De Facto Measure Research Articles

CAPITAL ACCOUNT LIBERALIZATION AND ECONOMIC PERFORMANCE IN MALAYSIA

This study examines the impact of capital account liberalization on economic growth in Malaysia from 1970 to 2004. It uses two measures of capital account openness, namely de jure (an index of liberalization) and de facto (the volume of capital flows). The empirical results based on the modified growth model demonstrate that the de jure measure of capital account liberalization shows an adverse effect on growth in Malaysia. However, the de facto measure shows a robust positive effect on economic growth. The results also highlight that the effect of capital account liberalization on growth is contingent on a country's level of financial development and the quality of its institutions.

Absolute distance measurement by dual-comb interferometry with adjustable synthetic wavelength

Absolute distances were measured using two femtosecond lasers of different pulse repetition rates by revisiting the dual-comb interferometric method proposed by Coddington et al (2009 Nature Photon. 3 351–6). The apparatus built for experiments was designed to eliminate the dead zones in the measurement range by separating the measurement pulses from the reference pulses using orthogonal polarization. In addition, the pulse repetition rate of the signal laser was made tunable in order to extend the non-ambiguity range (NAR) by adaptively adjusting the synthetic wavelength in consideration of the de facto measurement stability in the air. Actual tests performed in the open air proved that a target distance of 69.3 m is measured without interruptions at a 200 µs update rate in the presence of a ∼170 µm drift of the optical path length caused by the fluctuation of the refractive index of air. The proposed hardware system design for effective NAR extension will facilitate the use of dual-comb interferometry for various terrestrial applications.

An Evaluation of Cross-National Measures of Judicial Independence

We provide a conceptual map of judicial independence and evaluate the content, construct, and convergent validity of 13 cross-national measures. There is evidence suggesting the validity of extant de facto measures, though their proper use requires attention to correlated patterns of measurement error and missing data. The evidence for the validity of extant de jure measures is weaker. Among other findings, we do not observe a strong and direct link between the rules that allegedly promote judicial independence and independent behavior. The results suggest that while the measurement of both de jure and de facto judicial independence requires a careful strategy for measuring latent concepts, the way that scholars should address this issue depends on whether they are targeting the incentives for independent behavior induced by formal rules or independent behavior itself. (JEL C19, C80, O43)

The Downside of Relying on Research Outputs to Assess Business Faculty Performance

This commentary presents an Australian perspective on Balkin and Mello’s “Facilitating and Creating Synergies between Teaching and Research: The Role of the Academic Administrator.” It addresses one particularly important aspect of the separation of teaching and research in business schools; namely, the increasing dominance of discipline-based research output measures in overall business faculty performance, coupled with a reliance on journal rankings as de facto quality measures for research output. Some possible alternate approaches to research performance/impact measurement in our rapidly changing academic environment are also considered.

Cognitive Tests Used in Selection Can Have Content Validity as Well as Criterion Validity: A broader research review and implications for practice

Many industrial/organizational (I/O) psychologists, both academics and practitioners, believe that the content validity model is not appropriate for cognitive ability measures used in personnel selection. They believe that cognitive tests can have criterion validity and construct validity but not content validity. Based on a review of the broader differential psychology research literature on cognitive skills, aptitudes, and abilities, this article demonstrates that with the proper content validity procedures, cognitive ability measures, including, ultimately, some de facto measures of general cognitive ability, can have content validity in addition to criterion and construct validity. Finally, the article considers, critiques, and refutes the specific arguments contending that content validity is inappropriate for use with cognitive skills and abilities. These research facts have implications for I/O practice, professional standards, and legal defensibility of selection programs.

The role of international trade and financial integration in the development model of the BRIC economies

This study aims at examining the role of the international trade and financial integration behind the impressive economic growth rates of the BRIC economies. It employs a Barro-type growth model encompassing several robust correlates of economic growth and alternative measures of international trade and financial openness. The estimation rests on a testing down procedure applied to a dynamic panel model based on four-year non-overlapping averages for 88 countries during the 1973–2008 period. The empirical results provide consistent evidence of growth-conducive effects of the international trade integration in addition to the conventional determinants. However, no statistically discernible effect on economic growth of the de facto measures of international financial integration is identified, lending support to the argument that the benefits may be indirect.

Trade openness and the informational efficiency of emerging stock markets

This paper examines the empirical link between trade openness and the informational efficiency of stock markets in 23 developing countries. Our fixed effects panel regression results document a significant negative relation between trade openness and stock return autocorrelations only when the de facto measure is used. On this basis, we argue that a greater level of de facto trade openness is associated with a higher degree of informational efficiency in these emerging stock markets because the former signals higher future firm profitability, and investors tend to react faster to information when there is less uncertainty about a firm's future earnings or cash flows. Further analyses find no significant association between the extent of financial openness and the degree of informational efficiency.

Capital Flows, Exchange Rate Flexibility, and the Real Exchange Rate

This paper analyzes the impact of capital inflows and exchange rate flexibility on the real exchange rate in developing countries based on panel cointegration techniques. The results show that public and private flows are associated with a real exchange rate appreciation. Among private flows, portfolio investment has the highest appreciation effect-almost seven times that of foreign direct investment or bank loans-and private transfers have the lowest effect. Using a de facto measure of exchange rate flexibility, we find that a more flexible exchange rate helps to dampen appreciation of the real exchange rate stemming from capital inflows.

Global Imbalances and Capital Account Openness: An Empirical Analysis

We investigate if capital account openness has played a major role in the evolution of global imbalances on the period 1980-2003. We estimate, with panel regression techniques, the impact of capital account openness on medium run current account imbalances for industrialized and emerging countries by using a de jure measure of capital account openness (the Chinn-Ito index of capital account openness, 2002, 2006) and a de facto measure of capital account openness (the gross foreign assets measured as the sum of foreign assets and foreign liabilities). By increasing the opportunities of overseas investments, the relative capital account openness has had positive impact on medium run current account balances of industrialized countries (because of downward pressures on domestic investment rates). Conversely, the relative capital account openness has had negative impact on medium run current account balances of emerging countries (because of upward pressures on domestic investment rates). The evolutions of domestic and foreign capital account openness have allowed increasing medium run current account balances in absolute value during this period.

Measures of volume and the use of de facto measure standards in western Japan during the medieval period

Measures of volume and the use of de facto measure standards in western Japan during the medieval period

Capital Flows, Exchange Rate Flexibility, and the Real Exchange Rate

This paper analyzes the impact of capital inflows and exchange rate flexibility on the real exchange rate in developing countries based on panel cointegration techniques. The results show that public and private flows are associated with a real exchange rate appreciation. Among private flows, portfolio investment has the highest appreciation effect-almost seven times that of foreign direct investment or bank loans-and private transfers have the lowest effect. Using a de facto measure of exchange rate flexibility, we find that a more flexible exchange rate helps to dampen appreciation of the real exchange rate stemming from capital inflows.

Measures of volume and the use of de facto measure standards in the Kinai area during the medieval period of Japan

Measures of volume and the use of de facto measure standards in the Kinai area during the medieval period of Japan

Unpacking the Rule of Law: A Review of Judicial Independence Measures

The rule of law has become a favored solution to crucial substantive problems in the social sciences. Measures of the concept have proliferated over the past decade, yet scholars commonly question their validity. We argue that measurement validity concerns are largely a result of disagreement over the concept being targeted. We suggest that the broad, multidimensional concept of the rule of law should not guide empirical research, even if the individual concepts from which it is constituted should. Focusing on judicial independence, a central component of the rule of law, we evaluate the validity of thirteen measures. We find support for the validity of a number of de facto measures of judicial independence, and less support for de jure judicial independence measures. Critically, we highlight a significant missing data problem in these data and suggest how this problem is compounded by common practices used to demonstrate robustness.

The Changing Racial and Ethnic Composition of the US Population: Emerging American Identities

Images and interpretations of the past, present, and future of the American racial and ethnic landscape are contradictory. Many accounts focus on the increasing diversity that results from immigration and differential natural increase as well as the proliferation of racial and ethnic categories in census data. Less attention has been paid to the formation and erosion of racial and ethnic identities produced by intermarriage and ethnic blending. The framers and custodians of census racial classifications assume a “geographic origins” definition of race and ethnicity, but thede factomeasures in censuses and social surveys rely on folk categories that vary over time and are influenced by administrative practices and sociopolitical movements. We illustrate these issues through an in‐depth examination of the racial and ethnic reporting by whites, blacks, Asians, and Hispanics in the 2000 census. The emerging pattern, labeled here as the “Americanization” of racial and ethnic identities, and most evident for whites and blacks, is of simplified racial identities with little acknowledgment of complex ancestries. National origin is the predominant mode of reporting racial and ethnic identities among Asians and Hispanics, especially first‐generation immigrants. The future of racial and ethnic identities is unknowable, but continued high levels of immigration, intermarriage, and social mobility are likely to blur contemporary divisions and boundaries.

Financial Globalization and Monetary Policy Discipline: A Survey With New Evidence from Financial Remoteness

The literature appears to have reached a consensus that financial globalization has had a “disciplining effect” on monetary policy, as it has reduced the returns from—and hence the temptation for—using monetary policy to stabilize output. As a result, monetary policy over recent years has placed more emphasis on stabilizing inflation, resulting in reduced inflation and greater output stability. However, this consensus has not been accompanied by convincing empirical evidence that such a relationship exists. One reason is likely to be that de facto measures of financial globalization are endogenous, and that instruments for financial globalization are elusive. This paper introduces a new instrument—financial remoteness—as a plausibly exogenous instrument for financial openness. It examines the relationship between financial globalization and median inflation levels over an 11-year cross-section from 1994 through 2004, as well as a panel of five-year median inflation levels between 1980 and 2004. The results confirm a negative relationship between median inflation and financial globalization in the base specification, but this relationship is sensitive to the inclusion of conditioning variables or country fixed effects, precluding any strong inferences.

Measuring and modeling tire-pavement noise on various concrete pavement textures

It is well accepted that pavement texture affects tire-pavement noise. Furthermore, there exist a large number of unique nominal concrete pavement textures to choose from, and with tire-pavement noise an important pavement surface characteristic, pressure now exists to select textures that are quieter but do not compromise safety and to some degree, durability. To assist in this optimization process, improvements are needed in the efficiency and accuracy of texture measurement, along with the means to characterize concrete pavement texture in such a way that is more relevant to the potential for tire-pavement noise. To illustrate improvements being made in measurement technology, an innovative robotic texture measurement system termed RoboTex is described herein. RoboTex consists of a line laser machine vision sensor fixed atop a remote-controlled robotic chassis. The system is capable of collecting three-dimensional macrotexture data with a spatial resolution of approximately 0.4 mm2 and a height resolution of 0.01 mm. For tire-pavement noise measurement, On-Board Sound Intensity (OBSI) has become the de facto measurement standard in the USA. While most measurements to date have been conducted at 60 mph using a Goodyear Aquatred III test tire, recent standardization is migrating towards the new ASTM F 2493 Standard Reference Test Tire (SRTT). Coupling texture and noise data, collected with RoboTex and OBSI, respectively, is serving to advance the state of the art. The ultimate goal is to identify the fundamental links between texture and noise. In the interim, more relevant phenomenological links are sought that have the potential to be expanded to more fundamental models as more is learned about these complex phenomena. This project utilized data collected on over 1000 unique concrete pavement test sections located throughout North America under sponsorship of the National Concrete Pavement Technology Center at Iowa State University, Federal Highway Administration, American Concrete Pavement Association, and now a consortium of State Departments of Transportation. The specifics of these measurement systems, and analysis techniques used to link the results, are described herein

Financial Globalization and Monetary Policy Discipline

The literature appears to have reached a consensus that financial globalization has had a "disciplining effect" on monetary policy, as it has reduced the returns from--and hence the temptation for--using monetary policy to stabilize output. As a result, monetary policy over recent years has placed more emphasis on stabilizing inflation, resulting in reduced inflation and greater output stability. However, this consensus has not been accompanied by convincing empirical evidence that such a relationship exists. One reason is likely to be that de facto measures of financial globalization are endogenous, and that instruments for financial globalization are elusive. In this paper, I introduce a new instrument, financial remoteness, as a plausibly exogenous instrument for financial openness. I examine the relationship between financial globalization and median inflation levels over an 11 year cross-section from 1994 through 2004, as well as a panel of 5-year median inflation levels between 1980 and 2004. The results confirm a negative relationship between median inflation and financial globalization in the base specification, but this relationship is sensitive to the inclusion of conditioning variables or country fixed effects, precluding any strong inferences.

Do Donors Care about Declining Trade Revenues from Liberalization? An Analysis of Aid Allocation

Many developing country governments rely heavily on trade tax revenue. Therefore, trade liberalization can be a potential source of significant fiscal instability, and may affect government spending on development activities. Donor nations may take this into account in making their aid allocation decisions for developing nations. Our findings suggest that bilateral donors provide substantially larger amounts of aid to compensate (or reward) liberalizing recipient nations who also face declining trade tax revenues. Interestingly, these effects are statistically insignificant in the context of multilateral aid. Multilateral donors are more focused on income per capita and may be using it as a de facto measure of average living standards in the recipient nations.

SE19 CAN THE TRAINEE OPERATIVE LOGBOOK BE USED AS AN ASSESSMENT TOOL OF THE LEVEL OF SUPERVISION PROVIDED BY TRAINING CENTRES?

Purpose Specialist trainees and the specialty boards of the College of Surgeons expect that levels of supervision will not remain static during training. As training progresses the level of supervision will change, from an assistant role and direct supervision towards independent practice with consultation available as required. The Summary of Operative Experience may provide a de facto measurement of this.Methodology Assessment of the surgical logbook of an individual trainee to document the changes in the level of supervision that occur during a training term, the factors that influence it, and the degree of variation between posts.Results Upon arrival at a new institution supervision for most cases is direct. For minor and intermediate surgery that supervision is rapidly relaxed once it has been confirmed the trainee has acquired and demonstrated the required skills. In areas of complex surgery (such as neonatal surgery) there is a clear progression observable over the training period. In the early part of the term the trainee is assisting in complex surgery, with the surgeon supervisor operating. By the end of the term those roles may have reversed, but there are significant variations between posts.Conclusion It is possible to use the operative logbook as an indicator of the supervision provided by training centres to trainees. This could provide one mechanism to enable specialty boards to confirm that supervision for trainees is appropriate to their needs as they progress through their training. It also allows an indirect measure of the quality of the post for specialty training.

Internet advertising: Is anybody watching?

Click-through rates are still the de facto measure of Internet advertising effectiveness. Unfortunately, click-through rates have plummeted. This decline prompts two critical questions: (1) Why do banner ads seem to be ineffective and (2) what can advertisers do to improve their effectiveness? To address these questions, we utilized an eye-tracking device to investigate online surfers’ attention to online advertising. Then we conducted a large-scale survey of Internet users’ recall, recognition, and awareness of banner advertising. Our research suggests that the reason why click-through rates are low is that surfers actually avoid looking at banner ads during their online activities. This implies that the larger part of a surfer's processing of banners will probably be done at the pre-attentive level. If such is the case, click-through rate is an ineffective measure of banner ad performance. Our research also shows that banner ads do have an impact on traditional memory-based measure of effectiveness. Thus, we claim that advertisers should rely more on traditional brand equity measures such as brand awareness and advertising recall. Using such measures, we show that repetition affects unaided advertising recall, brand recognition, and brand awareness and that a banner's message influences both aided advertising recall and brand recognition.