TESTING ASSUMPTIONS MADE IN THE CONSTRUCTION OF INPUT–OUTPUT TABLES

Product input–output (IO) tables are mainly constructed on the basis of product and/or industry technology assumptions. The choice is not trivial and deserves empirical analysis using input and output data at the level of establishments. This paper offers input–output compilers econometric tests to facilitate the construction of tailored hybrid technology-based product IO tables. We provide weighted likelihood ratios of the product and industry technology assumptions. Although the proposed econometric tests are aimed to be used ex ante, we construct four variants of hybrid technology-based product IO tables using establishment data from Andalusia (Spain) and contrast them to the official product IO table and the pure product and industry technology-based tables. Our econometric tests are not valid for industry IO tables.     

Dynamic portfolio models with long-term restrictions

Summary Dynamic portfolio models have obtained a prominent place in the economic literature. As a rule, the problem of implausible long-term coefficients is ignored. In particular the long-term interest rate parameters are not in accordance with the theory of gross substitution. This shortcoming is especially serious when such a portfolio model is used as part of a larger macroeconomic model. A standard estimation-under-restriction procedure cannot be applied as these long-term coefficients are nonlinear functions of short-term interest rate coefficients and of the coefficients of the adjustment process. This paper introduces a new estimation procedure, which is used to estimate portfolio models for households and banks in The Netherlands.     

Financial Accounting Reform in Flemish Universities: An Empirical Study of the Implementation

This paper presents an overview of the current accounting reform towards accrual accounting in Flemish universities. The focus is on the concept of the reformed accounting legislation and on the empirical outcomes of implementation based on an examination of annual accounts. An important issue is the unsuccessful mixing up of the traditional budgetary accounting system with the new financial accounting system. The empirical examination reveals a lot of accounting problems in the area of the reformed regulations as well as in the accounting practices and that the comparability of the annual reporting is not guaranteed even after years of experience.     

Visualization and Analysis of Mixing Dynamical Properties in Convecting Systems with Different Rheologies

We analyzed and compared the mixing properties of 2-D mantle convection models. Two rheologically different models, Newtonian and non-Newtonian (power-law), were considered with both the line and field methods. The line method is based on monitoring of passive particles joined into lines, while the field method relies on the advection of a passive scalar field. Both visual and quantitative estimates revealed that the efficiency of the Newtonian mixing is greater than the non-Newtonian. A heterogeneity placed in the non-Newtonian convection forms horizontal structures, which may persist for at least 1 Ga on the upper-mantle scale. In addition, the non-Newtonian medium reveals a lesser amount of stretching of the lines than the Newtonian material. The rate of the Newtonian stretching fits well with an exponential dependence with time, while the non-Newtonian rheology shows the stretching rate close to a power-law dependence with time. In the Newtonian medium the heterogeneity is reorganized into two unstable vertical columns, while the non-Newtonian mixing favors horizontal structures. In the latter case, these structures are sufficiently stable in both the temporal and spatial planes to explain the mantle geochemical and geophysical heterogeneities. Due to the non-linear character of power-law rheology, the non-Newtonian medium offers a “natural” scale-dependent resistance to deformation, which prevents efficient mixing at the intermediate length scales.     

Aggregation of Productivity Indices: The Allocative Efficiency Correction

Aggregation of productivity indices is known to be consistent under very restrictive conditions only. This paper quantifies the aggregation inconsistency.