offer, which they accept. Yet others perceive that they cannot bargain over pay; they regard the posted wage as a take-it-or-leave-it opportunity. Theories of wage formation point to substantial differences in labor-market equilibrium between bargained and posted wages. The fraction of workers hired away from existing jobs is another key determinant of equilibrium, because a worker with an existing job has a better outside option in bargaining than does an unemployed worker. Our survey measures the incidences of wage posting, bargaining, and on-the-job search. We find that about a third of workers had precise information about pay when they first met with their employers, a sign of wage posting. We find that another third bargained over pay before accepting their current jobs. And about 40 percent of workers could have remained on their earlier jobs at the time they accepted their current jobs.

Vitamin D Deficiency in Cystic Fibrosis

Cystic Fibrosis is the most common inherited genetic respiratory disorder in the Western World. Hypovitaminosis D is almost universal in CF patients, likely due to a combination of inadequate absorption, impaired metabolism, and lack of sun exposure. Inadequate levels are associated with the high prevalence of bone disease or osteoporosis in CF patients, which is associated with increased morbidity including fractures, kyphosis, and worsening pulmonary status. Treatment goals include regular monitoring 25 hydroxyvitamin D (25OHD) levels with aggressive treatment for those with levels <75 nmol/L (<30 ng/mL). More research is needed to determine optimal supplementation goals and strategies

Location, Location, Location Should Be Environment, Environment, Environment : A Market-Based Tool to Simplify Environmental Considerations in Residential Real Estate

The most important rule of real estate (location, location, location) should be upgraded to the three E’s: environment, environment, environment. What we value in real estate is the natural and human environment of a site and its structures. A home is typically an American’s most significant asset; thus, environmental issues should be of interest, primarily because the effects of environmental degradation can cause devaluation while simultaneously imposing substantial expenses (such as cleanup, health care, and relocation) on the population. The real costs of ignoring the environment are life-threatening health and safety issues, including lung damage and cancer resulting from radon exposure, (which the EPA estimates kills 20,000 people per year), and indoor air pollution (from Volatile Organic Compounds (VOCs), for example), the effects of mold and polluted water, and heart and lung conditions related to poor air quality, result in thousands of premature deaths each year. Environmental issues include both anthropogenic sources and naturally occurring phenomena. The problem is that, for some buyers, sellers and professionals, obtaining accurate data is difficult. Many know there are issues, but they are unable to get straight-forward, manageable information. Some do not want to know of the issues, and others are overwhelmed. Complicating the matter for everyone is the reality that the laws related to disclosure and duties to prevent or mitigate harm vary significantly by jurisdiction, creating unpredictable rights and duties that range from caveat emptor to duties of reasonable inquiry. Consistency between jurisdictions is of greater importance than ever because of the mobility of the population. Even with guidance and reports from the EPA, the tools available to the majority of individuals seeking to make this most significant purchase, the real estate market does not address the health and safety risks caused by environmental degradation. Given this deficit in information, we propose a voluntary checklist to alert consumers, owners, and professionals of environmental issues that can impose significant costs for health care, remediation, and property devaluation. Knowledge of the issues should reduce disputes, and, over time, consumers may demand properties that are safer, with economic variables that are better quantified. That in turn should encourage sellers, builders and producers to satisfy the expectations of the consuming public with greener and more sustainable housing

Skin Friction at Very High Reynolds Numbers in the National Transonic Facility

Skin friction coefficients were derived from measurements using standard measurement technologies on an axisymmetric cylinder in the NASA Langley National Transonic Facility (NTF) at Mach numbers from 0.2 to 0.85. The pressure gradient was nominally zero, the wall temperature was nominally adiabatic, and the ratio of boundary layer thickness to model diameter within the measurement region was 0.10 to 0.14, varying with distance along the model. Reynolds numbers based on momentum thicknesses ranged from 37,000 to 605,000. The measurements approximately doubled the range of available data for flat plate skin friction coefficients. Three different techniques were used to measure surface shear. The maximum error of Preston tube measurements was estimated to be 2.5 percent, while that of Clauser derived measurements was estimated to be approximately 5 percent. Direct measurements by skin friction balance proved to be subject to large errors and were not considered reliable

Encouraging Undergraduate-Faculty Collaborative Research

This paper is the result of the authors’ participation in a panel session at the Southwest Regional Meeting of the American Accounting Association in Houston, Texas in March 2008. Robert J. Walsh presented an earlier version of this manuscript at the Northeast Regional Meeting of the American Accounting Association in Newport, Rhode Island in November 2008. The authors wish to recognize the contributions of the program chairs, anonymous reviewers, and panel session participants for their helpful comments and suggestions