Are People Ashamed of Paying with Food Stamps?

As is amply documented, there appears to be a large discrepancy between the marginal propensity to purchase food out of cash income and that out of food stamps. In this paper, we have examined both the formal and empirical bases of the claim that marginal welfare stigma explains this puzzling empirical regularity.SOCIAL WELFARE

Parametric vs. semi-parametric estimation of the male-female wage gap: An application to France

We use a semi-parametric method to decompose the difference in male and female wage densities into two parts–one explained by characteristics and one which is attributable to differences in returns to characteristics. We learn substantially more about the gender wage gap in France through this analysis that we do through parametric techniques which we also employ for comparative purposes. In particular, we find that there are no unexplained differences in male and female earnings distributions in the bottom fifth of the data. Occupation and part-time status are the most important determinants of the wage gap for all workers. In the semi-parametric estimates we find that education plays no role in the wage gap once we account for occupation and part-time status

Parametric vs. Semi-parametric Estimation of the Male-Female Wage Gap: An Application to France

We use a semi-parametric method to decompose the difference in male and female wage densities into two parts-one explained by characteristics and one which is attributable to differences in returns to characteristics. We demonstrate that one learns substantially more about the gender wage gap in France through this analysis than through standard parametric techniques. In particular, we find that there are no unexplained differences in male and female earning distributions in the bottom fifth of the data. Occupation and part-time status are the most important determinants of the wage gap for all workers. In the semi-parametric estimates we find that education plays no role in the wage gap once we account for occupation and part-time status.Gender pay gap, sticky floors, glass ceilings, semi-parametric estimation

Maverick Firms: An Exploratory Analysis of Mortgage Providers in Australia

This paper develops an empirical strategy to measure maverick-like behaviour. It applies the strategy to a dataset that contains interest rates charged by mortgage providers in Australia from January 2003 to October 2006. The Reserve Bank of Australia raised its cash rate five times in this period, which provides a natural setting to observe suppliers� responses. We examine suppliers� behaviour both in terms of the rates they charge and the time it takes them to change their rates as a response to a systemic increase in costs. These empirical observations suggest that the development of a theory for maverick behaviour be focused on dynamic, asymmetric models and informed by institutions and market dynamics that are relevant to the case at hand.

Welfare Transfers and Intra-Household Trickle Down: A Model with Evidence from the US Food Stamp Program

We examine the case for maintaining welfare and income redistribution programs even when their adverse general equilibrium effects reduce total earnings of poor households. Using a Cournot model of intra-household decision-making, we show that even if welfare cutbacks generate large increases in household income, these may still reduce the well-being of children and elderly dependants. Our model also explains the higher marginal propensity to consume food out of food stamps in the US, compared to that out of market income, noted in earlier empirical studies. We find evidence consistent with our argument in data from a US Food Stamp experiment.Food Stamp Program, Welfare Transfers, Cash-out Puzzle, Cournot Model, Intra-household Distribution, Engel Curves

Creation of spin-triplet Cooper pairs in the absence of magnetic ordering

In superconducting spintronics, it is essential to generate spin-triplet Cooper pairs on demand. Up to now, proposals to do so concentrate on hybrid structures in which a superconductor (SC) is combined with a magnetically ordered material (or an external magnetic field). We, instead, identify a novel way to create and isolate spin-triplet Cooper pairs in the absence of any magnetic ordering. This achievement is only possible because we drive a system with strong spin-orbit interaction--the Dirac surface states of a strong topological insulator (TI)--out of equilibrium. In particular, we consider a bipolar TI-SC-TI junction, where the electrochemical potentials in the outer leads differ in their overall sign. As a result, we find that nonlocal singlet pairing across the junction is completely suppressed for any excitation energy. Hence, this junction acts as a perfect spin triplet filter across the SC generating equal-spin Cooper pairs via crossed Andreev reflection.Comment: 12 pages, 8 figure

An Empirical Investigation of the Mergers Decision Process in Australia

In this paper we examine a database assembled from an Australian public register of 553 merger decisions taken between March 2004 and July 2008. Mergers may be accepted without public assessment, accepted in conjunction with publication of a Public Competition Assessment, or rejected. We estimate an ordered probit model, using these three possible outcomes, with the objective of gaining better insight into the regulator’s decision-making process. Our two major findings are: (i) the existence of entry barriers and the existence of undertakings are highly correlated with the regulator’s decision to closely scrutinise a merger proposal; and (ii) if we compare two decisions, one which does not mention entry barriers (or import competition) with a decision that does mention entry barriers (or import competition), then the latter is significantly more likely to be opposed than the former.

A Richer Understanding of Australia’s Productivity Performance in the 1990s: Improved estimates based upon firm-level panel data

Australia’s productivity performance is characterized by important differences across continuing firms, frequent entry of new firms, and substantial exit of firms which, for one reason or another, decide to cease production. These basic facts call into question the appropriateness of measuring productivity using an aggregate production function that is based upon a representative firm. This study relaxes the standard assumptions that industries are comprised of a set of homogeneous firms, the set of which are constant over time. Instead, we apply a semi-parametric production to continue production. The model controls for the relationship between productivity shocks and input choices and the inter-relationship between these and the decision to continue production. Using the Business Longitudinal Survey we estimate an improved set of production functions for twenty-five two-digit industries in Australia. We use these results to examine aggregate industry-level productivity performance. We use a new aggregation method in calculating these changes which allows us to separate productivity changes and output composition changes which sheds new light on industry-level productivity performance in Australia.Firm-level production function estimation, multi-factor productivity, semiparametric estimation, Australian economic performance

Testing Regulatory Consistency

We undertake an analysis of regulatory consistency using a database of publicly available regulatory decisions in Australia. We propose a simple exploratory model which allows us to test for regulatory consistency across jurisdictions and industries without detailed knowledge of the regulatory process. We compare two measures using our approach--the weighted average cost of capital and the proportion of firms’ revenue requirement claims disallowed by the regulator. We advocate use of the second measure, but our empirical results may be interpreted as indicating that a range of measures ought to be considered when assessing regulatory consistency.