An exchange algorithm for computing the least quartile difference estimator

We propose an exchange algorithm (EA) for computing the least quartile difference estimate in a multiple linear regression model. Empirical results suggest that the EA is faster and more accurate than the usual p-subset algorithm.     

Growth and the current account: Malaysia and Singapore

A foreign trade model is estimated for two South East Asian countries, selected because they represent two extremes as far as the current account balance is concerned—Malaysia, deficit, Singapore, surplus. The specification highlights, (a) the simultaneous interdependence of exports and import flows—a result of what Krugman [1995] denotes as the slicing up of the production process—and, (b) the impact of investment on imports as a result of productivity shocks on the current account. The estimation results point to the instability of the market for foreign exchange. Using an intertemporal framework, a methodology to derive the external long run equilibrium is applied to the estimated model. The implied constraint on domestic growth turns out to be mild. This research has been financed by the Dgicyt under grant PB94-1502, and the Junta de C. y L. under grant SA 35/97. The comments and suggestions of the editor of the journal and an anonymous referee are gratefully acknowledged. The paper has also benefited from the comments of the participants at the Fifty-First International Atlantic Economic Conference, March 13–20, 2001, Athens, Greece, and at the AEA conference on New Financial Instruments and Emerging Markets, Paris, 1998. Any possible remaining errors are the authors.     

Environmental factors affecting European and Central Asian health-systems’ bias-corrected efficiency

Health expenditures comprise a large part of national incomes, which explains the growing interest of government agencies in establishing efficient control and management policies in the current context of economic difficulties. One of the main problems in efficiency analysis is to determine the environmental variables that have an impact on the production process. In particular, employing data on the European and Central Asian health systems, the article demonstrates that bias corrected Data Envelopment Analysis is most appropriate measuring efficiency than traditional Data Envelopment Analysis. Bias correction, implies a higher potential resources reduction, affects the ranking of health systems and allows variables influencing efficiency which would be undiscovered with non-corrected estimation. The second stage determines that lifestyle factors, policy organization and location of countries affect the efficiency results and cause differences among the countries. The contribution of these results is particularly useful facing the decision making by governments. Their strategies should be oriented to implementing active policies to struggle against smoking and promoting health policies aimed at increasing the level of immunization in order to be more effective improving management efficiency.     

Econometric estimation of a variable rate of depreciation of the capital stock

Measuring the capital stock is crucial in some fields of economic research. Capital stock is not observable, though, and its estimation requires the knowledge of its rate of depreciation. In most cases, econometric regressions are not used for this task. However, this methodology could be used to estimate capital stock values which are consistent with the technology of the economy. If we assume that the depreciation rate is not constant, its estimation poses some additional technical difficulties. In this paper we suggest a method to estimate a variable rate of depreciation which is shown to have wide empirical applicability and some computational advantages. Also, this method is easily implementable in standard packages by means of NLS or ML. The formalization of this method, and empirical evidence and simulation exercises based on its implementation are presented.First version received: October 2002/Final version received: May 2004All correspondence to José A. Hernandez. We would like to thank to the University of Las Palmas project uni2002/14 for financial support and two anonymous referees for helpful comments.     

Projection of input–output tables by means of mathematical programming based on the hypothesis of stable structural evolution

The high costs involved in the construction of input–output tables (IOTs) using survey methods, makes the development of mathematical projection techniques attractive. An adjustment and projection method of IOTs, based on mathematical programming techniques, is proposed here. The flexibility and ability to include information on elements and aggregates is one of this method's main advantages over alternative adjustment methods. Among the information included in the adjustment, the most relevant is related to the evolution hypothesis of the production structure under stable conditions. This leads to the inclusion of intervals for coefficients. A set of adjusted tables, consistent with their own internal structure, is obtained after an interactive and iterative process that reconciles all information sources. A projection of IOTs in Spain for the period 1995–1998 is undertaken to examine the accuracy of the method.     

A Law of Large Numbers: Bidding and Compulsory Competitive Tendering for Refuse Collection Contracts

In this paper we investigate the relationship betweencosts and number of bidders for U.K. local authorities'refuse collection contracts. We find that a highernumber of bids is associated with a lower cost ofservice. This finding, as well as being an importantempirical verification of standard proposition inauction theory, has important policy implications. TheU.K. Labour government elected in 1997 has abolishedCompulsory Competitive Tendering (CCT). Our findingsindicate that this would increase local authorities'expenditure in refuse collection.     

Technical efficiency in farming: a meta-regression analysis

A meta-regression analysis including 167 farm level technical efficiency (TE) studies of developing and developed countries was undertaken. The econometric results suggest that stochastic frontier models generate lower mean TE (MTE) estimates than non-parametric deterministic models, while parametric deterministic frontier models yield lower estimates than the stochastic approach. The primal approach is the most common technological representation. In addition, frontier models based on cross-sectional data produce lower estimates than those based on panel data whereas the relationship between functional form and MTE is inconclusive. On average, studies for animal production show a higher MTE than crop farming. The results also suggest that the studies for countries in Western Europe and Oceania present, on average, the highest levels of MTE among all regions after accounting for various methodological features. In contrast, studies for Eastern European countries exhibit the lowest estimate followed by those from Asian, African, Latin American, and North American countries. Additional analysis reveals that MTEs are positively and significantly related to the average income of the countries in the data set but this pattern is broken by the upper middle income group which displays the lowest MTE.