A revised Tobit procedure for mitigating bias in the presence of non-zero censoring with an application to milk-market participation in the Ethiopian highlands

Fixed transactions costs that prohibit exchange engender bias in supply analysis due to censoring of the sample observations. The associated bias in conventional regression procedures applied to censored data and the construction of robust methods for mitigating bias have been preoccupations of applied economists since Tobin [Econometrica 26 (1958) 24]. This literature assumes that the true point of censoring in the data is zero and, when this is not the case, imparts a bias to parameter estimates of the censored regression model. We conjecture that this bias can be significant; affirm this from experiments; and suggest techniques for mitigating this bias using Bayesian procedures. The bias-mitigating procedures are based on modifications of the key step that facilitates Bayesian estimation of the censored regression model; are easy to implement; work well in both small and large samples; and lead to significantly improved inference in the censored regression model. These findings are important in light of the widespread use of the zero-censored Tobit regression and we investigate their consequences using data on milk-market participation in the Ethiopian highlands. (C) 2004 Elsevier B.V. All rights reserved.

Hedging effectiveness of total returns swaps: application to the Japanese market

The development of the real estate swap market offers many opportunities for investors to adjust the exposure of their portfolios to real estate. A number of OTC transactions have been observed in markets around the world. In this paper we examine the Japanese commercial real estate market from the point of view of an investor holding a portfolio of properties seeking to reduce the portfolio exposure to the real estate market by swapping an index of real estate for LIBOR. This paper explores the practicalities of hedging portfolios comprising small numbers of individual properties against an appropriate index. We use the returns from 74 properties owned by Japanese Real Estate Investment Trusts over the period up to September 2007. The paper also discusses and applies the appropriate stochastic processes required to model real estate returns in this application and presents alternative ways of reporting hedging effectiveness. We find that the development of the derivative does provide the capacity for hedging market risk but that the effectiveness of the hedge varies considerably over time. We explore the factors that cause this variability.

Tobit estiamtion with unknown point of censoring with an application to milk market participation in the Ethiopian highlands

Data augmentation is a powerful technique for estimating models with latent or missing data, but applications in agricultural economics have thus far been few. This paper showcases the technique in an application to data on milk market participation in the Ethiopian highlands. There, a key impediment to economic development is an apparently low rate of market participation. Consequently, economic interest centers on the “locations” of nonparticipants in relation to the market and their “reservation values” across covariates. These quantities are of policy interest because they provide measures of the additional inputs necessary in order for nonparticipants to enter the market. One quantity of primary interest is the minimum amount of surplus milk (the “minimum efficient scale of operations”) that the household must acquire before market participation becomes feasible. We estimate this quantity through routine application of data augmentation and Gibbs sampling applied to a random-censored Tobit regression. Incorporating random censoring affects markedly the marketable-surplus requirements of the household, but only slightly the covariates requirements estimates and, generally, leads to more plausible policy estimates than the estimates obtained from the zero-censored formulation

Passive MVC och MVVM designmönster i Android : En jämförelse av kodkomplexitet mellan Passive MVC och MVVM

Det mobila operativsystemet Android är idag ett ganska dominerande operativsystem på den mobila marknaden dels på grund av sin öppenhet men också på grund av att tillgängligheten är stor i och med både billiga och dyra telefoner finns att tillgå. Men idag har Android inget fördefinierat designmönster vilket leder till att varje utvecklare får bestämma själv vad som ska användas, vilket ibland kan leda till onödigt komplex kod i applikationerna som sen blir svårtestad och svårhanterlig. Detta arbete ämnar jämföra två designmönster, Passive Model View Controller (PMVC) och Model View View-Model (MVVM), för att se vilket designmönster som blir minst komplext med hjälp av att räkna fram mätvärden med hjälp av Cyclomatic Complexity Number (CCN). Studien är gjord utifrån arbetssättet Design & Creation och ämnar bidra med: kunskap om vilket mönster man bör välja, samt om CCN kan peka ut vilka delar i en applikation som kommer att ta mer eller mindre lång tid att testa. Under studiens gång tog vi även fram skillnader på om man anväder sig av den så kallade Single Responsibilyt Principle (SRP) eller inte. Detta för att se om separerade vyer gör någon skillnad i applikationernas komplexitet. I slutändan så visar studien på att komplexiteten i små applikationer är väldigt likvärdig, men att man även på små applikationer kan se skillnad på hur komplex koden är men också att kodkomplexitet på metodnivå kan ge riktlinjer för testfall.

Estimation of random coefficients logit demand models: an application to the Brazilian fixed income fund market

Estimation of demand and supply in differentiated products markets is a central issue in Empirical Industrial Organization and has been used to study the effects of taxes, merges, introduction of new goods, market power, among others. Logit and Random Coefficients Logit are examples of demand models used to study these effects. For the supply side it is generally supposed a Nash equilibrium in prices. This work presents a detailed discussion of these models of demand and supply as well as the procedure for estimation. Lastly, is made an application to the Brazilian fixed income fund market.