FDI, Education, and Economic Growth: Quality Matters!

In this paper, we revisit the results from the influential study by Borensztein et al. (Journal of International Economics 45:115–135, 1998), which argues that inward foreign direct investment (FDI) promotes the economic growth in a less developed host country only when the host country obtains a threshold level of secondary schooling. Borensztein et al. (Journal of International Economics 45:115–135, 1998) only focus on the quantity of education. We take into consideration both the quantity and the quality of education. We adjust the original schooling data in Borensztein et al. (Journal of International Economics 45:115–135, 1998) by two quality of education indices and re-estimate their model. We find that the complementarity between inward FDI and schooling still exists, but the threshold level of schooling in our study is lower than the threshold calculated in Borensztein et al. (Journal of International Economics 45:115–135, 1998). Our results support the importance of education quality and suggest that with improved quality of education, it does not take as much quantity of schooling, as established in Borensztein et al. (Journal of International Economics 45:115–135, 1998), for inward FDI to have a positive impact on economic growth in the host country

Cosmology in nonrelativistic general covariant theory of gravity

Horava and Melby-Thompson recently proposed a new version of the Horava-Lifshitz theory of gravity, in which the spin-0 graviton is eliminated by introducing a Newtonian pre-potential $\phi$ and a local U(1) gauge field $A$. In this paper, we first derive the corresponding Hamiltonian, super-momentum constraints, the dynamical equations, and the equations for $\phi$ and $A$, in the presence of matter fields. Then, we apply the theory to cosmology, and obtain the modified Friedmann equation and the conservation law of energy, in addition to the equations for $\phi$ and $A$. When the spatial curvature is different from zero, terms behaving like dark radiation and stiff-fluid exist, from which, among other possibilities, bouncing universe can be constructed. We also study linear perturbations of the FRW universe with any given spatial curvature $k$, and derive the most general formulas for scalar perturbations. The vector and tensor perturbations are the same as those recently given by one of the present authors [A. Wang, Phys. Rev. D{\bf 82}, 124063 (2010)] in the setup of Sotiriou, Visser and Weinfurtner. Applying these formulas to the Minkowski background, we have shown explicitly that the scalar and vector perturbations of the metric indeed vanish, and the only remaining modes are the massless spin-2 gravitons.Comment: Revtex4, no figures. Gauge freedom was clarified and typos were corrected. Version to appear in Physical Reviews

Leisure and Happiness in the U.S.: Evidence from Survey Data

We study the relationship between leisure and happiness, controlling for income and other determinants. Using survey data for the United States in 2007, our results show that certain aspects of leisure, such as leisure activity satisfaction, have a significant impact on individual well-being whereas the amount of leisure time may not play an important role in affecting happiness

Learning Dynamics in Monetary Policy: The Robustness of an Aggressive Price Stabilizing Policy

This paper investigates the effect of an aggressive inflation stabilizing monetary policy on the ability of agents to reach a rational expectations equilibrium for inflation and output. Using an adaptive learning framework, we develop a model that combines a real wage contracting rigidity with an interest rate rule. We show that an AR(1) equilibrium requires more aggressive monetary policy to achieve both determinacy and learnability. This model and policy findings contrast with Bullard and Mitra’s [Determinacy, learnability and monetary policy inertia (2001); Journal of Monetary Economics 49 (2002) 1105] model (no inflation persistence) and policy findings (less aggressive policy). These results suggest that aggressive policy is robust in different model specifications

Leisure and Happiness: Evidence from International Survey Data

We study the statistical link between leisure and happiness. Using survey data from 33 countries in 2007, we find that (1) certain leisure activities, leisure’s role in self-fulfillment and social interaction, and leisure’s relation to work and other spheres of life are significantly linked to individual happiness; (2) the effect of leisure quantity is not as important as other aspects of leisure; and (3) some leisure activities can be negatively associated with happiness. Consistent with findings in previous studies, family income and individual demographic variables such as age and health condition are significantly associated with happiness. National unemployment and political stability also have robustly significant effects on happiness

Acoustic suspension system

An acoustic levitation system is described, with single acoustic source and a small reflector to stably levitate a small object while the object is processed as by coating or heating it. The system includes a concave acoustic source which has locations on opposite sides of its axis that vibrate towards and away from a focal point to generate a converging acoustic field. A small reflector is located near the focal point, and preferably slightly beyond it, to create an intense acoustic field that stably supports a small object near the reflector. The reflector is located about one-half wavelength from the focal point and is concavely curved to a radius of curvature (L) of about one-half the wavelength, to stably support an object one-quarter wavelength (N) from the reflector