European Enlargement and Agro‐Food Trade

This paper investigates the level, composition, and differences in the dynamics of revealed comparative advantage and trade specialization patterns of the 12 new member states (NMS‐12) as part of the enlarged European Union 27 countries (EU‐27). The NMS‐12 are classified into four country groups: the Baltic States, the CEFTA‐5, and the Mediterranean and the Balkan regions. The empirical analysis employs a regression framework, a duration analysis, Markov transition probability matrices, and mobility indices. Trade increases with the EU enlargement and so does revealed comparative advantage in agro‐food products. There are catching‐up difficulties, as indicated by revealed comparative advantage, in higher added‐value processed products. Le présent article examine le degré, la composition et les différences de la dynamique des avantages comparatifs révélés ainsi que les caractéristiques de la spécialisation du commerce des douze nouveaux pays membres (NPM‐12) de l'Union européenne élargie (UE–27). Les 12 nouveaux pays membres sont divisés en quatre groupes: les États baltiques, les cinq pays membres de l'ALECE, la région de la Méditerranée et la région des Balkans. L'analyse empirique utilise un modèle de régression, une analyse de durée, des matrices de probabilités des transitions (Markov) et des indices de mobilité. Les échanges augmentent avec l'élargissement de l'UE tout comme les avantages comparatifs révélés des produits agroalimentaires. On observe des difficultés de rattrapage, comme l'indique l'avantage comparatif révélé, dans le cas des produits transformés à forte valeur ajoutée.     

The Role and Current Status of IFRS in the Completion of National Accounting Rules – Evidence from Croatia

Abstract

We examine the changes in Croatian accounting regulation, in the context of 2013/34/EU Directive implementation and analyse indirect effects of IFRS on national reporting regulation for non-listed companies. The main goal is to determine the level of conformity between Croatian accounting rules and IFRS as adopted by EU. Analysis shows that IFRS are used in the great extent as a source for provisions in Croatian Financial Reporting Standards (CFRS). There are only a few major differences between Croatian financial reporting standards and IFRS. However, there are a number of IFRS standards that are considered not to be relevant in the context of CFRS, as CFRS are intended to be used only by SMEs. Nevertheless, the management is permitted to use provisions and guidance from IFRS, if CFRS provisions are not applicable to a certain transaction or event.     

Intensity estimation for inhomogeneous Gibbs point process with covariates‐dependent chemical activity

Recent development of intensity estimation for inhomogeneous spatial point processes with covariates suggests that kerneling in the covariate space is a competitive intensity estimation method for inhomogeneous Poisson processes. It is not known whether this advantageous performance is still valid when the points interact. In the simplest common case, this happens, for example, when the objects presented as points have a spatial dimension. In this paper, kerneling in the covariate space is extended to Gibbs processes with covariates‐dependent chemical activity and inhibitive interactions, and the performance of the approach is studied through extensive simulation experiments. It is demonstrated that under mild assumptions on the dependence of the intensity on covariates, this approach can provide better results than the classical nonparametric method based on local smoothing in the spatial domain. In comparison with the parametric pseudo‐likelihood estimation, the nonparametric approach can be more accurate particularly when the dependence on covariates is weak or if there is uncertainty about the model or about the range of interactions. An important supplementary task is the dimension reduction of the covariate space. It is shown that the techniques based on the inverse regression, previously applied to Cox processes, are useful even when the interactions are present. © 2014 The Authors. Statistica Neerlandica © 2014 VVS.     

HOUSING DYNAMICS OVER THE BUSINESS CYCLE

Housing construction, measured by housing starts, leads GDP in a number of countries. Measured as residential investment, the lead is observed only in the United States and Canada; elsewhere, residential investment is coincident. Variants of existing theory, however, predict housing construction lagging GDP. In all countries in the sample, nominal interest rates are low ahead of GDP peaks. Introducing long‐term nominal mortgages, and an estimated process for nominal interest rates, into a standard model aligns the theory with observations on starts, as mortgages transmit nominal rates into real housing costs. Longer time to build makes residential investment cyclically coincident.     

Gender Differences in Online Customer Satisfaction: The Asymmetric and Nonlinear Effect

ABSTRACT

The article aims to determine the extent of gender-related differences in user satisfaction with websites with a focus on the asymmetric and nonlinear effects of customer satisfaction. An experiment was conducted with 15 men and 15 women who undertook a typical task (scenario) on 44 websites. Overall, 1,320 evaluations of website quality attributes were obtained and analyzed. The results reveal that men and women differ in their website quality assessment. Marketing professionals should consider their target audience's gender when designing a quality website, or even devise ways of approaching both gender groups through distinct means.     

Do Multi‐Plant Firms Reduce Misallocation? Evidence from Canadian Manufacturing

Using Canadian plant‐level data, this paper shows that, depending on the industry, the differences in the average plant‐level productivity and cross‐plant allocation of resources between multi‐plant and single‐plant firms account for 1 to 15 per cent of the industry‐level TFP. A large part of this contribution stems from more efficient cross‐plant allocation of resources, measured by the covariance between plant size and productivity, in the pool of plants in multi‐plant firms compared to the pool of plants in single‐plant firms. There is less dispersion in the marginal products of the inputs, and thus less misallocation, in industries in which multi‐plant firms account for a larger share of output. The patterns found in the cross‐plant distribution of productivity and size are also consistent with better allocative efficiency among plants in multi‐plant firms than among plants in single‐plant firms.     

Are Stocks Really Less Volatile in the Long Run?

According to conventional wisdom, annualized volatility of stock returns is lower over long horizons than over short horizons, due to mean reversion induced by return predictability. In contrast, we find that stocks are substantially more volatile over long horizons from an investor's perspective. This perspective recognizes that parameters are uncertain, even with two centuries of data, and that observable predictors imperfectly deliver the conditional expected return. Mean reversion contributes strongly to reducing long‐horizon variance but is more than offset by various uncertainties faced by the investor. The same uncertainties reduce desired stock allocations of long‐horizon investors contemplating target‐date funds.