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International business research has long acknowledged the importance of regional factors for foreign direct investment (FDI) by multinational corporations (MNCs). However, significant differences when defining these regions obscure the analysis about how and why regions matter. In response, we develop and empirically document support for a framework to evaluate alternative regional grouping schemes. We demonstrate application of this evaluative framework using data on the global location decisions by US-based MNCs from 1980 to 2000 and two alternative regional grouping schemes. We conclude with discussion of implications for future academic research related to understanding the impact of country groupings on MNC FDI decisions.

Survival (default) data are frequently encountered in financial (especially credit risk), medical, educational, and other fields, where the “default” can be interpreted as the failure to fulfill debt payments of a specific company or the death of a patient in a medical study or the inability to pass some educational tests.

This paper introduces the basic ideas of Cox's original proportional model for the hazard rates and extends the model within a general framework of statistical data mining procedures. By employing regularization, basis expansion, boosting, bagging, Markov chain Monte Carlo (MCMC) and many other tools, we effectively calibrate a large and flexible class of proportional hazard models.

The proposed methods have important applications in the setting of credit risk. For example, the model for the default correlation through regularization can be used to price credit basket products, and the frailty factor models can explain the contagion effects in the defaults of multiple firms in the credit market.

IV estimation is examined when some instruments may be invalid. This is relevant because the initial just-identifying orthogonality conditions are untestable, whereas their validity is required when testing the orthogonality of additional instruments by so-called overidentification restriction tests. Moreover, these tests have limited power when samples are small, especially when instruments are weak. Distinguishing between conditional and unconditional settings, we analyze the limiting distribution of inconsistent IV and examine normal first-order asymptotic approximations to its density in finite samples. For simple classes of models we compare these approximations with their simulated empirical counterparts over almost the full parameter space. The latter is expressed in measures for: model fit, simultaneity, instrument invalidity, and instrument weakness. Our major findings are that for the accuracy of large sample asymptotic approximations instrument weakness is much more detrimental than instrument invalidity. Also, IV estimators obtained from strong but possibly invalid instruments are usually much closer to the true parameter values than those obtained from valid but weak instruments.

It is well known that volatility asymmetry exists in financial markets. This paper reviews and investigates recently developed techniques for Bayesian estimation and model selection applied to a large group of modern asymmetric heteroskedastic models. These include the GJR-GARCH, threshold autoregression with GARCH errors, TGARCH, and double threshold heteroskedastic model with auxiliary threshold variables. Further, we briefly review recent methods for Bayesian model selection, such as, reversible-jump Markov chain Monte Carlo, Monte Carlo estimation via independent sampling from each model, and importance sampling methods. Seven heteroskedastic models are then compared, for three long series of daily Asian market returns, in a model selection study illustrating the preferred model selection method. Major evidence of nonlinearity in mean and volatility is found, with the preferred model having a weighted threshold variable of local and international market news.

This paper provides a selective survey of the panel macroeconometric techniques that focus on controlling the impact of “unobserved heterogeneity” across individuals and over time to obtain valid inference for “structures” that are common across individuals and over time. We consider issues of (i) estimating vector autoregressive models; (ii) testing of unit root or cointegration; (iii) statistical inference for dynamic simultaneous equations models; (iv) policy evaluation; and (v) aggregation and prediction.

This chapter proposes semiparametric estimation of the relationship between growth rate of GDP per capita, growth rates of physical and human capital, labor as well as other covariates and common trends for a panel of 23 OECD countries observed over the period 1971–2015. The observed differentiated behaviors by country reveal strong heterogeneity. This is the motivation behind using a mixed fixed- and random coefficients model to estimate this relationship. In particular, this chapter uses a semiparametric specification with random intercepts and slopes coefficients. Motivated by Lee and Wand (2016), the authors estimate a mean field variational Bayes semiparametric model with random coefficients for this panel of countries. Results reveal nonparametric specifications for the common trends. The use of this flexible methodology may enrich the empirical growth literature underlining a large diversity of responses across variables and countries.

Quality-Oriented Education (su zhi jiao yu) is a national education reform initiative that presents ongoing opportunities and challenges to schools, local bureaus of education, and the overall educational system in China today. This chapter seeks to gain insight into if and how Quality-Oriented Education, 10 years into its enactment, has taken root in practice. We posit that a reform agenda is best manifested through well-aligned and operable standards for school effectiveness. We introduce the policy-driven definition for school effectiveness and an evaluation framework depicting the intended focus of Quality-Oriented Education. Using an iterative and inductive process for content analysis, we compare the policy-driven framework with the coding results of a 2009 national inventory of actual school evaluation schemes in 91 Chinese school districts. Our review points out that the new mission of Quality-Oriented Education advocates educational equity, curriculum reform, and systemic support for school-based management. However, at the operational level, there are great variations in terms of content domain, focus, and function among school evaluation schemes with notable regional differences. Furthermore, schools are still caught between the existing system that measures school performance by achievement and the intended accountability scheme that calls for enhanced student ability. This chapter adds to the empirical foundation for the development of a new framework that not only captures the spirit of the national educational reform but also is informed of the developmental needs of schools in drastically different geo-economical and social conditions.

Town centre redevelopment provides an opportunity to redesign the topology of the road network. Environmental and safety considerations will usually entail some streets being reserved for pedestrians only and others for access to car parks and service bays close to the pedestrian precinct. The effect of the new topology on traffic flow can and should be an input to the planning process. One way to appraise alternative schemes is to find the extent to which traffic could be routed to reduce the amount of conflict there will be between the different streams of traffic at the junctions; conflict at junctions is a simple measure indicating the potential for both accidents and congestion with its attendant pollution.

The problem of finding an assignment of flow such that conflict is minimised is a constrained optimisation problem. The main constraints are provision of routes for a demand specified by an origin-destination (OD) matrix. The objective function which measures the amount of conflict between the different streams is simple to formulate; it depends only on the topology of the network and the OD matrix of demand. But it is a quadratic function of a type which is not amenable to existing programming methods. However, the author has developed an iterative method for obtaining good, if not necessarily optimal, solutions.

The purpose of the paper is to demonstrate the appraisal of hypothetical networks involving four external zones. The OD matrix has been chosen to model some through as well as mostly inbound traffic flow. Various alternative schemes are appraised ranging from those which merely allow one access point to a car park within a ring of streets surrounding the pedestrian precinct, to those which retain one link across the ring and up to two car parks. This is a pilot study for a larger one involving the systematic analysis of hypothetical town centre topologies. So far it has shown the advantage of two access points over one, and the greater advantage of two separate car parks each with a single access point which allows each car park to be in a separate cell of the road network. The relative positions of the access points and the link across the ring also affect the amount of conflict.