Statistical Inferences for Polarity Identification in Natural Language

Information forms the basis for all human behavior, including the ubiquitous decision-making that people constantly perform in their every day lives. It is thus the mission of researchers to understand how humans process information to reach decisions. In order to facilitate this task, this work proposes a novel method of studying the reception of granular expressions in natural language. The approach utilizes LASSO regularization as a statistical tool to extract decisive words from textual content and draw statistical inferences based on the correspondence between the occurrences of words and an exogenous response variable. Accordingly, the method immediately suggests significant implications for social sciences and Information Systems research: everyone can now identify text segments and word choices that are statistically relevant to authors or readers and, based on this knowledge, test hypotheses from behavioral research. We demonstrate the contribution of our method by examining how authors communicate subjective information through narrative materials. This allows us to answer the question of which words to choose when communicating negative information. On the other hand, we show that investors trade not only upon facts in financial disclosures but are distracted by filler words and non-informative language. Practitioners - for example those in the fields of investor communications or marketing - can exploit our insights to enhance their writings based on the true perception of word choice

Tax-Benefit Systems in Europe and the US: Between Equity and Efficiency

Whether observed di¤erences in redistributive policies across countries are the result of di¤erences in social preferences or e¢ ciency constraints is an important question that paves the debate about the optimality of welfare regimes. To shed new light on this question, we estimate labor supply elasticities on microdata and adopt an inverted optimal tax approach to characterize the redistributive preferences embodied in the welfare systems of 17 EU countries and the US. Implicit social welfare functions are broadly compatible with the ?ction of an optimizing Paretian social planner. Some exceptions due to generous demogrant transfers are consistent with the ignorance of behavioral responses by some European governments and are partly corrected by recent policy developments. Heterogeneity in leisure-consumption preferences somewhat a¤ect the international comparison in degrees of revealed inequality aversion, but di¤erences in social preferences are signi?cant only between broad groups of countries.social preferences; redistribution; optimal income taxation; labor supply

Tax-Benefit Systems in Europe and the US: Between Equity and Efficiency

Whether observed differences in redistributive policies across countries are the result of differences in social preferences or efficiency constraints is an important question that paves the debate about the optimality of welfare regimes. To shed new light on this question, we estimate labor supply elasticities on microdata and adopt an inverted optimal tax approach to characterize the redistributive preferences embodied in the welfare systems of 17 EU countries and the US. Implicit social welfare functions are broadly compatible with the fi…ction of an optimizing Paretian social planner. Some exceptions due to generous demogrant transfers are consistent with the ignorance of behavioral responses by some European governments and are partly corrected by recent policy developments. Heterogeneity in leisure-consumption preferences somewhat affect the international comparison in degrees of revealed inequality aversion, but differences in social preferences are signifi…cant only between broad groups of countries.Social preferences, redistribution, optimal income taxation, labor supply

Equality of Opportunity and Redistribution in Europe

The concept of equality of opportunity (EOp) goes back to Roemer (1993, 1998) who argues that a society shall guarantee its members equal access to advantage regardless of their circumstances, while holding them responsible for turning that access into actual advantage by the application of effort. Such arguments have been on the political agenda across the European Union, where the recent enlargements have brought together countries with rather different economic, social, and political backgrounds. This paper investigates how family background influences income acquisition in 15 European countries. It also scrutinizes how governments affect EOp through the design of their tax and transfer schemes. Our overall results suggest that the link between family background and economic success is usually tighter in relatively poor countries than in rich countries. Moreover, we find a clear country clustering for the Scandinavian, the Continental European, and the Anglo-Saxon countries. For Eastern Europe, our results are less definite. Looking at the impact of the tax and benefit schemes in the EU, it can be concluded that both taxes and transfers reduce inequality of opportunities, with social benefits typically playing the key role. Furthermore, the equalizing impacts of the tax benefit system on inequality of opportunity differ substantially from the ones observed when referring to the traditional notion of inequality of outcomes.equality of opportunity, inequality, redistribution

Theoretical and Computational Basis for CATNETS - Annual Report Year 3

In this document the developments in defining the computational and theoretical framework for economical resource allocation are described. Accordingly the formal specification of the market mechanisms, bidding strategies of the involved agents and the integration of the market mechanisms into the simulator were refined. --Grid Computing

Tax-Benefit Systems in Europe and the US: Between Equity and Efficiency

Whether observed differences in redistributive policies across countries are the result of differences in social preferences or efficiency constraints is an important question that paves the debate about the optimality of welfare regimes. To shed new light on this question, we estimate labor supply elasticities on microdata and adopt an inverted optimal tax approach to characterize the redistributive preferences embodied in the welfare systems of 17 EU countries and the US. Implicit social welfare functions are broadly compatible with the fiction of an optimizing Paretian social planner. Some exceptions due to generous demogrant transfers are consistent with the ignorance of behavioral responses by some European governments and are partly corrected by recent policy developments. Heterogeneity in leisure-consumption preferences somewhat affect the international comparison in degrees of revealed inequality aversion, but differences in social preferences are significant only between broad groups of countries.social preferences, redistribution, optimal income taxation, labor supply

On the influence of pheromone updates in ACO algorithms

The runtime analysis of randomized search heuristics is a growing field where, in the last two decades, many rigorous results have been obtained. These results, however, apply particularly to classical search heuristics such as Evolutionary Algorithms (EAs) and Simulated Annealing. First runtime analyses of modern search heuristics have been conducted only recently w. r. t. a simple Ant Colony Optimization (ACO) algorithm called 1-ANT. In particular, the influence of the evaporation factor in the pheromone update mechanism and the robustness of this parameter w. r. t. the runtime have been determined for the example function OneMax. This paper puts forward the runtime analysis of the 1-ANT on example functions. With respect to EAs, such analyses have been essential to develop methods for the analysis on more complicated problems. The proof techniques required for the 1-ANT, unfortunately, differ significantly from those for EAs, which means that a new reservoir of methods has to be built up. Again, the influence of the evaporation factor is analyzed rigorously, and it is proved that its choice can be very crucial to allow efficient runtimes. Moreover, the analyses provide insight into the working principles of ACO algorithms and, in terms of their robustness, describe essential differences to other randomized search heuristics