We extend a recently developed generalized local polynomial estimator into a semiparametric smooth coefficient framework to estimate a generalized cost function. The advantage of the generalized ...local polynomial approach is that we can simultaneously choose the degree of polynomial for each continuous nonparametric regressor and the bandwidths via data-driven methods. We provide estimates of scope economies from the joint production of microloans and microdeposits for a dataset of Microfinance Institutions from over 50 countries. Our approach allows analysis on all Microfinance Institutions rather than only those offering just microloans. Moreover, the smooth coefficient estimator provides a general interface in which to account for both direct and indirect environmental factors. We find substantial scope economies in general, of about 10 % at the median, as well as evidence that economies of scope vary across the type of services and country in which the MFIs operate, suggesting key insights into policy prescriptions.
This paper analyzes the impact of Research and Development (R&D) on the productivity of China's high technology industry. In order to capture important differences in the effect of R&D on output that ...arise from geographic and socioeconomic differences across three major regions in China, we use a novel semiparametric approach that allows us to model heterogeneities across provinces and time. Using a unique provincial level panel dataset spanning the period 2000–2007, we find that the impact of R&D on output varies substantially in terms of magnitude and significance across different regions. Results show that the eastern region benefits the most from R&D investments, however it benefits the least from technical progress, while the western region benefits the least from R&D investments, but enjoys the highest benefits from technical progress. The central region benefits from R&D investments more than the western region and benefits from technical progress more than the eastern region. Our results suggest that R&D investments would significantly increase output in both the eastern and central regions, however technical progress in the central region may further compound the effects of R&D on output within the region.
► We estimate a production function using a smooth coefficient estimator. ► We model R&D as an environmental factor. ► The return to R&D is generally positive. ► The eastern region of China benefits the most from R&D investments. ► The western region benefits the most from technological progress.
We investigate the finite sample performance of the Abrevaya and Dahl (2008) test for coefficient heterogeneity for a correlated random effects 'mean' (CREM) panel quantile regression estimator. We ...assess size and power of the test over a range of sample sizes and panel dimensions. The test is undersized for small-to-moderate sample sizes and displays low power even with a high degree of heteroscedasticity. Size and power improve substantially in larger samples. Our results provide insight for applied researchers.
This article investigates how an organic fruit and vegetable farmer's choice to use direct‐to‐consumer market channels impacts his/her decision to be certified organic. First, we model the decision ...to be certified organic as a conditionally independent decision from the farmer's chosen market channels. Second, we estimate the probability of certifying organic as an endogenously determined marketing decision to the choice of market channels, and use a bivariate probit specification to model this decision. Empirical evidence indicates that the decision to certify is endogenous to the chosen market channels. We show that farmers selling direct to consumers are less likely to certify organic.
The goal of this article is to uncover more precise and unbiased estimates of the relationships between relationship satisfaction, a copreneurial business structure, and profit. Because of the ...suspected simultaneity between profit levels, the choice to be copreneurial and relationship satisfaction, a multivariate recursive probit is used to test for endogeneity between these variables. The results of the empirical analysis suggest that spouses self-select into a copreneurial business structure depending on the level of satisfaction they feel in their interpersonal relationships. Additionally, copreneurial businesses with high relationship satisfaction are more likely to have higher profit than if they were non-copreneurial.
This article assesses the effect of Hispanic clustering on Hispanic self-employment in the US and the extent to which endogenous social factors within a cluster may encourage Hispanics to start a ...business. We address key identification issues in the clustering literature by applying a series of robust econometric techniques to US census data. The study provides empirical evidence on the role of Hispanic clustering on Hispanic entrepreneurship. This article also tackles the constructs of Hispanic entrepreneurial heterogeneity and suggests the clustering of second-generation Hispanics as a potential indicator of the Hispanic entrepreneurial environment. The study derives insight on the economic implications of Hispanic clustering and its benefits and suggests policy recommendations to promote success among Hispanic entrepreneurs. We propose that generational differences across Hispanics is not merely an ethnic control variable, but rather an important factor for the design of strategies and incentives at the federal, state, and local level.
I use a semiparametric smooth coefficient model to estimate a generalization of the emissions convergence models derived from the green Solow model proposed by Brock and Taylor (J Econ Growth ...15:127–153,
2010
). Parametric estimates of simple homogeneous coefficient convergence models suggest that there may be heterogeneity in emissions convergence across different subsamples of observations. The semiparametric models confirm that there is heterogeneity across countries in coefficient estimates; however, such heterogeneity does not appear to be substantial enough to qualitatively influence the estimates derived from the parametric models. Hence, I find that (i) the green Solow model is a robust framework for analyzing carbon emissions convergence and (ii) carbon emissions are converging across a large sample of countries. My results suggest that international agreements that assign pollution rights based on population levels may be agreeable to many nations.
•Formally investigate mixing in cross-country distribution of emissions.•Methods do not require a priori selection of number of groups.•Two distinct groups of emitters, with polarization setting in ...from 1985.•Check robustness to determinants of group membership.•Advocate a heterogeneous policy to reduce worldwide emissions.
Economists and environmental policymakers have recently begun advocating a bottom-up approach to climate change mitigation, focusing on reduction targets for groups of nations, rather than large scale global policies. We advance this discussion by conducting a rigorous empirical analysis of the global distribution of carbon emissions along several important dimensions: groupings, polarization, mobility, and volatility. In contrast to previous work, our empirical analysis is both comprehensive and data-driven. We discuss how robust empirical evidence may aid policymakers in forging a heterogeneous carbon abatement policy.
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