Testing for Linear and Nonlinear Granger Causality in the Stock Price-Volume Relation

Linear and nonlinear Granger causality tests are used to examine the dynamic relation between daily Dow Jones stock returns and percentage changes in New York Stock Exchange trading volume. We find evidence of significant bidirectional nonlinear causality between returns and volume. We also examine whether the nonlinear causality from volume to returns can be explained by volume serving as a proxy for information flow in the stochastic process generating stock return variance as suggested by Clark's (1973) latent common-factor model. After controlling for volatility persistence in returns, we continue to find evidence of nonlinear causality from volume to returns.     

The approximation capabilities of the minflex-Laurents,translog, and generalized Leontief forms

This paper compares the approximation capabilities of the minflex-Laurents translog and minflex generalized Leontief cost functions with their translog and generalized Leontief counterparts in Monte Carlo experiments. The minflex Laurent specifications generally provided closer approximations to underlying technical and economic parameters. Imposition of nonlinear restrictions on some of the parameters of the minflex Laurent models yielded measurable improvement in estimated elasticities of substitutions, returns to scale, and rates of technical change.The refereeing process of this paper was handled through E. Appelbaum.     

Inter-industry technology flows in the US food-processing industries

The study examines the origins of technology important to improving productivity in the food-processing industries. Technology flows were measured both by patents in patent classes closely identified with six food industries, and by a sample of significant food-processing innovations. These data are consistent with the hypothesis that interindustry technology flows are the most significant determinant of productivity improvements in the food industries. These findings solve the enigma that the food-processing industries have enjoyed rapid improvements in productivity despite making very modest investments in research and development.     

Lobbying, multisector trade, and sustainability of free‐trade agreements

Abstract.  This paper is concerned with the sustainability of free‐trade agreements (FTA). FTA sustainability is influenced by governments' valuations of political contributions, discount factors, the lobbying position of the specific‐interest groups in the intra‐industry trade sectors, and the sectoral coverage of the FTA. I find that (i) under certain conditions, the FTA under protectionist lobbying could be more sustainable than the FTA under no political pressure; (ii) the lobby‐supported FTA is more sustainable than the lobby‐opposed FTA and the FTA under no political pressure; and (iii) multisector trade enhances FTA sustainability. JEL Classification: F12, F13, F15.     

Fermentative hydrogen production in a system using anaerobic digester sludge without heat treatment as a biomass source.

Hydrogen produced from anaerobic fermentation of organic matter is a sustainable energy source. Anaerobic hydrogen-producing systems have been typically seeded with heat-treated inocula to eliminate hydrogen-consuming methanogens. This can be both energy- and economically-intensive. In this work, operational parameters were modified to determine if operating a reactor at low pH (5.5) and low SRT (10 hours) would result in a hydrogen-producing system free of methanogens using anaerobic digester sludge with no heat treatment as an inoculum. Initially, the reactor exhibited a hydrogen productivity of approximately 7.9% when fed glucose. After purging was begun with 10% CO2/90% N2, the hydrogen productivity increased to > 20% for the first day. Hydrogenotrophic methanogens then established themselves in the reactor, reducing the hydrogen productivity in the second non-purged phase by 80%. The operational controls examined were not sufficient to eliminate hydrogen-consuming methanogens for longer than approximately one week, and thus further methods must be developed.     

Trade, foreign firms and economic policy in Indonesian and Thai manufacturing

This paper first examines the rapid growth and changing composition of manufactured exports in Indonesia and Thailand, highlighting the rapid growth of office and computer machinery and electric machinery, somewhat slower growth of non-electric and transportation machinery, as well as the low growth of previously large exports of textiles apparel. Second, the important contributions of foreign multinational enterprises (MNEs) to export growth in the machinery industries, particularly in electric, office, and computing machinery, are documented. Third, the paper describes trade policies in all these industries in some detail, emphasizing how low protection was a key facilitator of rapid export growth in the MNEs that dominated the electric, office, and computing machinery industry, while high protection reduced incentives to export among MNEs in the transportation machinery industry.     

Retention of Escherichia coli in municipal sewage by means of planted soil filters in two-stage pilot plant systems.

Different types of constructed wetlands in a pilot-plant system were fed with identical municipal waste water to compare the sanitisation process in two-stage systems. With combinations of a vertical and a horizontal flow filter an E. coli reduction of 5 log10 with an E. coli influent concentration of 10(7) MPN/100 ml was achieved. Using different filter materials in each stage the total performance of the two-stage system was independent from the sequence of these materials. However, using coarser filter material in the first stage makes the filter less prone to clogging and is thus the preferential option with regard to operational reliability.     

Lessons learnt from 15 years of ICA in anaerobic digesters.

Anaerobic digestion plants are highly efficient wastewater treatment processes with inherent energy production. Despite these advantages, many industries are still reluctant to use them because of their instability confronted with changes in operating conditions. There is therefore great potential for application of instrumentation, control and automation (ICA) in the field of anaerobic digestion. This paper will discuss the requirements (in terms of on-line sensors needed, modelling efforts and mathematical complexity) but also the advantages and drawbacks of different control strategies that have been applied to AD high rate processes over the last 15 years.     

Dynamical modelling of an activated sludge system of a petrochemical plant operating at high temperatures.

The Mexican petrochemical industry, Morelos S.A. de C.V., is one of the biggest and more important petroleum industries in Mexico and Latin America. It has an activated sludge system to treat its wastewater flow, which is approximately 7,000 m3/d. The wastewater contains volatile organic carbon substances classified as toxics. The old surface aeration system was changed for fine bubble diffusers; however, one major drawback of the new aeration system is that the temperature in the bioreactor has increased due to the compression of the air, which at the compressor exit reaches 85 degrees C. This effect results in the temperature in the bioreactor attaining 32 degrees C during the fall, whereas in the spring and summer, the bioreactor temperature reaches higher values than 40 degrees C. The high temperatures reduce the microorganism activity and cause a higher volatilisation rate of volatile compounds, among other effects, which affect the performance of the biological treatment. This work was performed to obtain a better modelling of the wastewater treatment from the petrochemical industry. The model describes the effect of the temperature on the performance of the biological treatment. The model was obtained from tests that were carried out in laboratory reactors with 14 L capacity, which were operated at different temperatures (from 30 to 45 degrees C), with the same wastewater and conditions as the actual system.