Entry Costs and Stock Market Participation Over the Life Cycle

Several explanations for the observed limited stock market participation have been offered in the literature. One of the most promising one is the presence of market frictions mostly in the form of fixed entry and/or transaction costs. Empirical studies strongly point to a significant structural (state) dependence in the the stock market entry decision, which is consistent with costs of these types. However, the magnitude of these costs are not yet known. This paper focuses on fixed stock market entry costs. I set up a structural estimation procedure which involves solving and simulating a life cycle intertemporal portfolio choice model augmented with a fixed stock market entry cost. Important features of household portfolio data (from the PSID) are matched to their simulated counterparts. Utilizing a Simulated Minimum Distance estimator, I estimate the coefficient of relative risk aversion, the discount factor and the stock market entry cost. Given the equity premium and the calibrated income process, I estimate a one-time entry cost of approximately 2 percent of (annual) permanent income. My estimated model matches the zero median holding as well as the hump-shaped age-participation profile observed in the data.Entry costs, Stock market, Structural estimation

Involvement of fishermen children in fishing activities in Lake Chad region

Five fishing villages in Lake Chad Basin region of Borno State (Nigeria) were assessed for the roles of children in fishing activities in the area. The villages surveyed include: Bundaram, Yobe, Daba masara, Dumba and Doro. The results show that the children were largely between 12-18 years of age in the villages. Generally, the younger children (less than 12 years) participate in activities that require no technicality and little physical strength, while the older children (12 years and above) engage in skillful fabrication of gear and fishing activities. Some activities in the surveyed villages were gender specific. Such activities include fish processing (smoking) which is exclusive for female and few male children, who carry out preliminary cleaning of fish before any processing method is applied. 80% of the children in the five fishing villages claimed proper understanding of the techniques and procedure involved in most fishing activities. About 65% of the children sampled showed willingness to become full time fishermen while 22% were uncertain and claimed that they do not know what the future holds for them. 15% of them resolved to migrate to town so that they could live a city lif

An appraisal of the efficiency of fish marketing system in Lake Chad basin

Fish products from the Chad Basin Lake play important role in meeting fish protein needs of Nigeria: they contribute not less than 25% of the total domestic fish supply and are significant in determining the availability of processed products and reduction of post-harvest losses. Processors, marketers and consumers are the major actors in appraising a marketing system. The results show that most sellers (4-7.5%) are within the age range of 30-39 years. Desires for more earnings led the markets to diversify their business activities to food stuff trading (37.5%), dried meat/livestock sales (37.5%), farming (12.5%), and transportation (12.5%). 65% of traders dispose off their products mostly in the mornings and evenings, 70% of the products are sold smoked while 50% of products are sold to individual consumers. Lake Chad fish products have a long distribution chain. There is also a high degree of buyers and sellers concentration in the primary fish markets and secondary (urban) markets. The products have a vertical regional movement with southern traders (82.5%) dominating the business, thus making the products popular all over Nigeria. Product differentiation with imperfect pricing policy is common occurrence. Lake Chad fish marketing system has distortions that impede its efficiency, recommendations are made on how to ensure a better efficiency of the syste

Three-dimensional stability of the solar tachocline

The three-dimensional, hydrodynamic stability of the solar tachocline is investigated based on a rotation profile as a function of both latitude and radius. By varying the amplitude of the latitudinal differential rotation, we find linear stability limits at various Reynolds numbers by numerical computations. We repeated the computations with different latitudinal and radial dependences of the angular velocity. The stability limits are all higher than those previously found from two-dimensional approximations and higher than the shear expected in the Sun. It is concluded that any part of the tachocline which is radiative is hydrodynamically stable against small perturbations.Comment: 6 pages, 8 figures, accepted by Astron. & Astrophy

Modelling Turkish Migration to Germany

This study develops a time series model of Turkish migration to Germany for the period 1963-2004 using the cointegration technique. A single cointegrating relation between the migration flow variable and the relative income ratio between Germany and Turkey, the unemployment rates in Germany and Turkey, and the trade variable, that captures intensity of bilateral economic cooperation, is found. By including the trade variable in the empirical migration function we investigate whether trade and migration are complements or substitutes: a question on which the theoretical literature does not provide a definite answer. Our results support the former view.Migration, trade, economic development, cointegration

Does foreign ownership matter for survival and growth? Dynamics of competition and foreign direct investment

Foreign direct investment has been considered for a long time as an important channel for transfer of technology to developing countries, and an important tool to generate jobs in those countries. Multinationals bring the factor that developing countries need most, capital, and therefore, they may also help to ease the unemployment pressure created by a rapidly growing (urban) population. It is shown by many researchers that foreign establishments are much more productive than domestic firms, but the empirical evidence regarding technology spillovers is not unambiguous. In this paper, we suggest that the impact of foreign direct investment on local industry hinges on the dynamics of foreign and domestic establishments, i.e., entry, selection (exit), and growth processes. Our analysis on foreign and domestic establishments in Turkish manufacturing industry for the period 1983-96 indicates that foreign establishments have a better performance level than domestic ones when they are first established in the local market, and have a higher survival probability. However, when the establishment characteristics are controlled for, domestic establishments have the same survival probability, but achieve lower rates of employment growth in the early post-entry period.Turkey, foreign direct investment, firm dynamics, entry, exit, growth

The Role of Remittances in Migration Decision: Evidence from Turkish Migration

In this study we analyse the impact of workers' remittances on the decision to migrate by means of cointegration analysis. In traditional migration theories, especially in human capital models, the decision to migrate is based upon comparison of expected future incomes in the sending and the receiving countries adjusted for the cost of migration. By contrast, the new economics of labour migration suggests that the migration decision is made jointly by the migrant and his family. One important element of this theory is the role of remittances that is absent in traditional migration theories. In this paper we test traditional migration theories against the new economics of labour migration. The study covers the Turkish migration to Germany over the period 1964-2004. A single cointegrating relation between the migration inflows and the relative income ratio between Germany and Turkey, the unemployment rates in Germany and Turkey, the trade intensity variable, and workers' remittances (relative to Turkish GDP) is found. We find workers' remittances to be significant in explaining migration both in the short- as well as in the long-run.Migration, trade, remittances, the new economic of migration, cointegration