Returns to Human Capital under the Communist Wage Grid and During the Transition to a Market Economy

Under communism, workers had their wages set according to a centrally-determined wage grid. In this paper we use new micro data on men to estimate returns to human capital under the communist wage grid and during the transition to a market economy. We use data from the Czech Republic because it is a leading transition economy in which the communist grid remained intact until the very end of the communist regime. We demonstrate that for decades the communist wage grid maintained extremely low rate of return on education, but that the return increased dramatically and equally in all ownership categories of firms during the transition. Our estimates also indicate that men's wage-experience profile was concave in both regimes and on average it did not change from the communist to the transition period. However, the de novo private firms display a more concave profile than SOEs and public administration. Contrary to earlier studies, we show that men's inter-industry wage structure changed substantially between 1989 and 1996.http://deepblue.lib.umich.edu/bitstream/2027.42/39656/3/wp272.pd

Long-time behavior of a finite volume discretization for a fourth order diffusion equation

We consider a non-standard finite-volume discretization of a strongly non-linear fourth order diffusion equation on the $d$-dimensional cube, for arbitrary $d \geq 1$. The scheme preserves two important structural properties of the equation: the first is the interpretation as a gradient flow in a mass transportation metric, and the second is an intimate relation to a linear Fokker-Planck equation. Thanks to these structural properties, the scheme possesses two discrete Lyapunov functionals. These functionals approximate the entropy and the Fisher information, respectively, and their dissipation rates converge to the optimal ones in the discrete-to-continuous limit. Using the dissipation, we derive estimates on the long-time asymptotics of the discrete solutions. Finally, we present results from numerical experiments which indicate that our discretization is able to capture significant features of the complex original dynamics, even with a rather coarse spatial resolution.Comment: 27 pages, minor change

Hitchin Functionals in N=2 Supergravity

We consider type II string theory in space-time backgrounds which admit eight supercharges and can be characterized by the existence of an SU(3) x SU(3) structure. We show that the couplings of such backgrounds strongly resemble the couplings of four-dimensional N=2 supergravities and precisely coincide with the N=2 couplings after an appropriate Kaluza-Klein reduction. Specifically we show that the moduli space of metrics admits a special Kahler geometry with Kahler potentials given by the Hitchin functionals. Furthermore we explicitly compute the N=2 version of the superpotential from the transformation law of the gravitinos, and find its N=1 counterpart.Comment: 62 pages, improved version, to appear in JHE

Pseudodifferential Weyl Calculus on (Pseudo-)Riemannian Manifolds

One can argue that on flat space $\mathbb{R}^d$ the Weyl quantization is the most natural choice and that it has the best properties (e.g. symplectic covariance, real symbols correspond to Hermitian operators). On a generic manifold, there is no distinguished quantization, and a quantization is typically defined chart-wise. Here we introduce a quantization that, we believe, has the best properties for studying natural operators on pseudo-Riemannian manifolds. It is a generalization of the Weyl quantization - we call it the balanced geodesic Weyl quantization. Among other things, we prove that it maps square integrable symbols to Hilbert-Schmidt operators, and that even (resp. odd) polynomials are mapped to even (resp. odd) differential operators. We also present a formula for the corresponding star product and give its asymptotic expansion up to the 4th order in Planck's constant.Comment: 38 pages, 2 figure