title: Spatial correlation in household choices in rural Indonesia

authors: Gibson, John

subjects: spatial correlation

abstract: Many household choices in developing economies are correlated with choices of nearby households, because nearby locations have unobserved factors in common and households and their neighbors interact. However, models recognizing these spatial correlations are rarely used because few surveys give exact household locations. In the present paper, we use unusual data from rural Indonesia, where distances between households can be measured, to examine spatial effects in equations for non-farm enterprises' share of household incomes and food's share of total household budgets. Our results indicate that ignoring spatial correlations in household choices might cause bias and inferential errors and could distort recommended policy interventions aiming to raise living standards in rural Asia.

text: Spatial correlation in household choices in rural Indonesia Many household choices in developing economies are correlated with choices of nearby households, because nearby locations have unobserved factors in common and households and their neighbors interact. However, models recognizing these spatial correlations are rarely used because few surveys give exact household locations. In the present paper, we use unusual data from rural Indonesia, where distances between households can be measured, to examine spatial effects in equations for non-farm enterprises' share of household incomes and food's share of total household budgets. Our results indicate that ignoring spatial correlations in household choices might cause bias and inferential errors and could distort recommended policy interventions aiming to raise living standards in rural Asia.

year: 2011-09

title: Entrepreneurship and Debt: Growth Aversion, Debt Aversion, Overconfidence, and the Effects on Small Business Credit Decisions

authors: Bell, Kendon

subjects: Entrepreneurship

abstract: Widespread empirical consistency with the pecking order theory of capital structure (Myers & Majluf, 1984) has led researchers to conclude that small and medium sized enterprises conform to this theory’s predictions. In chapter 2, a formal model is presented that allows for plausible and empirically supported psychological owner/manager objectives in addition to the profit motive. This chapter provides an alternative explanation of preferences for low leverage that does not rely on informational asymmetry, as well as predicting limits on firm sizes, and the existence of collateral.

In chapter 3, a formal model of the entrepreneurship decision with credit is presented for firms with managers who overestimate their probability of success. Explanations for credit rationing, predatory lending, and the existence of collateral are produced and the welfare implications of overconfidence are investigated in an equilibrium model. It is found that overconfidence can increase overall welfare but harms entrepreneurs who are able to engage in poor projects.

text: Entrepreneurship and Debt: Growth Aversion, Debt Aversion, Overconfidence, and the Effects on Small Business Credit Decisions Widespread empirical consistency with the pecking order theory of capital structure (Myers & Majluf, 1984) has led researchers to conclude that small and medium sized enterprises conform to this theory’s predictions. In chapter 2, a formal model is presented that allows for plausible and empirically supported psychological owner/manager objectives in addition to the profit motive. This chapter provides an alternative explanation of preferences for low leverage that does not rely on informational asymmetry, as well as predicting limits on firm sizes, and the existence of collateral.

In chapter 3, a formal model of the entrepreneurship decision with credit is presented for firms with managers who overestimate their probability of success. Explanations for credit rationing, predatory lending, and the existence of collateral are produced and the welfare implications of overconfidence are investigated in an equilibrium model. It is found that overconfidence can increase overall welfare but harms entrepreneurs who are able to engage in poor projects.

year: 2012

title: Hāwatewate

authors: Maxwell, Te Kahautu

abstract: Hāwatewate; this composition is in remembrance of the hanging of the Ōpōtiki missionary Rev Carl Sylvius Volkner by the Hauhau, Kereopa Te Rau of Ngāti Rangiwewehi of Te Arawa. As a consequence the Te Whakatōhea chief Mokomoko was wrongly convicted and executed by hanging in Mount Eden Prison 17 May 1866. 143870 acres of Te Whakatōhea land was confiscated under the New Zealand Settlements Act 1863. This item placed third in the Whakaeke discipline and was performed by Ōpōtiki Mai Tawhiti at the Te Matatini World Championship Kapa Haka Competition 2015.

text: Hāwatewate Hāwatewate; this composition is in remembrance of the hanging of the Ōpōtiki missionary Rev Carl Sylvius Volkner by the Hauhau, Kereopa Te Rau of Ngāti Rangiwewehi of Te Arawa. As a consequence the Te Whakatōhea chief Mokomoko was wrongly convicted and executed by hanging in Mount Eden Prison 17 May 1866. 143870 acres of Te Whakatōhea land was confiscated under the New Zealand Settlements Act 1863. This item placed third in the Whakaeke discipline and was performed by Ōpōtiki Mai Tawhiti at the Te Matatini World Championship Kapa Haka Competition 2015.

year: 2015-01-08