Philanthropy under the Microscope: A Cost-Benefit Analysis of Small Nonprofits Conducting Financial Statement Audits

External audits are conducted by Certified Public Accountants (CPAs) and ensure the reliability of financial reporting and internal controls of a given organization. Publicly traded corporations are required by the Securities and Exchange Commission (SEC) to conduct a yearly external audit. In addition, some large or government funded not-for-profits must produce audited financial statements upon request. If an organization is not required to conduct an audit, it may still choose to undergo an independent audit. Among those that may voluntarily conduct an audit are small nonprofit organizations. Due to the unique characteristics of small nonprofits, some elements of an external audit may not be feasible; however, there are still advantages provided by this independent evaluation. The decision to conduct or not conduct a voluntary external audit requires the analysis of the engagement’s costs and benefits. The intent of this paper is to present a cost-benefit analysis related to the observable costs, expenses and advantages of conducting an audit within a nonprofit organization

Entry, Exit and Investment-Specific Technical Change, Second Version

Using European data, this paper finds that (1) industry entry and exit rates are positively related to industry rates of investment-specific technical change (ISTC); (2) the sensitivity of industry entry and exit rates to cross-country differences in entry costs depends on industry rates of ISTC. The paper constructs a general equilibrium model in which the rate of ISTC varies across industries and new investment-specific technologies can be introduced by entrants or by incumbents. In the calibrated model, equilibrium behavior is consistent with stylized facts (1) and (2), provided the cost of technology adoption is increasing in the rate of ISTC.Entry, exit, turnover, investment-specific technical change, entry costs, vintage capital, embodied technical change, lumpy investment

Extensions of system signatures to dependent lifetimes: Explicit expressions and interpretations

The concept of system signature was introduced by Samaniego for systems whose components have i.i.d. lifetimes. We consider its extension to the continuous dependent case and give an explicit expression for this extension as a difference of weighted means of the structure function values. We then derive a formula for the computation of the coefficients of these weighted means in the special case of independent continuous lifetimes. Finally, we interpret this extended concept of signature through a natural least squares approximation problem

A Nash-Moser theorem for singular evolution equations. Application to the Serre and Green-Naghdi equations

We study the well-posedness of the initial value problem for a wide class of singular evolution equations. We prove a general well-posedness theorem under three assumptions easy to check: the first controls the singular part of the equation, the second the behavior of the nonlinearities, and the third one assumes that an energy estimate can be found for the linearized system. We allow losses of derivatives in this energy estimate and therefore construct a solution by a Nash-Moser iterative scheme. As an application to this general theorem, we prove the well-posedness of the Serre and Green-Naghdi equation and discuss the problem of their validity as asymptotic models for the water-waves equations

A Conversation with George G. Roussas

George G. Roussas was born in the city of Marmara in central Greece, on June 29, 1933. He received a B.A. with high honors in Mathematics from the University of Athens in 1956, and a Ph.D. in Statistics from the University of California, Berkeley, in 1964. In 1964--1966, he served as Assistant Professor of Mathematics at the California State University, San Jose, and he was a faculty member of the Department of Statistics at the University of Wisconsin, Madison, in 1966--1976, starting as an Assistant Professor in 1966, becoming a Professor in 1972. He was a Professor of Applied Mathematics and Director of the Laboratory of Applied Mathematics at the University of Patras, Greece, in 1972--1984. He was elected Dean of the School of Physical and Mathematical Sciences at the University of Patras in 1978, and Chancellor of the university in 1981. He served for about three years as Vice President-Academic Affairs of the then new University of Crete, Greece, in 1981--1985. In 1984, he was a Visiting Professor in the Intercollege Division of Statistics at the University of California, Davis, and he was appointed Professor, Associate Dean and Chair of the Graduate Group in Statistics in the same university in 1985; he served in the two administrative capacities in 1985--1999. He is an elected member of the International Statistical Institute since 1974, a Fellow of the Royal Statistical Society since 1975, a Fellow of the Institute of Mathematical Statistics since 1983, and a Fellow of the American Statistical Association since 1986. He served as a member of the Council of the Hellenic Mathematical Society, and as President of the Balkan Union of Mathematicians.Comment: Published in at http://dx.doi.org/10.1214/09-STS299A the Statistical Science (http://www.imstat.org/sts/) by the Institute of Mathematical Statistics (http://www.imstat.org

Does Employment Protection Inhibit Technical Diffusion?

I ask whether differences in labor market performance between the US and Europe can be attributed to an interaction between employment protection legislation (EPL) and an acceleration in the rate of capital-embodied technical change associated with the advent of information technologies. I find that EPL is associated with a slowing in the diffusion of new technologies. I also find that an acceleration in the rate of embodied technical change has a negligible effect on employment in an undistorted economy. In addition, in the presence of EPL, employment decreases in the long run after such a shockembodiment, vintage capital, dismissal costs, employment protection, information technology