Negative Stereotypes and Willingness to Change Them: Testing Theories of Discrimination in South Africa

This paper proposes a new test to distinguish between the two leading theories of discrimination: preference versus information. Discrimination based on preferences occurs when people behave as if they refuse to change their stereotypes about the capabilities of discriminated individuals. Those who discriminate based on information are willing to alter their stereotypes. Using data from a quasi-experiment in South Africa, I test for discrimination against women and non-whites. The preliminary results show no discrimination against the former. In the case of racial discrimination, players' stereotypes benefit non-whites instead of white opponents, but they are reluctant to change their impression for the former. However, they are willing to change their initial impression about white opponents. This has severe implications about the permanency of affirmative action policies.

ASYMMETRIC PRICE ADJUSTMENTS AND BEHAVIOR UNDER RISK: EVIDENCE FROM PERUVIAN AGRICULTURAL MARKETS

Most studies measuring asymmetric adjustments in vertical price transmissions fail to provide empirical support to explain such behavior. The literature invokes theoretical models, which derive asymmetric behavior based on variables that are difficult to measure such as oligopolies' coordination policies, market imperfections or menu costs. Therefore, with no empirical support explaining the asymmetries, these studies leave no room for policy implementation. In this paper I relate asymmetric price responses to a theory of behavior under risk driven by the perishable rate of the goods. Retailers of a perishable good facing an increment in the wholesale price may decide not to increase their prices for fear of being left with a spoiled product. Using three agricultural products with different perishable rates I reject the null hypothesis of symmetric adjustments in the most perishable product but fail to reject for the less perishable goods. The nonlinear responses are consistent with the prediction of the model. The test for asymmetries uses a threshold cointegration technique where the threshold level and the cointegration vector are estimated from the data instead of being imposed by the econometrician.Risk and Uncertainty,

ARE INTRA-HOUSEHOLD ALLOCATIONS EFFICIENT?

This paper describes two problems when testing the efficiency of intra-household allocations. First, using Monte Carlo simulations I show that the test proposed for efficiency in consumption has a high type-II error, leading to a false acceptance of the hypothesis. Second, I show it is possible that even under asymmetric information the hypothesis of efficiency, incorrectly, cannot be rejected. Finally, I propose a test to account for asymmetric of information.Research Methods/ Statistical Methods,

STRUCTURAL CHANGE IN U.S. CHEESE MANUFACTURING: A TRANSLOG COST ANALYSIS OF A PANEL OF CHEESE PLANTS

Over the last 20 years the cheese manufacturing sector has become the most important market for U.S. farm milk. Using a plant-level dataset encompassing the 1972-1997 period we examine the production characteristics of this industry. Using the results obtained from our cost function we estimate a series of measures of input substitutability and scale economies.Agribusiness,

Nuclear Activity in Circumnuclear Ring Galaxies

We have analyzed the frequency and properties of the nuclear activity in a sample of galaxies with circumnuclear rings and spirals (CNRs). This sample was compared with a control sample of galaxies with very similar global properties but without circumnuclear rings. We discuss the relevance of the results in regard to the AGN feeding processes and present the following results: (i) bright companion galaxies seem not to be important for the appearance of CNRs, which appear to be more related to intrinsic properties of the host galaxies or to minor merger processes; (ii) the proportion of strong bars in galaxies with an AGN and a CNR is somewhat higher than the expected ratio of strongly barred AGN galaxies from the results of Ho and co-workers; (iii) the incidence of Seyfert activity coeval with CNRs is clearly larger than the rate expected from the morphological distribution of the host galaxies; (iv) the rate of Sy 2 to Sy 1 type galaxies with CNRs is about three times larger than the expected ratio for galaxies without CNRs and is opposite to that predicted by the geometric paradigm of the classical unified model for AGNs, although it does support the hy-pothesis that Sy 2 activity is linked to circumnuclear star formation. The possible selection effects of the sample are discussed, and we conclude that the detected trends are strong enough to justify high quality observations of as large as possible sets of galaxies with circumnuclear rings and their matched control samples.Comment: Submitted to International Journal of Astronomy and Astrophysic

Soliton structures in a molecular chain model with saturation

In the present work, we study, by means of a one-dimensional lattice model, the collective excitations corresponding to intra molecular ones of a chain like proteins. It is shown that such excitations are described by the Nonlinear Schrodinger equation with saturation. The solutions obtained here are the bell solitons, bubbles, kinks and crowdons. Since they belong to different sectors on the parametric space, the bubble condensation could give place to some important changes of face in this kind of nonlinear system. Additionally, it is shown that the limiting velocity of the solitons is the velocity of sound waves corresponding to longitudinal vibrations of molecules.Comment: 12 pages, 4 figure

Mean-Reverting Stochastic Processes, Evaluation of Forward Prices and Interest Rates

We consider mean-reverting stochastic processes and build self-consistent models for forward price dynamics and some applications in power industries. These models are built using the ideas and equations of stochastic differential geometry in order to close the system of equations for the forward prices and their volatility. Some analytical solutions are presented in the one factor case and for specific regular forward price/interest rates volatility. Those models will also play a role of initial conditions for a stochastic process describing forward price and interest rates volatility. Subsequently, the curved manifold of the internal space i.e. a discrete version of the bond term space (the space of bond maturing) is constructed. The dynamics of the point of this internal space that correspond to a portfolio of different bonds is studied. The analysis of the discount bond forward rate dynamics, for which we employed the Stratonovich approach, permitted us to calculate analytically the regular and the stochastic volatilities. We compare our results with those known from the literature.: Stochastic Differential Geometry, Mean-Reverting Stochastic Processes and Term Structure of Specific (Some) Economic/Finance Instruments

Quantifying Flexibility Real Options Calculus

We expose a real options theory as a tool for quantifying the value of the operating flexibility of real assets. Additionally, we have pointed out that this theory is an appropriated methodology for determining optimal operating policies, and provide an example of successful application of our approach to power industries, specifically to valuate the power plant of electricity. In particular by increasing the volatility of prices will eventually lead to higher assets values.real options, Black-Scholes Approach, Wiener processes, stochastic processes, Quantifying Flexibility, volatility