Virginia's Revenue Forecasting Process and Models

In Virginia, major differences between revenue forecasts and actual revenue collections raised questions from legislators about the adequacy of the state's econometric forecasting models and the forecasting process itself. Consequently, Virginia's process and models were examined by the Joint Legislative Audit and Review Commission (JLARC), a legislative watchdog agency. The review found most of the differences could be attributed to declining economic factors and not poor forecasting. However, a surprisingly large component of the forecast was based on undocumented judgmental inputs that required greater oversight. Other states in similar circumstances may wish to evaluate their own forecasting process and econometric models using the JLARC approach.     

Weakening partisanship and the higher educated in Britain

Abstract. The decline in support for traditional political parties in a number of Western democracies is often attributed to the effects of recent educational expansion and a consequent rise in cognitive mobilisation in the electorate. The thesis that support for the two major parties in Britain is lowest among the young educated is tested here, using survey data for the period 1964–1983. The analysis indicates that for only a short time in the early 1970s was there evidence of such a relationship, and that differences in major-party support which are related to age and to educational achievement have all but disappeared by the 1980s. Moreover, the findings cast serious doubt upon the validity of current operationalisations of 'cognitive mobilisation'.     

A multinominal logit analysis of the influence of policy variables and board experience on FOMC voting behavior

Previous studies have used probit or logit models to analyze two states of monetary policy (tighter or looser). In this paper we employ multinominal logit to permit Federal Reserve monetary policy to assume one of three alternative states (tighter, looser, or no change) as a function of three independent economic variables (unemployment, real growth, and inflation) and the amount of experience of the Board of Governors. The results indicate that the Federal Reserve reacted differently under Burns, Miller and Volcker and between Volcker's two operating procedures in the formulation of monetary policy.