Technical Appendix Research Articles

Technical Appendix: Robust Asset Allocation with Benchmarked Objectives

Technical Appendix: Robust Asset Allocation with Benchmarked Objectives

Relapsing Fever Spirochete in Seabird Tick,Japan

To the Editor: Tick-borne relapsing fever (TBRF) is caused by infection with spirochetes belonging to the genus Borrelia. We previously reported a human case of febrile illness suspected to be TBRF on the basis of serologic examination results; the vector most likely was a genus Carios tick that had fed on a seabird colony (1). However, surveillance of ticks in the area did not identify Borrelia spp. in any of the Carios ticks sampled (2). In 2007 and 2008, a borreliosis investigation was conducted on Kutsujima Island (35.71′N, 135.44′E) because a bird-associated tick, genus Carios, inhabits this island. During the investigation, 77 Carios ticks (55 nymphs, 11 adult males, and 11 adult females) were collected from colonies of seabirds: Swinhoe's storm petrel (Oceanodroma monorhis) and streaked shearwater (Calonectris leucomelas). Identification of tick species as C. sawaii was based on tick morphology and rrs gene sequence analysis of the tick mitochondrion DNA (2). Total DNA was extracted from the ticks by using a DNeasy Tissue Kit (QIAGEN, Germantown, MD, USA). For the detection of Borrelia DNA, PCR designed was based on the flagellin gene (flaB) according to Sato et al. (3). To check for contamination and amplicon carryover, we used blank tubes as a negative control for each experiment. Of 77 C. sawaii ticks that were positive by PCR of tick genes (2), 25 (14 nymphs, 6 adult males, 5 adult females) were positive for Borrelia DNA by PCR of flaB. To characterize the Borrelia spp., we sequenced amplified fragments of the flaB gene and the 16S ribosomal RNA (16SrRNA) gene of Borrelia spp. in a tick and compared the results with those of representative Borrelia spp. The primers BflaPBU and BflaPCR (3) for flaB and the 4 PCR primers (Technical Appendix) for 16SrRNA were used for direct sequencing and/or amplification. DNA sequence (GenBank accession no. {type:entrez-nucleotide,attrs:{text:AB491928,term_id:225703023,term_text:AB491928}}AB491928) of a 294-bp amplified fragment of flaB showed the following nucleotide similarities with those of Borrelia spp.: B. turicatae (98.98%), B. parkeri (98.30%), Borrelia sp. Carios spiro-1 (98.64%), and Borrelia sp. Carios spiro-2 (98.30%). DNA sequence (GenBank accession no. {type:entrez-nucleotide,attrs:{text:AB491930,term_id:225703027,term_text:AB491930}}AB491930) of a 1,490-bp amplified fragment of 16SrRNA showed the following nucleotide similarities with those of Borrelia spp.: B. turicatae (99.60%), B. parkeri (99.53%), and Borrelia sp. Carios spiro-2 (99.45%). Borrelia sp. Carios spiro-1 and Carios spiro-2, which were recently identified in C. kelleyi in the United States, have been classified into TBRF Borrelia (4,5). The Borrelia sp. found in this study, designated as Borrelia sp. K64, was closely related to B. turicatae but was distinct from other TBRF Borrelia spp. (Technical Appendix). To observe Borrelia spp. in tick tissues, we performed an indirect fluorescence assay (IFA) according to methods described by Fisher et al. (6), with minor modifications. A tick that was negative by PCRs of flab and 16SrRNA was used as a negative control. The IFA of the tick salivary gland and midgut was conducted by using acetone for fixation, goat anti-Borrelia sp. polyclonal immunoglobulin (Ig) G (1:100; KPL, Inc., Gaithersburg, MD, USA) as the primary antibody, and Alexa fluor 488-labeled rabbit antigoat IgG (1:200, Invitrogen, Carlsbad, CA, USA) as the secondary antibody. Our analysis showed a spirochete, which was stained by anti-Borrelia spp. antibody, in salivary gland and midgut tissue (Technical Appendix). However, no spirochetes were detected by IFA in the negative control (data not shown). We also attempted to isolate Borrelia spp. from tick specimens by using Barbour-Stoenner-Kelly medium (7). The motility of Borrelia-like organisms in the medium was initially observed by using dark-field microscopy. The Borrelia-like organisms were identified as Borrelia sp. K64 by sequencing of PCR-amplified fragments of flaB and 16SrRNA genes from the cultured medium. However, these Borrelia organisms were found for only 2 weeks after inoculation (data not shown). The vertebrate reservoir hosts of TBRF Borrelia are usually rodents but can be a variety of other animals (8). Although competence as a reservoir has not been determined for birds, infection of an owl with a TBRF Borrelia sp. has been reported (9). The vertebrate host of the spirochete has not yet been determined. Given our results, it is possible that seabirds are potential vertebrate hosts for Borrelia spp. In Japan, relapsing fever is a neglected infectious disease because it was not reported during 1956–1998 (10). In this study, we detected a Borrelia sp. in C. sawaii, and the spirochete we characterized is closely related to B. turicatae. Although the human health implications of infections caused by Borrelia spp. are not yet known, the findings from this study should contribute to the epidemiologic investigation of TBRF in Japan.

Spread of Cantagalo Virus to Northern Brazil

To the Editor: Cantagalo virus (CTGV) is a strain of vaccinia virus (VACV; Poxviridae) that was isolated from pustular lesions on dairy cattle and dairy workers in Rio de Janeiro State, Brazil, in 1999 (1). Subsequently, similar lesions caused by poxviruses have been reported in cattle and humans in all 4 states of the southeast region of Brazil and in Goias State in central-western Brazil (Technical Appendix, panel A, (2–7). Etiologic agents were VACV strains, most of which were genetically related to CTGV, such as Aracatuba and Passatempo viruses (2,4), with the exception of Guarani P1 virus, which was isolated in Minas Gerais State in 2001 and is phylogenetically close to VACV strain WR (5). Reisolation of Guarani P1 virus has not been reported. All VACV isolates related to CTGV share 2 molecular signatures: an 18-nt deletion in the A56R gene, which encodes viral hemagglutinin (1–7), and a 15-nt deletion in K2L gene, which encodes serine protease inhibitor-3 (8,9). Other VACV strains unrelated to CTGV were isolated from rodents in Brazil before 1999, but reisolation of these viruses has not been described (8). Although CTGV-like disease has not been reported in the northern, northeastern, and southern regions of the country, rapid interstate spread of CTGV infection is of concern. We report an episode of CTGV infection in Tocantins State, northern Brazil (Technical Appendix, panel A). In September 2008, teat and udder lesions were found on 15 of 356 febrile (39.5°C–40°C) cattle on a dairy farm in the municipality of Muricilândia. Small papules progressed to vesicles and pustules (Technical Appendix, panel B), which usually healed in 3–4 weeks. New lesions subsequently appeared on previously healthy cows on the same farm, and muzzle lesions developed on suckling calves. Dairy workers reported fever and lesions on their hands and neck. The farm was quarantined for 3 weeks until the condition was diagnosed. Four scab samples were sent for virus identification by PCR. Parts of the samples were used to infect BSC-40 cells and for DNA isolation by phenol-chloroform extraction, as described (6). After 48 hours, a strong cytopathic effect suggested poxvirus infection. The PCR used unambiguously differentiates CTGV-related infections from other orthopoxvirus diseases, including cowpox virus and several VACV strains (6). The reverse primer targets nucleotide sequences flanking the deletion signature of the hemagglutinin gene from CTGV-related viruses. Therefore, a specific annealing site for the reverse primer is produced when these external sequences are contiguous, as occurs in CTGV (6). The full-length hemagglutinin gene (≈900 bp) was detected in all clinical isolates and in the control DNA samples from CTGV, VACV strain WR, and cowpox virus strain Brighton-red (Technical Appendix, panel C). Nevertheless, when we used the primers specific for CTGV detection, only CTGV and the 4 isolates were positive, generating 714-bp fragments, which indicated CTGV as the etiologic agent. In late November, the disease was reported in 9 cattle in Santa Fe do Araguaia, a municipality 12 km west of Muricilândia. Those samples were also positive for CTGV by PCR (data not shown). For phylogenetic inference, we used DNA from the isolate MU-07 to sequence the genes A56R (927 bp), C7L (453 bp) that encodes a host-range virulence factor, and K2L (1095 bp); primers aligned externally to the open reading frames. PCR and sequencing were performed as described elsewhere (1). Sequences were deposited in GenBank (accession nos. {type:entrez-nucleotide,attrs:{text:FJ545689,term_id:242347664,term_text:FJ545689}}FJ545689, {type:entrez-nucleotide,attrs:{text:FJ545688,term_id:242347662,term_text:FJ545688}}FJ545688, and {type:entrez-nucleotide,attrs:{text:FJ545687,term_id:242347660,term_text:FJ545687}}FJ545687, respectively). Nucleotide identities in relation to CTGV sequences were 99.8% (A56R), 100% (C7L), and 100% (K2L). Both A56R and K2L genes had deletions considered to be molecular signatures for Brazilian VACV related to CTGV. Phylogenetic inference of the concatenated nucleotide dataset of 27 orthopoxviruses shows that the causative agent grouped with other Brazilian VACV related to CTGV (Technical Appendix, panel D). We consider the etiologic agent of the infection in Tocantins State to be a CTGV isolate, indicating spread of CTGV infection to northern Brazil. This spread could reflect interstate propagation of the virus due to movement of animals or people, which is particularly intense at the southern border with Goias State (location of the nearest CTGV outbreak) (3). Nevertheless, no epidemiologic data are available to support a relationship between these episodes. The Agency for Animal Health Defense of Tocantins State has not been previously notified of clinical suspicion of poxvirus infection in dairy herds. Another concern is spread of the virus to water buffalo, which account for a growing farming industry in Brazil, specifically in the northern states (www.ibge.gov.br/english). Infected buffalo have not yet been reported in Brazil, but the establishment of VACV strains in buffaloes has long been reported in India; economic losses have been substantial (9). Therefore, a careful survey should be conducted to evaluate dissemination of the virus to other states and species in the Amazon region.

Between Saying and Doing: Towards an Analytic Pragmatism * By ROBERT B. BRANDOM

Robert Brandom's latest book, the product of his John Locke lectures in Oxford in 2006, is a return to the philosophy of language and is easily read as a continuation and development of the views defended in Making it Explicit (1995). The text of the lectures is presented much as they were delivered, but it contains an ‘Afterword’ of more than 30 pages which responds to questions raised when he gave the lectures, and also when they were subsequently delivered in Prague the following year. The published text also contains relatively technical appendices to two of the lectures. The individual lectures engage with some important and difficult issues, often ones that were explored in detail in the earlier book. However, these discussions are located within a broader meta-philosophical context, and it says something about the abstract and difficult character of these views that they provide the main subject matter of the Afterword. This framework affects how we should understand the relations between this book and Making It Explicit too. Although most of the detailed discussions happily belong within the general project of the earlier book, they are offered as illustrations of a framework that is independent of this project. Indeed, Brandom suggests that defenders of the semantic views of David Lewis, for example, could embrace his main message as well as those who favour Brandom's own form of pragmatism.

Technical Appendix: Information Sales and Strategic Trading

In this technical appendix we extend the results in the paper “Information sales and strategic trading.” We study the problem of a monopolist selling information to a set of risk-averse traders. We first analytically reduce the seller’s problem to a simple constrained optimization, allowing for arbitrary allocations of information. We also fully characterize the equilibria in the models of Kyle (1985) and Kyle (1989) under general signal structures. Finally, we provide details on the numerical solutions to the information sales problems presented in the paper.

Computing protection level policies for dynamic capacity allocation problems by using stochastic approximation methods

A dynamic capacity allocation problem is considered in this paper. A fixed amount of daily processing capacity is allowed. Jobs of different priorities arrive randomly over time and a decision is required on which jobs should be scheduled on which days. The jobs that are waiting to be processed incur a holding cost depending on their priority levels. The objective is to minimize the total expected cost over a planning horizon. In this paper the focus is on a class of policies that are characterized by a set of protection levels. The role of the protection levels is to “protect” a portion of the capacity from the lower priority jobs so as to make it available for the future higher priority jobs. A stochastic approximation method to find a good set of protection levels is developed and its convergence is proved. Computational experiments indicate that protection level policies perform especially well when the coefficient of variation for the job arrivals is high. [Supplementary materials are available for this article. Go to the publisher's online edition of IIE Transactions for the following free supplemental resource: Technical appendix detailing the proofs of propositions.]

Quantile Scale Curves

A concept of scale curve based on data-depth was introduced in Liu, Parelius, and Singh. A scale curve describes the growth of a scalar (positive real-valued) scale measure of a multivariate population/data-cloud, as the distribution/data progresses center-outwardly. This article proposes a new concept for a scale curve, called the quantile scale curve, which is conceptually and computationally simpler than a data-depth based scale curve. The article focuses on the data-analytic utility of the proposed quantile scale curve, and in particular on a proposed graphical test for detecting linear and nonlinear association between two groups of variables. Other problems addressed using the concept of a quantile scale curve are exploring heavy-tailedness (via a bootscale plot), and multivariate location and scale testing. The article includes a distributional result on simplicial volumes which is of independent interest.Supplemental materials, including a technical appendix, are available online.

Paralysis Case and Contact Spread of Recombinant Vaccine–derived Poliovirus, Spain

Paralysis Case and Contact Spread of Recombinant Vaccine–derived Poliovirus, Spain

Risks for the Long Run and the Real Exchange Rate: Technical Appendix

We propose an equilibrium model that can explain a wide range of international finance puzzles, including the high correlation of international stock markets despite the lack of correlation of fundamentals. We conduct an empirical analysis of our model, which combines cross-country-correlated long-run risk with Epstein and Zin (1989) preferences, using US and UK data and show that it successfully reconciles international prices and quantities, thereby solving the international equity premium puzzle. These results provide evidence suggesting a link between common long-run growth perspectives and exchange rate movements. This technical appendix complements the paper 'Risks for the Long Run and the Real Exchange Rate'.

Worldwide Prevalence of Head Lice

To the Editor: Pediculosis capitis has been well-known since antiquity (1). Human infestation can result in psychological frustration for parents and children (2); furthermore, preventive and therapeutic practices, such as head shaving and the “no-nit” policy of excluding infected children from school, can also induce social stress. We sought to synthesize the available evidence regarding the worldwide prevalence of lice infestation in the 21st century by conducting a literature search of PubMed and Scopus databases in which we searched for the term pediculosis. We also searched Google for the terms head lice/pediculosis capitis and individual country names and evaluated references of the articles and reports retrieved through this search. Eligible studies were archived from January 1, 2000, to January 18, 2008. We retrieved 55 studies (Technical Appendix). Most studies referred to schoolchildren, but some involved refugees, urban slums, child labor, jails, orphanages, and fishing communities. Most studies had been conducted in Asia; Turkey was overrepresented. Prevalence varied from 0.7% to 59% and was higher in girls and women. Of the 29 studies, 24 involved schoolchildren; the other studies involved refugee children, child laborers, the general population, street children, jail inmates, and children accompanying their mothers in prison. In Europe, prevalence varied from 0.48% to 22.4%. However, 1 study reported a much higher annual incidence (37.4%) in England (3). A study in the Ukraine showed increasing adult representation in the overall affected population (4). Six studies involved schoolchildren; the remaining studies involved refugees, homeless persons, and the general population. Data from Africa, with the exception of 1 study in South Africa, were derived from Egypt. Prevalence varied from 0% to 58.9% and was higher in females. The study in South Africa (5) challenges the generally accepted concept that head lice infestation refers to lower socioeconomic status; of 2 schools, 1 in a low socioeconomic status area, populated by black students only, and the other in a high socioeconomic status area, populated by students of various races, head lice infestation was found only in the second school, solely among white pupils. Of 6 studies in Egypt, 4 involved diverse populations: urban poor preschool children, orphanage children, and the general population. Most studies in the Americas were conducted in Brazil, although we also found data from the United States, Cuba, and Argentina. Prevalence varied from 3.6% to 61.4% and was higher in females. Of 7 studies, 4 involved populations other than schoolchildren to some extent: urban slum residents, fishing community residents, adolescents and adults sampled randomly from the general population, elderly nursing home residents, and persons living with repeatedly infested children. A recent study in Brazil (6) noted that prevalence rates determined by visual inspection are twice that of rates determined by hair analysis. Only 1 study has been performed in Oceania. This study in Australia reported prevalence of 13% and that girls were more likely to have active infection. Our review shows that pediculosis capitis is widespread throughout the world and does not discriminate on socioeconomic status grounds. The traditional perception of head lice as a parasitosis exclusively associated with schoolchildren of low socioeconomic status is challenged by some of the reports (Technical Appendix). Most studies underestimate overall prevalence by assessing it in a specific timeframe; to the contrary, head lice infestation is a dynamic process that can spread hypergeometrically in closed environments such as schools and in the community (7). The point-prevalence reported by Heukelbach et al (8) may represent a more accurate indicator. Although socioeconomic status seems to be an indicator of the magnitude of lice infestation, more specific determinants are the dynamic processes of hygienic status and overcrowding. A recent study in Turkey compared 2 neighboring villages with different socioeconomic status. The only factor that was statistically significantly related to pediculosis capitis was size of the household; >6 inhabitants was associated with increased prevalence (9). Another parameter that may indirectly influence overall prevalence and account for the leveling of the prevalence gradient between rich and poor is awareness of head lice and preventive and therapeutic practices. A study in Australia showed that although parents prefer to play a major role in prevention and treatment, they may lack insight into recent advances and dilemmas regarding these measures (10). Variations in reported prevalence were found even in data from the same country. These differences can result from surveys being conducted during different seasons, various examination techniques, reporting of active infestation or presence of nits, and potential introduction of effective pediculicides. Although head lice account for a substantial number of missed schooldays in children, among others, it is surprising that pediculosis capitis is not monitored and prevalence is not regularly reported. Although we cannot extinguish the parasite, effective monitoring and planning will enable us to limit the prevalence and distribution of this parasitosis.

Differences in tolerance for health risk to the living donor among potential donors, recipients, and transplant professionals

In organ donation, the donor, recipient, and transplant team must all accept potential health risks to the donor and any uncertainties. To gauge these risks, we surveyed general altruism and risk-taking behaviors in 112 potential donors, 111 potential recipients, and 51 transplant professionals. Next, participants indicated their risk thresholds for long-term donor hypertension, cardiovascular disease, and kidney failure that would stop them from pursuing living donation and their willingness to proceed when risks were uncertain. The three groups had similar general altruism and risk-taking behaviors. Potential donors were significantly more willing to accept greater long-term donor risks than potential recipients and transplant professionals. Moreover, these potential donors were significantly more likely to agree that living donation was acceptable when long-term donor risks were uncertain. Potential kidney donors readily accept high long-term risks, whereas potential recipients were the most averse to donor risk. Our study shows that transplant professionals facilitate the best decisions by appreciating the willingness of their patients to accept donor health risks along with their own risk tolerance.

Comments on Bona–Massó-type slicing conditions in long-term black hole evolutions

We review, without assuming symmetry, why time-independent endstates can be reached in black hole and collapse simulations, with and without excision. Generalizing earlier work in spherical symmetry, we characterize the Killing states of the Bona–Massó slicing condition with time derivative along the normals to the slice (‘BMn’) as solutions of a mixed elliptic/hyperbolic differential equation on the slice. We show numerically in spherical symmetry that these steady states can be reached as end states from typical initial data with excision but can be reached with the puncture method only if the puncture is not numerically well resolved. As pointed out in [19] the moving puncture method typically uses a shift that systematically underresolves the puncture, and thus this method becomes a type of excision. During the evolution, BMn slicings often form gauge shocks. It may be that these are not seen in current 3D simulations only through the systematic underresolution provided by the shift, although we expect that they can be avoided with some care. Finally we point out that excision with BMn as currently implemented is ill-posed and therefore not expected to converge; this can be cured. In technical appendices, we derive the equations of pure gauge systems on a fixed spacetime, and bring the BSSN/NOR equations into three-dimensional tensor form suitable for multiple coordinate patches or spherical polar coordinates.

Initiation and Use of Public Mental Health Services by Persons With Severe Mental Illness and Limited English Proficiency

Initiation and Use of Public Mental Health Services by Persons With Severe Mental Illness and Limited English Proficiency

Financial Crises and Poverty in Emerging Market Economies

This study examines the impact of the principal financial crises in emerging markets in recent years on the incidence of poverty in the countries in question. The growth impact is first identified by comparing average per capita growth in the two years prior to the crisis to that in the crisis year and the following year. The poverty impact is then measured by applying the elasticity of poverty with respect to growth. Alternative estimates consider results of surveys in the relevant periods, where available. The central estimate is that some 40 to 60 million people were placed in poverty by the financial crises affecting Mexico (1995), Thailand and Indonesia (1997), Korea and Russia (1998), Brazil (1999), and Argentina and Turkey (2001), compared with total population of 800 million in these eight countries. By far the largest impact was in Indonesia, because of the severe income decline and the large base population in poverty. Those economies with relatively better crisis management (Mexico, Thailand, Korea, Brazil, Turkey) are found as a group to have experienced considerably milder growth and poverty shocks than those with unsuccessful management (Indonesia, Russia, and Argentina). These results underscore the importance of appropriate crisis resolution for both national and international policymakers. A technical appendix examines the elasticity of poverty with respect to growth on the basis of the underlying income distribution forms, for both the Pareto and lognormal distributions. The analysis establishes for the Pareto and confirms for the lognormal that the absolute magnitude of this elasticity is positively related to the ratio of average per capita income to the poverty line threshold, and negatively related to the degree of inequality as measured by the Gini coefficient.

Review of: Philip E. Tetlock. 2005. Expert Political Judgment: How Good is it? How Can We Know?

Typically, researchers report new findings in scholarly journals and Tetlock (1998, 1999) has done so for of some part of the findings of his study. Still, Tetlock has gone beyond journal articles, turning to a book to report on his large-scale and important study. Publishing a book has allowed him to deal with issues in detail and provide a full report, to reach a larger audience, and to have a stronger impact one hopes on experts and the consumers of their services, including political leaders and the voting public. The book assaults common sense with evidence. In order to mount his assault on accepted wisdom, Tetlock spends more some 238 pages of text explaining his methods and findings, and considering and refuting many alternative explanations, and adds some 75 pages of technical appendices. The downside of this approach is that some readers may find the book too demanding. That would be a pity as his findings are important. Tetlock's book reports the results of a two-decade long study of expert predictions. He recruited 284 people whose professions included commenting or offering advice on political and economic trends. He asked them to forecast the probability that various situations would or would not occur, picking areas (geographic and substantive) within and outside their areas of expertise. In addition to eliciting forecasts, Tetlock also asked questions aimed at understanding how the forecasters came to formulate their forecasts, how they dealt with the failure of their forecasts, how they responded to contradictory information, and how they evaluated the probable accuracy of others' theories and predictions. By 2003, he had accumulated 82,361 forecasts, which provided him a database to evaluate. He then evaluated experts' predictions against outcomes, and against various alternate predictions that he derived from simple statistical procedures, from uninformed non-experts, and from well-informed non-experts.

Toward a National Ground Water Monitoring Framework

Toward a National Ground Water Monitoring Framework

Technical Appendix to Real-Business-Cycle Models and the Forecastable Movements in Output, Hours, and Consumption

This is the technical appendix to the computer simulations in the American Economic Review publication by Julio Rotemberg and Michael Woodford, Real-Business-Cycle Models and the Forecastable Movements in Output, Hours, and Consumption, 1996.

Moisture Effects of Leakages in Building Construction: Finite Element Modelling

This paper examines the effects of convective-diffusive water vapour transport through leakages in building components. The governing equation of this transport mechanism is presented together with the possibilities of its numerical solution by means of a finite element method. A case study based on a failure of a swimming pool is included in order to show application of the numerical solution and significant consequences of combined water vapour transport. General suggestions on how to avoid moisture defects in building components and building construction are presented in the final part of the paper. Details of the mathematics of the finite element modelling are presented in a technical appendix

Do self-report instruments allow meaningful comparisons across diverse population groups? Testing measurement invariance using the confirmatory factor analysis framework.

Comparative public health research makes wide use of self-report instruments. For example, research identifying and explaining health disparities across demographic strata may seek to understand the health effects of patient attitudes or private behaviors. Such personal attributes are difficult or impossible to observe directly and are often best measured by self-reports. Defensible use of self-reports in quantitative comparative research requires not only that the measured constructs have the same meaning across groups, but also that group comparisons of sample estimates (eg, means and variances) reflect true group differences and are not contaminated by group-specific attributes that are unrelated to the construct of interest. Evidence for these desirable properties of measurement instruments can be established within the confirmatory factor analysis (CFA) framework; a nested hierarchy of hypotheses is tested that addresses the cross-group invariance of the instrument's psychometric properties. By name, these hypotheses include configural, metric (or pattern), strong (or scalar), and strict factorial invariance. The CFA model and each of these hypotheses are described in nontechnical language. A worked example and technical appendices are included.

Technical Appendix for 'Frictional Wage Dispersion in Search Models: A Quantitative Assessment'

In this Technical Appendix to Hornstein, Krusell, and Violante (2006) (HKV, 2006, hereafter) we provide a detailed characterization of the search model with (1) wage shocks during employment and (2) on-the-job search outlined in Sections 6 and 7 of that paper, and we derive all of the results that are only stated in HKV (2006). In particular, we derive the expressions for our preferred measure of frictional wage inequality: the ratio of average wages to the reservation wage, or, the ‘mean-min’ wage ratio.