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State Dependence (state + dependence)
Selected AbstractsState Dependence at Internet PortalsJOURNAL OF ECONOMICS & MANAGEMENT STRATEGY, Issue 2 2006Avi Goldfarb This study offers evidence of the existence of switching costs on the Internet. It uses more flexible methods than previously possible to separate switching costs from serially correlated unobservables at Internet portals. The data contain nearly 1,000 observations per household, allowing for household-specific regressions that control for all household-specific heterogeneity. The results show that households exhibit switching costs. The loyalty generated by these costs drives a large fraction of portal visits and generates considerable revenues; however, these revenues are not large enough to justify the losses incurred by Internet portals in the 1990s while building market share. The results also suggest that random coefficients models overestimate true state dependence. [source] A dynamic analysis of GP visiting in Ireland: 1995,2001HEALTH ECONOMICS, Issue 2 2007Anne Nolan Abstract This paper examines the determinants of GP visiting in Ireland, using panel data from the Living in Ireland Survey from 1995,2001. While cross-sectional studies provide important information on GP visiting patterns at a certain point in time, with panel data we can also control for unobserved individual heterogeneity, as well as identify whether it is the same individuals who consistently visit their GP year on year, or whether there is more mobility in visiting. We therefore estimate dynamic models of GP utilisation, and attempt to decompose the observed variation in GP visiting into components attributable to observed individual characteristics, unobserved individual heterogeneity and state dependence. Copyright © 2006 John Wiley & Sons, Ltd. [source] Measuring state dependence in individual poverty histories when there is feedback to employment status and household compositionJOURNAL OF APPLIED ECONOMETRICS, Issue 7 2009Martin Biewen This paper argues that the assumption of strict exogeneity, which is usually invoked in estimating models of state dependence with unobserved heterogeneity, is violated in the poverty context as important variables determining contemporaneous poverty status, in particular employment status and household composition, are likely to be influenced by past poverty outcomes. Therefore, a model of state dependence is developed that explicitly allows for possible feedback effects from past poverty to future employment and household composition outcomes. Empirical results based on data from the German Socio-Economic Panel (GSOEP) suggest that there are indeed such feedback effects and that failure to take them into account may lead to biased estimates of the state dependence effect. Copyright © 2009 John Wiley & Sons, Ltd. [source] The interrelated dynamics of unemployment and low-wage employmentJOURNAL OF APPLIED ECONOMETRICS, Issue 3 2007Mark B. Stewart This paper examines the extent of state dependence in unemployment and the role played in this by intervening low-wage employment. A range of dynamic random and fixed-effects estimators are compared. Low-wage employment is found to have almost as large an adverse effect as unemployment on future prospects and the difference in their effects is found to be insignificant. Evidence is presented that low-wage jobs act as the main conduit for repeat unemployment and considerably increases its probability. Obtaining a higher-wage job reduces the increased risk of repeat unemployment to insignificance. Copyright © 2007 John Wiley & Sons, Ltd. [source] State Dependence at Internet PortalsJOURNAL OF ECONOMICS & MANAGEMENT STRATEGY, Issue 2 2006Avi Goldfarb This study offers evidence of the existence of switching costs on the Internet. It uses more flexible methods than previously possible to separate switching costs from serially correlated unobservables at Internet portals. The data contain nearly 1,000 observations per household, allowing for household-specific regressions that control for all household-specific heterogeneity. The results show that households exhibit switching costs. The loyalty generated by these costs drives a large fraction of portal visits and generates considerable revenues; however, these revenues are not large enough to justify the losses incurred by Internet portals in the 1990s while building market share. The results also suggest that random coefficients models overestimate true state dependence. [source] Sibling death clustering in India: state dependence versus unobserved heterogeneityJOURNAL OF THE ROYAL STATISTICAL SOCIETY: SERIES A (STATISTICS IN SOCIETY), Issue 4 2006Wiji Arulampalam Summary., Data from a range of environments indicate that the incidence of death is not randomly distributed across families but, rather, that there is a clustering of death among siblings. A natural explanation of this would be that there are (observed or unobserved) differences across families, e.g. in genetic frailty, education or living standards. Another hypothesis that is of considerable interest for both theory and policy is that there is a causal process whereby the death of a child influences the risk of death of the succeeding child in the family. Drawing language from the literature on the economics of unemployment, the causal effect is referred to here as state dependence (or scarring). The paper investigates the extent of state dependence in India, distinguishing this from family level risk factors that are common to siblings. It offers some methodological innovations on previous research. Estimates are obtained for each of three Indian states, which exhibit dramatic differences in socio-economic and demographic variables. The results suggest a significant degree of state dependence in each of the three regions. Eliminating scarring, it is estimated, would reduce the incidence of infant mortality (among children who are born after the first child) by 9.8% in the state of Uttar Pradesh, 6.0% in West Bengal and 5.9% in Kerala. [source] ,One Household/Two Systems'PACIFIC ECONOMIC REVIEW, Issue 1 2002Calla Wiemer Under China's dual-track approach to reform, ,one household/two systems', or combining state and private employment within a family, connotes having the best of both worlds. Drawing upon work history data for 5000 households, the present study looks at who is employed in the private sector. Findings are that marriage to a state-employed spouse actually reduces the probability of one's holding a private sector job and that the effects of living with a state-connected parent are mixed. Were households more actively pursuing a one-household/two-systems strategy, the transition from state dependence would be expedited. [source] THE ROLE OF SUNK COSTS IN THE DECISION TO INVEST IN R&D,THE JOURNAL OF INDUSTRIAL ECONOMICS, Issue 4 2009JUAN A. MÁÑEZ We present a dynamic empirical model of a firm's R&D decisions that is consistent with the existence of sunk R&D costs, taking into account that these costs may differ between small and large firms, and among different technological regimes. We estimate a multivariate dynamic discrete choice model using firm-level data of Spanish manufacturing for 1990,2000. Conditional on firm heterogeneity and serially correlated unobservable factors, we find that R&D history matters. This true state dependence allows inferring the existence of sunk R&D costs associated with performing R&D. Sunk R&D costs are found to be higher for large, high-tech firms. [source] | ||||||||||