APPROXIMATIONS TO THE ASYMPTOTIC DISTRIBUTIONS OF COINTEGRATION TESTS

The asymptotic distributions of cointegration tests are approximated using the Gamma distribution. The tests considered are for the I(1), the conditional I(1), as well as the I(2) model. Formulae for the parameters of the Gamma distributions are derived from response surfaces. The resulting approximation is flexible, easy to implement and more accurate than the standard tables previously published.     

Profit Sharing, Capital Formation and the NAIRU

This paper reconsiders the impact of different remuneration systems on aggregate employment. Contrary to common wisdom on this topic, we show that the switch from a fixed wage economy to a share economy results in lower aggregate unemployment. An additional innovation of this paper is the endogeneity of the capital stock decision of the firm, which enables us to assess and reject the common "disincentive-to-invest" criticism of a share economy.     

Sustainability ‘wars’ in a New England town

A research project into large group decision-making in a New England Town Meeting surprised us with the degree to which sustainability came to be the axis around which political debate revolved. We identified two very different yet overlapping conceptions of sustainability: one emphasized fiscal responsibility; the other asserted the merits of environmental stewardship. Each of the two conceptions had proponents, with strong views about what constituted good versus bad governing practices, each with a strong sense of what was good for the town. In this paper, we sort out those meanings. We seek to understand and expose the contours of sustainability, how the discourses around sustainability enter political processes, and to shed light on ongoing debates about the form of governance best suited for a democratically inclined New England town. Methods involved both quantitative and qualitative approaches, including data collection and analysis activities that comprised four levels: (1) participant observation of the Town Meeting; (2) quantitative analysis of voting behaviors; (3) interviews with 30 of the 240 members of the Town Meeting; and (4) thematic analysis, codebook development, and coding. Finally, in the spirit of contributing to the making of a future possible world, the authors ponder the courses forward for democratic processes and the future of a town caught in a ‘pitched battle’ over the terms and stakes of sustainability.     

Is Polaris a HOG? A Case Study*

The main usefulness of a general purpose financial statement centers on its comparability to the financials produced by an entity's competition. This case works for both undergraduate and graduate students because it offers comparisons between two well known recreation industry companies. Financial statement analysis is a lesson which serves as an appropriate capstone to financial accounting education. Analyzing the financial statements of competing entities explains “why” accountants must implement the intricate “how” which produces the statements and the resulting decision models such as ratios and common‐sized statements. Compared to previous generations, current students will be more responsible for managing their own retirement funds. This case can help students start to appreciate investment analysis by providing enough detail for any level student to conduct financial statement evaluations that make comparisons to find successful fundamental business strategies.     

Econometric software development: past, present and future

We give a short international history of econometric software development, with an emphasis on the origin of the main existing econometric packages. We provide a Dutch perspective on this development. We identify the characteristics of econometric software in comparison with mathematical and statistical software. Finally, a number of recent developments connected with the reuse of code across econometric softwares are discussed.     

Distribution approximations for cointegration tests with stationary exogenous regressors

The distribution of a functional of two correlated vector‐Brownian motions is approximated by a Gamma distribution. This functional represents the limiting distribution for cointegration tests with stationary exogenous regressors, but also for cointegration tests based on a non‐Gaussian likelihood. The approximation is accurate, fast and easy to use in comparison with both tabulated critical values and simulated p‐values. The proposed procedure is applied to a UK model investigating purchasing power parity. Copyright © 2005 John Wiley & Sons, Ltd.     

Identifying, estimating and testing restricted cointegrated systems: An overview

The notion of cointegration has led to a renewed interest in the identification and estimation of structural relations among economic time series. This paper reviews the different approaches that have been put forward in the literature for identifying cointegrating relationships and imposing (possibly over-identifying) restrictions on them. Next, various algorithms to obtain (approximate) maximum likelihood estimates and likelihood ratio statistics are reviewed, with an emphasis on so-called switching algorithms. The implementation of these algorithms is discussed and illustrated using an empirical example.     

Selection versus development assessment centers: an international survey of design,execution, and evaluation

No recent survey documents differences in assessment center (AC) practices for selection and development in organizations in diverse countries. We analyze the design, execution, and evaluation of AC selection programs compared to development programs in a sample of 144 organizations in 18 countries. Our comparison identifies similarities and differences in job analysis techniques, dimensions (job requirements), observer pools, methods of assessor training, exercises and psychometric testing procedures, information provided to participants, and areas of evaluation of the program by participants. Results show important differences between selection and developmental programs which may be explained by economical, legal, and social factors. We also point out features of ACs that should be designed differently to optimize objectives.     

C-reactive protein--a screening test for coronary disease?

C-reactive protein (CRP) is one of a number of substances termed "acute phase reactants," biologic substances that appear in the circulation when an active inflammatory process occurs. Although traditionally used to monitor or detect major infectious or inflammatory conditions, elevations of CRP levels within the conventional range of "normals" has been intensively studied as a marker for coronary disease and risk of future coronary events. Sensitive assays that can be performed on a high-volume, commercial basis are now available. CRP appears to be a valuable marker for the prediction of future events in individuals who have known coronary artery disease. CRP has been proposed as a coronary disease-screening test for healthy individuals; however, available data suggest that use of CRP in this context may be premature. This paper reviews published research concerning CRP and the prediction of cardiovascular and total mortality risk, then outlines the current "state of the art" for the application of CRP to the risk assessment process.     

Perron's stability theorem for non-linear mappings

Perron's theorem on positive matrices including its stability statement is extended to non-linear mappings which need neither additive nor homogeneous nor primitive. This generalizes known results and yields in particular a concave version of Perron's theorem. The theorem may be applied to balanced growth in non-linear systems and also to obtain a dynamic non-substitution theorem for general cost functions.