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.
We estimate the potential negative effects of underground natural gas storage on local residents using hedonic regression and a sample of Indiana properties transacted between 2004 and 2013. We find ...that underground natural gas storage activities significantly reduce property values. Property values increase by about 10 percent at a distance of 1 kilometer from a storage field. Each additional storage well and observation well located near a property reduces the property's value by about 0.43 percent and 2.64 percent, respectively. Our research sheds new light on a previously unexplored aspect of natural gas resource activities.
Adverse selection is an operating risk of crop insurance. Based on survey data on crop insurance collected by questionnaires in Inner Mongolia, China, the paper uses non-parametric analysis and ...econometric models to estimate the relationship between conditions for crop production and farmers＇ insurance decision in order to test the existence of farmers＇ adverse selection. The results show farmers＇ adverse selection does exist, but settling a claim by negotiation and premium subsidy from governments at all levels can defuse farmers＇ adverse selection under the current system of crop insurance. Risk regionalization, heterogeneous insurance contract and product innovation may decrease adverse selection to some extent.
We propose a simple kernel estimator for semiparametric partial linear models with endogeneity in the nonparametric function. Compared to the existing backfitting estimator, our estimator is ...notationally simpler and relatively easier to implement. We also discuss data-driven bandwidth selection to implement this estimator in practice. Monte Carlo exercises show that the finite sample performance of these two estimators is similar.
•We focus on semiparametric regression with endogeneity.•Our estimator is simple to implement.•Our estimator performs well in finite samples.
We consider private provision of an environmental public good and the link between voluntary pollution-abatement markets and the optimal level of mandatory environmental regulation. We show that ...voluntary abatement markets react to the level of mandatory abatement imposed and that an optimal regulatory policy must account for that reaction. We consider several assumptions about consumer behavior and find that the voluntary market's reaction to regulation depends on the motivating behavior of consumers. Whether the optimal level of mandatory abatement is higher than the level provided by traditional settings depends on the direction and magnitude of the voluntary market's reaction to changes in mandatory abatement.
Purpose
The purpose of this paper is to assess the effect of crop insurance on farmer income in Inner Mongolia, China
Design/methodology/approach
We use a survey of farmers in Inner Mongolia, China, ...with difference-in-difference, propensity score matching, and hybrid propensity score matching difference-in-difference treatment effect estimators to assess the effectiveness of crop insurance on farmer income.
Findings
The empirical results show that crop insurance does not significantly affect farmer income under the current policy of “low-premium, wide-coverage, low-guarantee and low-indemnity.”
Research limitations/implications
A possible limitation of this study is that the data includes only one geographic area, Inner Mongolia, China, and so results may not generalize to other regions of China.
Practical implications
This research provides empirical estimates of the impact of crop insurance on farm household income. Given the results, we speculate that a number of specific changes to the crop insurance program might increase its positive impacts.
Originality/value
We believe this is the first study to use individual farm household level survey data to evaluate the impact of crop insurance on farmer income in China.
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