Combining homogeneous groups of preclassified observations with application to international trade

This article proposes three methods for merging homogeneous clusters of observations that are grouped according to a pre‐existing (known) classification. This clusterwise regression problem is at the very least compelling in analyzing international trade data, where transaction prices can be grouped according to the corresponding origin–destination combination. A proper merging of these prices could simplify the analysis of the market without affecting the representativeness of the data and highlight commercial anomalies that may hide frauds. The three algorithms proposed are based on an iterative application of the F‐test and have the advantage of being extremely flexible, as they do not require to predetermine the number of final clusters, and their output depends only on a tuning parameter. Monte Carlo results show very good performances of all the procedures, whereas the application to a couple of empirical data sets proves the practical utility of the methods proposed for reducing the dimension of the market and isolating suspicious commercial behaviors.     

A case study for a new metrics for economic complexity: The Netherlands

We present a new approach for the economic analysis of countries, which we apply to the case of the Netherlands. Our study is based on a novel way to quantify exported products’ complexity and countries’ fitness which has been recently introduced in the literature. Adopting a framework in which products are clustered in sectors, we compare the different branches of the export of the Netherlands, taking into account the time evolution of their volumes, complexities and competitivenesses in the years 1995–2010. The High Tech and Life Sciences sectors share high quality products but low competitiveness; the opposite is true for Horticulture and Energy. We analyze in detail the Chemicals sector, finding a declining global complexity which is mostly driven by a shift towards products of lower quality. A growth forecast is also provided. In light of our results we suggest a differentiation in policy between the country’s self-defined industrial sectors.     

Have Standard VARS Remained Stable Since the Crisis?

Small vector autoregressions are commonly used in macroeconomics for forecasting and evaluating shock transmission. This requires VAR parameters to be stable over the evaluation and forecast sample or modeled as time‐varying. Prior work has considered whether there were sizable parameter changes in the early 1980s and in the subsequent period until the beginning of the new century. This paper conducts a similar analysis focused on the period since the recent crisis. Using a range of techniques, we provide substantial evidence against parameter stability. The evolution of the unemployment rate seems particularly different relative to its past behavior. We also evaluate alternative methods to handle parameter instability in a forecasting context. Copyright © 2016 John Wiley & Sons, Ltd.     

Setting Strategies outside a Typical Environmental Perspective Using ISO 14001 Certification

The scope of this research is to evaluate whether ISO 14001 certification could be used as a strategic vehicle for achieving objectives that are not strictly linked to a technical and operative perspective, and to determine what these objectives are. In order to find these objectives, a review of the literature was first conducted to determine what they were and seven hypotheses emerged. The hypotheses concerned the possibility of using ISO 14001 as a strategy for achieving objectives related to finance and turnover, customer satisfaction, community satisfaction, employee satisfaction, health and safety in the workplace, and growth and skills of employees. The validity of each hypothesis was tested via a survey of 164 managers of European manufacturing companies. This research produced interesting findings, some of which contradicted the findings of other research, in particular for financial and turnover objectives. In addition, the research revealed interesting relationships between employees' skills and issues such as Design for the Environment and Sustainability. Furthermore, some limitations of ISO 14001 with respect to the Eco‐Management and Audit Scheme regulation emerged. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

Estimating an hedonic translog cost function for the home health care industry

Medicare home health care plays an important role in providing cost effective care for the chronically ill and elderly. Long seen as a cost effective substitute for nursing home care, home care has become even more important with expenditures increasing by 31.4% from 1990 to 1996. The purpose of this paper is to provide a short run cost analysis of a sample of home health care providers to gain insight into the efficient provision of home health care services. This paper is a significant improvement over previous studies in that it uses a nationwide database to more accurately represent the multiproduct nature of the industry and uses an hedonic translog cost estimation with desirable economic properties.     

Inequality of opportunity in secondary school enrolment in Italy,Germany and the Netherlands

Aim of this work is to evaluate the overall effect of social origins on secondary school track enrolment in Italy, Germany and Netherlands, allowing for consistent cross country comparisons. Track choices are assumed to depend on student’s ability and social origins; since proficiency before tracking is not observed, ability is not kept under control. Nonetheless, the unconditional social background effect is the quantity of main substantive interest because it represents the total effect of social origins on school choices. Yet, since regression coefficients in logit models are biased even with independent unobserved heterogeneity, comparison across countries are difficult; the average sample derivative of the response probability is employed and it is showed to be a valid alternative measure of the total social origins effect. The following issue is also addressed: social origins inequality in secondary school choices may be affected by access restrictions policies, at work in some countries, where enrolment into the academic track is subject to binding school recommendations or ability tests. First, we propose a simple theoretical model and derive that the policy is expected to lower the effect of social origins conditional on ability, although the impact on the total effect can either decrease or increase. Second, by exploiting the institutional differences across German Länder with respect to enrolment policies, we carry out a preliminary empirical analysis within Germany. The main empirical findings are: (i) the total effect of social origins on track choice is weaker in the Netherlands and stronger in Germany, with Italy in between; (ii) within Germany, access restriction seem to weaken the parental background effect.     

Labor market entry and earnings dynamics: Bayesian inference using mixtures‐of‐experts Markov chain clustering

This paper analyzes patterns in the earnings development of young labor market entrants over their life cycle. We identify four distinctly different types of transition patterns between discrete earnings states in a large administrative dataset. Further, we investigate the effects of labor market conditions at the time of entry on the probability of belonging to each transition type. To estimate our statistical model we use a model‐based clustering approach. The statistical challenge in our application comes from the difficulty in extending distance‐based clustering approaches to the problem of identifying groups of similar time series in a panel of discrete‐valued time series. We use Markov chain clustering, which is an approach for clustering discrete‐valued time series obtained by observing a categorical variable with several states. This method is based on finite mixtures of first‐order time‐homogeneous Markov chain models. In order to analyze group membership we present an extension to this approach by formulating a probabilistic model for the latent group indicators within the Bayesian classification rule using a multinomial logit model. Copyright © 2011 John Wiley & Sons, Ltd.     

'LAYIN' LOW AND SAYIN' NUFFIN': AUSTRALIA'S POLICY TOWARDS BRITAIN'S SECOND BID TO JOIN THE EUROPEAN ECONOMIC COMMUNITY (1966–67)

This article examines the problems and challenges which confronted the Australian government in its response to Britain's second attempt to join the European Economic Community (EEC) in 1967. While an adequate body of literature exists on Australia's policy towards Britain's first application to the EEC (1961–63), the Australian government's response to the 1967 bid has been completely ignored by historians. This article, therefore, aims to make a historical contribution to the understanding of Australia's policy towards Britain's 'turn to Europe'.