Location Factors for Non-Ferrous Exploration Investments

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Location Factors for Non-Ferrous Exploration Investments"

Transcription

1 Locaton Factors for Non-Ferrous Exploraton Investments Irna Khndanova Unversty of Denver Ths paper analyzes the relatve mportance of geologcal potental and nvestment clmate for nonferrous mnerals exploraton nvestments. The analyss s based on log-lnear and truncated models of exploraton fundng wth geologcal potental and nvestment envronment as locaton factors. In order to account for countres szes, we nclude the populaton varable. Models are estmated usng the Metals Economcs Group s exploraton expendtures data, one measure of geologcal potental, and one ndcator of nvestment clmate. Our analyss shows that exploraton does not smply follow geologcal potental. The nvestment envronment plays a sgnfcant role n allocatng exploraton budgets by mnng companes. Ths result confrms that a mneral rch country cannot expect large amounts of exploraton money wthout establshng a favorable nvestment clmate. INTRODUCTION Ths paper analyzes the relatve mportance of geologcal potental and nvestment clmate for nonferrous exploraton nvestments. Many metals, coal, and uranum producng countres resort to prvate companes to explore and mne ther mneral deposts (Jara, Lagos, and Tlton, 2008). Because the mnerals projects requre lump sum nvestments under consderable uncertanty, the companes are reluctant to nvest unless they are guaranteed generous terms (Buckley, 2008). The hgh fxed costs are an mportant aspect of companes barganng power. Once the uncertanty fades away and the mnerals developments begn to operate proftably, the sgnfcant fxed costs turn nto a lablty. The companes cannot smply abandon projects f the host countres mpose harsher terms. Ths progresson s recurrng. In order to brng new nvestments or expand exstng projects, the countres have to mprove nvestment clmate and offer better condtons. However, the new deals become obsolete. Such an nteracton between natural resource nvestors and a host country Raymond Vernon (1971) descrbed as the obsolescng barganng. The obsolescng bargan model explans a cyclcal shft of barganng power from the foregn nvestor to the host country and back. Ths paper attempts to analyze how much barganng power mneral producng countres have. If publc polcy takes a good porton of any rents assocated wth new dscoveres, wll ths or wll ths not cause exploraton to move elsewhere? Fgure 1 shows how exploraton spendng vares among countres. 1 Some of the dfferences among countres are smply due to dfferences n sze what can be assocated wth land areas - mneral potental (Johnson, 1990). But large ntercountry varatons reman even after controllng for land areas, see Fgure 2. These varatons could be nfluenced by varatons n mneral nvestment polcy. The central queston then s how much of the dfferences n country exploraton nvestments are due to country dfferences n geologcal potental and to dfferences n country mneral polces? 38 Journal of Appled Busness and Economcs vol. 12(1) 2011

2 FIGURE 1 THE 2006 EXPLORATION EXPENDITURES Exploraton expendtures, mllons US$ Countres We are not aware of studes, whch conduct econometrc analyss of locaton factors of non-ferrous exploraton spendng. Our study s one of the frst attempts to model countres non-ferrous mnerals exploraton nvestments and to estmate the relatve mportance of geologcal potental and nvestment envronment. The analyss draws upon works by Johnson (1990), Eggert (1992 and 2008), Otto (1992a and 1992b), the Fraser Insttute (2006), and Jara, Lagos, and Tlton (2008). These papers pont to the two domnant groups of locaton factors of exploraton nvestments: geologcal potental and nvestment clmate. Smlarly, Dunnng (1998), Bllngton (1999), Campos and Knoshta (2003), Buckley et al (2007), and UNCTAD (2007) emphasze mportance of avalablty of natural resources and nvestment condtons for resource seekng Foregn Drect Investment. FIGURE 2 THE 2006 EXPLORATION EXPENDITURES DIVIDED BY LAND AREAS Normalzed exploraton expendtures, n US$/sq.km Countres The paper bulds two models of exploraton nvestments: log-lnear and truncated. In the models, the log-transformed exploraton expendtures are the dependent varable; geologcal potental, nvestment clmate, and populaton are explanatory varables. The populaton factor s ncluded to account for economes szes. 2 The countres exploraton nvestments data were kndly provded by the Metals Economcs Group (MEG). MEG reports exploraton expendtures of at least $100,000. It order to take nto account effects of ths truncaton, we consder a one-lmt truncated regresson model for exploraton expendtures. We estmated models usng one ndcator of geologcal potental (land areas) and one Journal of Appled Busness and Economcs vol. 12(1)

3 measure of nvestment clmate (Index of Economc Freedom of the Hertage Foundaton and the Wall Street Journal). The paper s structured as follows. The second secton descrbes the data. The thrd secton presents models of exploraton nvestments. It derves estmates of the relatve mportance of geologcal potental and nvestment clmate for exploraton spendng. The forth secton summarzes man fndngs and conclusons. DESCRIPTION AND STATISTICS OF DATA SERIES Ths secton descrbes the data on exploraton expendtures, measures of the geologcal potental and nvestment clmate, and populaton. It also presents statstcs for the data seres. Exploraton nvestments data are from the Corporate Exploraton Strateges 2006 Study of the Metals Economcs Group (MEG, 2006). The data nclude the 2006 budgets of mnng companes for exploraton of nonferrous metals and damonds. The compled seres are based on surveys of 1,624 companes, whch budgeted $100,000 or more on the 2006 exploraton. Total exploraton budgets of surveyed companes add to $7.13 bllon - approxmately 95% of worldwde exploraton nvestments (MEG, 2006). The expendtures are reported for the followng exploraton targets: gold; base metals copper, znc, lead, nckel (does not nclude alumnum); damonds; platnum; and other metals or mnerals. The MEG Corporate Exploraton Strateges Study has the 2006 exploraton data for 124 countres and regons. In our regressons analyss, we examne 103 countres. Several countres were not ncluded n the analyss manly because of lack of the nvestment clmate data for them. Total exploraton expendtures of the 103 ncluded countres consttute around 98% of the 2006 exploraton spendng of surveyed companes. Table 1 contans statstcs of exploraton expendtures for the analyzed countres. Fgure 3 shows a hstogram of the 2006 total exploraton spendng. The range of countres total exploraton nvestments s between $100,000 and $1,378 mllon. TABLE 1 STATISTICS OF THE 2006 EXPLORATION EXPENDITURES Number of countres wth exploraton Statstcs, n mllons $ (M $) expendtures n ranges ,378 Mean Max Mn St.Dev M $ M $ M $ , Fgure 3 llustrates that exploraton expendtures dffer sgnfcantly across countres: n 91 out of 103 countres total exploraton expendtures are between $100,000 and $138 mllon, whle n four countres exploraton spendng s between $139 mllon and $276 mllon, n 8 countres above $276 mllon. To reduce non-homogenety of the data, we take logarthms of the orgnal seres. Such logarthmc transformaton has been employed n an analyss of foregn drect nvestments by Bullngton, 1999; Cheng and Kwan, 2000; and We, A hstogram of the log-transformed total exploraton expendtures s also provded n Fgure 3. In our analyss, we examne one measure of geologcal potental - land areas 3. Land measures were used as ndcators of mneral and resource ndcators n Johnson, 1990; Sachs and Warner, 1995; Stjns, 2005; Brdsall et al, The data on countres land areas s from the World Bank s database World Development Indcators 2005 (World Bank, 2005). For a few countres, the land areas data are from the Central Intellgence Agency s (CIA) publcaton The World Factbook 2005 (CIA, 2005). Table 2 reports statstcs for geologcal potental and nvestment envronment ndcators. 40 Journal of Appled Busness and Economcs vol. 12(1) 2011

4 FIGURE 3 HISTOGRAMS OF THE 2006 TOTAL EXPLORATION EXPENDITURES Number of countres Number of countres More Exploraton expendtures, mllo $ Log-transformed exploraton expendtures We use one ndcator of nvestment clmate - the Index of Economc Freedom, publshed by the Hertage Foundaton and the Wall Street Journal. The ndex reflects countres economc condtons. It s calculated as an equally weghted average of scores for 10 ndcators of economc freedom: busness freedom, trade freedom, fscal freedom, government sze, monetary freedom, nvestment freedom, fnancal freedom, property rghts, freedom from corrupton, and labor freedom (Hertage Foundaton and the Wall Street Journal, 2009). The ndex values vary between 0 and 100. The hgher score ndcates economc condtons or polces more favorable to economc freedom. Values of the 2005 ndex of economc freedom reveal that New Zealand had the most favorable economc envronment among analyzed countres. Its score of economc freedom was the hghest (82.3). Angola had the lowest ndex level (24.3). The mean and the medan values of the ndex are almost the same: the mean equals 58.0 and the medan equals Bolva has the ndex value (58.4) closest to the mean. In our analyss, we use the scores of the ndex of economc freedom for the year Measures TABLE 2 STATISTICS FOR MEASURES OF GEOLOGICAL POTENTIAL AND INVESTMENT CLIMATE Land areas, n 2005, n thousand sq. km Index of Economc Freedom, 2005 Statstcs^ Mean Medan Maxmum Mnmum St. dev 1, , ,425 (Colomba) (Vetnam) (Russa) (Cyprus) (Bolva) (Tanzana) ^Below statstcs we provde names of representatve countres best score (New Zealand) 24.3 worst score (Angola) A sgnfcant dfference between the mean and medan values of land areas n Table 2 suggests a hghly skewed dstrbuton: there are only a few countres wth largest levels of land areas, whle the majorty of countres have smaller terrtores. To reduce varatons of the land areas across countres, we use logarthms of the land areas n our models. We nclude n models the populaton factor to control for countres szes. Most of the data on countres populaton s from the World Bank s database World Development Indcators 2005 (World Journal of Appled Busness and Economcs vol. 12(1)

5 Bank, 2005). For a few countres, the populaton data are from the Central Intellgence Agency s (CIA) publcaton The World Factbook 2005 (CIA, 2005). CROSS-COUNTRY MODELS OF EXPLORATION INVESTMENTS In ths part we analyze the relatve mportance of geologcal potental and nvestment clmate for exploraton spendng. We buld two models: log-lnear and truncated. In the models, the log-transformed exploraton expendtures are the dependent varable; geologcal potental, nvestment clmate, and populaton are explanatory varables. We use logarthms of exploraton expendtures to reduce ther sgnfcant varatons across countres (to reduce heteroskedastcty of models errors terms) and to model non-lnear assocatons of varables. Such logarthmc transformaton has been employed n an analyss of foregn drect nvestments by Bullngton, 1999; Cheng and Kwan, 2000; We, 2000; Buckley et al, In the models we analyze total exploraton expendtures, whch nclude exploraton expendtures by major, ntermedate, and junor mnng companes. Log-Lnear Model of Exploraton Investments In ths secton we estmate the log-lnear model of exploraton nvestments: lexploraton c b1 geology b2nvestment b3lpopulaton, (1) where lexploraton s the log-transformed total exploraton expendtures, lexploraton = ln(exploraton ), exploraton s the total exploraton expendtures (ncludes exploraton expendtures of major, ntermedate, and junor mnng companes); geology s the geologcal potental ndcator; nvestment s the nvestment clmate ndcator, lpopulaton s the log-transformed populaton, lpopulaton ln(populaton ), N[0, 2 ], denotes a country, geologcal potental (log-transformed land areas lland) and one nvestment clmate ndcator (the ndex of economc freedom - econfreedom): Regresson 1: lexploraton c b1 lland b2econfreedom b3 lpopulaton Regresson 1 results are reported n Table 3. The adjusted R 2 value of 0.48 n Regresson 1 s relatvely hgh for cross-country models. In Regresson 1, coeffcents of geologcal potental (land areas) and nvestment clmate (ndex of economc freedom) have expected postve sgns and are sgnfcant. The geologcal potental coeffcent mples that, f geologcal potental mproves by 1%, then exploraton nvestments grow by1.01%. The nvestment clmate coeffcent shows that, f the ndex of economc freedom goes up by 10 unts, then exploraton nvestments rse by 0.31%. For example, f Russa s score of the 2005 ndex of economc freedom were at the Bulgara s ndex level of 62.3, Russa could have seen an exploraton spendng ncrease of about 0.31%. Truncated Model of Exploraton Investments MEG reports exploraton expendtures of at least $100,000. In order to take nto account ths truncaton 4, we estmate a one-lmt truncated regresson model: lexploraton * b' (2) X lexploraton = lexploraton * f lexploraton * > -2.3 (exploraton * > $100,000), 42 Journal of Appled Busness and Economcs vol. 12(1) 2011

6 where exploraton * s the latent exploraton expendtures varable, lexploraton * s log-transformed latent exploraton expendtures, lexploraton * exploraton *), lexploraton exploraton ), exploraton s a truncated (observed) exploraton expendtures varable, X s a vector of explanatory varables, X geology, nvestment, lpopulaton ), geology s an geologcal potental ndcator, nvestment s an nvestment clmate ndcator, denotes country, N[0, 2 ], We estmate model (2) for one measure of geologcal potental and one measure of nvestment clmate: geology = lland, nvestment = econfreedom. Regresson 2: lexploraton * econfreedom lpopulaton. c b1lland b2 Maxmum lkelhood estmaton results for Regresson 2 are gven n Table 3. Magntudes of coeffcents of explanatory varables and the sgnfcance statstcs n regressons 1 and 2 are close. It appears that truncaton at $100,000 does not sgnfcantly change mportance of geologcal potental and nvestment envronment for exploraton nvestments, comparng to model (1). TABLE 3 ESTIMATION RESULTS FOR THE LOG-LINEAR MODEL (1) AND THE TRUNCATED MODEL (2) Model 1* Model 2** Varables Constant (-7.750) (-7.187) lland (7.966) (7.941) econfreedom (2.210) (2.214) lpopulaton (-1.390) (-1.160) Adjusted R Log-lkelhood * t-statstcs of the model (1) coeffcents estmates are gven n parentheses. The t-statstcs were derved usng the Whte heteroskedaststy consstent standard errors. ** z- statstcs of the model (2) coeffcents estmates are gven n parentheses. The z- statstcs are derved usng the Huber/Whte standard errors CONCLUSIONS Ths work studes varatons n countres non-ferrous mnerals exploraton nvestments. It also analyzes the relatve mportance of geologcal potental and nvestment clmate for attractng exploraton fundng. The analyss s performed usng cross-country models of exploraton nvestments. We construct two models of exploraton expendtures: log-lnear and truncated. In the models we consder two locaton factors: geologcal potental and nvestment clmate. An estmaton of models s based on the Metals Economcs Group s exploraton expendtures data, one measure of geologcal potental, and one ndcator of nvestment clmate. The models quantfy the relatve mportance of geologcal potental and nvestment clmate and show that both factors nfluence exploraton fundng. Exploraton does not smply follow geologcal potental. In order to attract exploraton nvestments, countres rch wth natural resources need to work on formng compettve nvestment envronments. Journal of Appled Busness and Economcs vol. 12(1)

7 The performed study s based on the exploraton expendtures n one year In a follow-up paper we wll look at changes of the countres exploraton nvestments over tme and factors leadng to these changes. ENDNOTES 1. The horzontal axs of Fgure 1 shows countres by ther numbers n our sample. 2. We estmated a model wth an nteracton term between geologcal potental and nvestment clmate to test whether sgnfcance of geologcal potental for exploraton nvestments depends on nvestment envronment. We found that the nteracton term was an nsgnfcant factor. 3. We do not consder mneral reserves estmates as measures of the geologcal potental because of lack of the data for some analyzed countres. Another measure of geologcal potental s the Fraser Insttute ndex of mneral potental (Fraser Insttute, 2006). In 2006, the ndex covered only 36 countres. For ths reason, we do not use the Fraser Insttute ndex of mneral potental. 4. Truncaton results n lower varance than the varance on the orgnal varable. Truncaton from below, as n our sample, produces the hgher mean than the mean of the orgnal varable. REFERENCES Bllngton, N. (1999). The Locaton of Foregn Drect Investment: An Emprcal Analyss. Appled Economcs, 31, Brdsall, N., Pnkney, T. & R. Sabot, R. (2001). Natural Resources, Human Captal, and Growth. Resource Abundance and Economc Growth, R. Auty ed., Oxford Unversty Press. Buckley, P.J. (2008). Do We Need a Specal Theory of Foregn Drect Investment for Extractve Industres? Journal of Chnese Economc and Foregn Trade Studes, 1, (2), Zheng, P. (2007). The Determnants of Chnese Outward Foregn Drect Investment. Journal of Internatonal Busness Studes, 38, Campos, N. F. & Knoshta, Y. (2003). Why Does FDI Go Where t Goes? New Evdence from the Transton Economes. IMF Workng Paper, WP/03/28. Central Intellgence Agency. (2005). The World Factbook Washngton, DC, Cheng, L. K. & Kwan, Y.K. (2000). What Are the Determnants of the Locaton of Foregn Drect Investment? The Chnese Experence. Journal of Internatonal Economcs, 51, Dunnng, J. H. (1998). Locaton and the multnatonal enterprse: a neglected factor. Journal of Internatonal Busness Studes, 29, (1), Eggert, R.G. (1992). Exploraton. In: Peck, M.J., Landsberg H.H., Tlton, J.E. (Eds), Compettveness n Metals the Impact of Publc Polcy. London: Mnng Journal Books, Eggert, R. G. (2008). Trends n Mneral Economcs: Edtoral Retrospectve, Resources Polcy, 33, 1-3. Fraser Insttute. (2006). Survey of Mnng Companes: 2005/2006, Vancouver, Canada. 44 Journal of Appled Busness and Economcs vol. 12(1) 2011

8 Hertage Foundaton and Wall Street Journal. (2009) Index of Economc Freedom, Washngton, DC. Jara J.J., Lagos, G. & Tlton, J.E. (2008). Usng Exploraton Expendtures to Assess the Clmate for Mneral Investment. Resources Polcy 33, Johnson, C. J. (1990). Rankng Countres for Mnerals Exploraton. Natural Resources Forum, August 1990, Metals Economcs Group. (2006). Corporate Exploraton Strateges 2006, Halfax, Canada. Otto, J. M. (1992a). Results of a Survey of Mneral Investment Preferences. Mneral Investment Condtons n Selected Countres of the Asa-Pacfc Regon, Unted Natons, Otto, J. M. (1992b). Crtera for Assessng Mneral Investment Condtons, Mneral Investment Condtons n Selected Countres of the Asa-Pacfc Regon, Unted Natons, 1992, Sachs, J. D. & Warner, A.M. (1995). Natural Resource Abundance and Economc Growth, NBER Workng Paper Seres, Workng Paper 5398, Cambrdge, Massachusetts. Stjns, J.-P. C. (2005). Natural Resource Abundance and Economc Growth Revsted. Resource Polcy, 30, Unted Natons Conference on Trade and Development (UNCTAD). (2007). World Investment Report: Transnatonal Corporatons, Extractve Industres and Development. Vernon, R. (1971). Soveregnty at Bay, Harmondsworth: Pengun. We, S.-J. (2000). How Taxng s Corrupton on Internatonal Investors? The Revew of Economcs and Statstcs, 82(1), World Bank. (2005). World Development Indcators Journal of Appled Busness and Economcs vol. 12(1)

Exploration funding and the mineral investment climate

Exploration funding and the mineral investment climate ABSTRACT Exploraton fundng and the mneral nvestment clmate Irna Khndanova Unversty of Denver Ths study analyzes how senstve exploraton fundng s to nvestment clmate changes. The paper conducts a separate

More information

Can Auto Liability Insurance Purchases Signal Risk Attitude?

Can Auto Liability Insurance Purchases Signal Risk Attitude? Internatonal Journal of Busness and Economcs, 2011, Vol. 10, No. 2, 159-164 Can Auto Lablty Insurance Purchases Sgnal Rsk Atttude? Chu-Shu L Department of Internatonal Busness, Asa Unversty, Tawan Sheng-Chang

More information

Study on CET4 Marks in China s Graded English Teaching

Study on CET4 Marks in China s Graded English Teaching Study on CET4 Marks n Chna s Graded Englsh Teachng CHE We College of Foregn Studes, Shandong Insttute of Busness and Technology, P.R.Chna, 264005 Abstract: Ths paper deploys Logt model, and decomposes

More information

Analysis of Premium Liabilities for Australian Lines of Business

Analysis of Premium Liabilities for Australian Lines of Business Summary of Analyss of Premum Labltes for Australan Lnes of Busness Emly Tao Honours Research Paper, The Unversty of Melbourne Emly Tao Acknowledgements I am grateful to the Australan Prudental Regulaton

More information

Macro Factors and Volatility of Treasury Bond Returns

Macro Factors and Volatility of Treasury Bond Returns Macro Factors and Volatlty of Treasury Bond Returns Jngzh Huang Department of Fnance Smeal Colleage of Busness Pennsylvana State Unversty Unversty Park, PA 16802, U.S.A. Le Lu School of Fnance Shangha

More information

Evaluating the Effects of FUNDEF on Wages and Test Scores in Brazil *

Evaluating the Effects of FUNDEF on Wages and Test Scores in Brazil * Evaluatng the Effects of FUNDEF on Wages and Test Scores n Brazl * Naérco Menezes-Flho Elane Pazello Unversty of São Paulo Abstract In ths paper we nvestgate the effects of the 1998 reform n the fundng

More information

Answer: A). There is a flatter IS curve in the high MPC economy. Original LM LM after increase in M. IS curve for low MPC economy

Answer: A). There is a flatter IS curve in the high MPC economy. Original LM LM after increase in M. IS curve for low MPC economy 4.02 Quz Solutons Fall 2004 Multple-Choce Questons (30/00 ponts) Please, crcle the correct answer for each of the followng 0 multple-choce questons. For each queston, only one of the answers s correct.

More information

The impact of hard discount control mechanism on the discount volatility of UK closed-end funds

The impact of hard discount control mechanism on the discount volatility of UK closed-end funds Investment Management and Fnancal Innovatons, Volume 10, Issue 3, 2013 Ahmed F. Salhn (Egypt) The mpact of hard dscount control mechansm on the dscount volatlty of UK closed-end funds Abstract The mpact

More information

Overview of monitoring and evaluation

Overview of monitoring and evaluation 540 Toolkt to Combat Traffckng n Persons Tool 10.1 Overvew of montorng and evaluaton Overvew Ths tool brefly descrbes both montorng and evaluaton, and the dstncton between the two. What s montorng? Montorng

More information

THE DETERMINANTS OF THE TUNISIAN BANKING INDUSTRY PROFITABILITY: PANEL EVIDENCE

THE DETERMINANTS OF THE TUNISIAN BANKING INDUSTRY PROFITABILITY: PANEL EVIDENCE THE DETERMINANTS OF THE TUNISIAN BANKING INDUSTRY PROFITABILITY: PANEL EVIDENCE Samy Ben Naceur ERF Research Fellow Department of Fnance Unversté Lbre de Tuns Avenue Khéreddne Pacha, 002 Tuns Emal : sbennaceur@eudoramal.com

More information

Economies of Scale in Hong Kong s Banking Industry

Economies of Scale in Hong Kong s Banking Industry 2014 年 2 月第十七卷一期 Vol. 17, No. 1, February 2014 Economes of Scale n Hong Kong s Banng Industry Agol Ho http://cmr.ba.ouh.edu.h Web Journal of Chnese Management Revew Vol 17 No 1 1 Economes of Scale n Hong

More information

Risk Model of Long-Term Production Scheduling in Open Pit Gold Mining

Risk Model of Long-Term Production Scheduling in Open Pit Gold Mining Rsk Model of Long-Term Producton Schedulng n Open Pt Gold Mnng R Halatchev 1 and P Lever 2 ABSTRACT Open pt gold mnng s an mportant sector of the Australan mnng ndustry. It uses large amounts of nvestments,

More information

DO LOSS FIRMS MANAGE EARNINGS AROUND SEASONED EQUITY OFFERINGS?

DO LOSS FIRMS MANAGE EARNINGS AROUND SEASONED EQUITY OFFERINGS? DO LOSS FIRMS MANAGE EARNINGS AROUND SEASONED EQUITY OFFERINGS? Fernando Comran, Unversty of San Francsco, School of Management, 2130 Fulton Street, CA 94117, Unted States, fcomran@usfca.edu Tatana Fedyk,

More information

Gender differences in revealed risk taking: evidence from mutual fund investors

Gender differences in revealed risk taking: evidence from mutual fund investors Economcs Letters 76 (2002) 151 158 www.elsever.com/ locate/ econbase Gender dfferences n revealed rsk takng: evdence from mutual fund nvestors a b c, * Peggy D. Dwyer, James H. Glkeson, John A. Lst a Unversty

More information

The DAX and the Dollar: The Economic Exchange Rate Exposure of German Corporations

The DAX and the Dollar: The Economic Exchange Rate Exposure of German Corporations The DAX and the Dollar: The Economc Exchange Rate Exposure of German Corporatons Martn Glaum *, Marko Brunner **, Holger Hmmel *** Ths paper examnes the economc exposure of German corporatons to changes

More information

Causal, Explanatory Forecasting. Analysis. Regression Analysis. Simple Linear Regression. Which is Independent? Forecasting

Causal, Explanatory Forecasting. Analysis. Regression Analysis. Simple Linear Regression. Which is Independent? Forecasting Causal, Explanatory Forecastng Assumes cause-and-effect relatonshp between system nputs and ts output Forecastng wth Regresson Analyss Rchard S. Barr Inputs System Cause + Effect Relatonshp The job of

More information

PRIVATE SCHOOL CHOICE: THE EFFECTS OF RELIGIOUS AFFILIATION AND PARTICIPATION

PRIVATE SCHOOL CHOICE: THE EFFECTS OF RELIGIOUS AFFILIATION AND PARTICIPATION PRIVATE SCHOOL CHOICE: THE EFFECTS OF RELIIOUS AFFILIATION AND PARTICIPATION Danny Cohen-Zada Department of Economcs, Ben-uron Unversty, Beer-Sheva 84105, Israel Wllam Sander Department of Economcs, DePaul

More information

THE TITANIC SHIPWRECK: WHO WAS

THE TITANIC SHIPWRECK: WHO WAS THE TITANIC SHIPWRECK: WHO WAS MOST LIKELY TO SURVIVE? A STATISTICAL ANALYSIS Ths paper examnes the probablty of survvng the Ttanc shpwreck usng lmted dependent varable regresson analyss. Ths appled analyss

More information

High Correlation between Net Promoter Score and the Development of Consumers' Willingness to Pay (Empirical Evidence from European Mobile Markets)

High Correlation between Net Promoter Score and the Development of Consumers' Willingness to Pay (Empirical Evidence from European Mobile Markets) Hgh Correlaton between et Promoter Score and the Development of Consumers' Wllngness to Pay (Emprcal Evdence from European Moble Marets Ths paper shows that the correlaton between the et Promoter Score

More information

Two Faces of Intra-Industry Information Transfers: Evidence from Management Earnings and Revenue Forecasts

Two Faces of Intra-Industry Information Transfers: Evidence from Management Earnings and Revenue Forecasts Two Faces of Intra-Industry Informaton Transfers: Evdence from Management Earnngs and Revenue Forecasts Yongtae Km Leavey School of Busness Santa Clara Unversty Santa Clara, CA 95053-0380 TEL: (408) 554-4667,

More information

Staff Paper. Farm Savings Accounts: Examining Income Variability, Eligibility, and Benefits. Brent Gloy, Eddy LaDue, and Charles Cuykendall

Staff Paper. Farm Savings Accounts: Examining Income Variability, Eligibility, and Benefits. Brent Gloy, Eddy LaDue, and Charles Cuykendall SP 2005-02 August 2005 Staff Paper Department of Appled Economcs and Management Cornell Unversty, Ithaca, New York 14853-7801 USA Farm Savngs Accounts: Examnng Income Varablty, Elgblty, and Benefts Brent

More information

Quality Adjustment of Second-hand Motor Vehicle Application of Hedonic Approach in Hong Kong s Consumer Price Index

Quality Adjustment of Second-hand Motor Vehicle Application of Hedonic Approach in Hong Kong s Consumer Price Index Qualty Adustment of Second-hand Motor Vehcle Applcaton of Hedonc Approach n Hong Kong s Consumer Prce Index Prepared for the 14 th Meetng of the Ottawa Group on Prce Indces 20 22 May 2015, Tokyo, Japan

More information

Ethnic Chinese Networking in Cross-border Investment: The Impact of Economic and Institutional Development. Abstract:

Ethnic Chinese Networking in Cross-border Investment: The Impact of Economic and Institutional Development. Abstract: Ethnc Chnese Networkng n Cross-border Investment: The Impact of Economc and Insttutonal Development Sarah Y. Tong * Hong Kong Insttute of Economcs and Busness Strateges The Unversty of Hong Kong Aprl 2003

More information

Mortgage Default and Prepayment Risks among Moderate and Low Income Households. Roberto G. Quercia. University of North Carolina at Chapel Hill

Mortgage Default and Prepayment Risks among Moderate and Low Income Households. Roberto G. Quercia. University of North Carolina at Chapel Hill Mortgage Default and Prepayment Rsks among Moderate and Low Income Households Roberto G. Querca Unversty of North Carolna at Chapel Hll querca@emal.unc.edu Anthony Pennngton-Cross Marquette Unversty anthony.pennngton-cross@marquette.edu

More information

An Alternative Way to Measure Private Equity Performance

An Alternative Way to Measure Private Equity Performance An Alternatve Way to Measure Prvate Equty Performance Peter Todd Parlux Investment Technology LLC Summary Internal Rate of Return (IRR) s probably the most common way to measure the performance of prvate

More information

Inequality and The Accounting Period. Quentin Wodon and Shlomo Yitzhaki. World Bank and Hebrew University. September 2001.

Inequality and The Accounting Period. Quentin Wodon and Shlomo Yitzhaki. World Bank and Hebrew University. September 2001. Inequalty and The Accountng Perod Quentn Wodon and Shlomo Ytzha World Ban and Hebrew Unversty September Abstract Income nequalty typcally declnes wth the length of tme taen nto account for measurement.

More information

Stress test for measuring insurance risks in non-life insurance

Stress test for measuring insurance risks in non-life insurance PROMEMORIA Datum June 01 Fnansnspektonen Författare Bengt von Bahr, Younes Elonq and Erk Elvers Stress test for measurng nsurance rsks n non-lfe nsurance Summary Ths memo descrbes stress testng of nsurance

More information

On the correct model specification for estimating the structure of a currency basket

On the correct model specification for estimating the structure of a currency basket On the correct model specfcaton for estmatng the structure of a currency basket Jyh-Dean Hwang Department of Internatonal Busness Natonal Tawan Unversty 85 Roosevelt Road Sect. 4, Tape 106, Tawan jdhwang@ntu.edu.tw

More information

Financial Instability and Life Insurance Demand + Mahito Okura *

Financial Instability and Life Insurance Demand + Mahito Okura * Fnancal Instablty and Lfe Insurance Demand + Mahto Okura * Norhro Kasuga ** Abstract Ths paper estmates prvate lfe nsurance and Kampo demand functons usng household-level data provded by the Postal Servces

More information

Chapter 4 Financial Markets

Chapter 4 Financial Markets Chapter 4 Fnancal Markets ECON2123 (Sprng 2012) 14 & 15.3.2012 (Tutoral 5) The demand for money Assumptons: There are only two assets n the fnancal market: money and bonds Prce s fxed and s gven, that

More information

Descriptive Statistics (60 points)

Descriptive Statistics (60 points) Economcs 30330: Statstcs for Economcs Problem Set 2 Unversty of otre Dame Instructor: Julo Garín Sprng 2012 Descrptve Statstcs (60 ponts) 1. Followng a recent government shutdown, Mnnesota Governor Mark

More information

b) The mean of the fitted (predicted) values of Y is equal to the mean of the Y values: c) The residuals of the regression line sum up to zero: = ei

b) The mean of the fitted (predicted) values of Y is equal to the mean of the Y values: c) The residuals of the regression line sum up to zero: = ei Mathematcal Propertes of the Least Squares Regresson The least squares regresson lne obeys certan mathematcal propertes whch are useful to know n practce. The followng propertes can be establshed algebracally:

More information

! # %& ( ) +,../ 0 1 2 3 4 0 4 # 5##&.6 7% 8 # 0 4 2 #...

! # %& ( ) +,../ 0 1 2 3 4 0 4 # 5##&.6 7% 8 # 0 4 2 #... ! # %& ( ) +,../ 0 1 2 3 4 0 4 # 5##&.6 7% 8 # 0 4 2 #... 9 Sheffeld Economc Research Paper Seres SERP Number: 2011010 ISSN 1749-8368 Sarah Brown, Aurora Ortz-Núñez and Karl Taylor Educatonal loans and

More information

The Eastern Caribbean Currency Union: Would a Fiscal Insurance Mechanism Mitigate National Income Shocks?

The Eastern Caribbean Currency Union: Would a Fiscal Insurance Mechanism Mitigate National Income Shocks? WP/12/17 The Eastern Carbbean Currency Unon: Would a Fscal Insurance Mechansm Mtgate Natonal Income Shocks? Antono Lemus and Paul Cashn 2012 Internatonal Monetary Fund WP/12/17 IMF Workng Paper Mddle East

More information

World currency options market efficiency

World currency options market efficiency Arful Hoque (Australa) World optons market effcency Abstract The World Currency Optons (WCO) maket began tradng n July 2007 on the Phladelpha Stock Exchange (PHLX) wth the new features. These optons are

More information

Short-run and Long-run structural international tourism demand modeling based on Dynamic AIDS model -An empirical research in Japan-

Short-run and Long-run structural international tourism demand modeling based on Dynamic AIDS model -An empirical research in Japan- hort-run and ong-run structural nternatonal toursm demand modelng based on Dynamc AID model -An emprcal research n Japan- Atsush KOIKE a, Dasuke YOHINO b a Graduate chool of Engneerng, Kobe Unversty, Kobe,

More information

The timing ability of hybrid funds of funds

The timing ability of hybrid funds of funds The tmng ablty of hybrd funds of funds Javer Rodríguez* Graduate School of Busness Admnstraton Unversty of Puerto Rco PO 23332 San Juan, PR 00931 Abstract Hybrd mutual funds are funds that nvest n a combnaton

More information

Marginal Benefit Incidence Analysis Using a Single Cross-section of Data. Mohamed Ihsan Ajwad and Quentin Wodon 1. World Bank.

Marginal Benefit Incidence Analysis Using a Single Cross-section of Data. Mohamed Ihsan Ajwad and Quentin Wodon 1. World Bank. Margnal Beneft Incdence Analyss Usng a Sngle Cross-secton of Data Mohamed Ihsan Ajwad and uentn Wodon World Bank August 200 Abstract In a recent paper, Lanjouw and Ravallon proposed an attractve and smple

More information

Questions that we may have about the variables

Questions that we may have about the variables Antono Olmos, 01 Multple Regresson Problem: we want to determne the effect of Desre for control, Famly support, Number of frends, and Score on the BDI test on Perceved Support of Latno women. Dependent

More information

Scale Dependence of Overconfidence in Stock Market Volatility Forecasts

Scale Dependence of Overconfidence in Stock Market Volatility Forecasts Scale Dependence of Overconfdence n Stoc Maret Volatlty Forecasts Marus Glaser, Thomas Langer, Jens Reynders, Martn Weber* June 7, 007 Abstract In ths study, we analyze whether volatlty forecasts (judgmental

More information

Multivariate EWMA Control Chart

Multivariate EWMA Control Chart Multvarate EWMA Control Chart Summary The Multvarate EWMA Control Chart procedure creates control charts for two or more numerc varables. Examnng the varables n a multvarate sense s extremely mportant

More information

Kiel Institute for World Economics Duesternbrooker Weg 120 24105 Kiel (Germany) Kiel Working Paper No. 1120

Kiel Institute for World Economics Duesternbrooker Weg 120 24105 Kiel (Germany) Kiel Working Paper No. 1120 Kel Insttute for World Economcs Duesternbrooker Weg 45 Kel (Germany) Kel Workng Paper No. Path Dependences n enture Captal Markets by Andrea Schertler July The responsblty for the contents of the workng

More information

Sulaiman Mouselli Damascus University, Damascus, Syria. and. Khaled Hussainey* Stirling University, Stirling, UK

Sulaiman Mouselli Damascus University, Damascus, Syria. and. Khaled Hussainey* Stirling University, Stirling, UK CORPORATE GOVERNANCE, ANALYST FOLLOWING AND FIRM VALUE Sulaman Mousell Damascus Unversty, Damascus, Syra and Khaled Hussaney* Strlng Unversty, Strlng, UK Ths paper s accepted for publcaton at: Corporate

More information

The Current Employment Statistics (CES) survey,

The Current Employment Statistics (CES) survey, Busness Brths and Deaths Impact of busness brths and deaths n the payroll survey The CES probablty-based sample redesgn accounts for most busness brth employment through the mputaton of busness deaths,

More information

Management Quality and Equity Issue Characteristics: A Comparison of SEOs and IPOs

Management Quality and Equity Issue Characteristics: A Comparison of SEOs and IPOs Management Qualty and Equty Issue Characterstcs: A Comparson of SEOs and IPOs Thomas J. Chemmanur * Imants Paegls ** and Karen Smonyan *** Current verson: November 2009 (Accepted, Fnancal Management, February

More information

Exhaustive Regression. An Exploration of Regression-Based Data Mining Techniques Using Super Computation

Exhaustive Regression. An Exploration of Regression-Based Data Mining Techniques Using Super Computation Exhaustve Regresson An Exploraton of Regresson-Based Data Mnng Technques Usng Super Computaton Antony Daves, Ph.D. Assocate Professor of Economcs Duquesne Unversty Pttsburgh, PA 58 Research Fellow The

More information

Analysis of Subscription Demand for Pay-TV

Analysis of Subscription Demand for Pay-TV Analyss of Subscrpton Demand for Pay-TV Manabu Shshkura * Norhro Kasuga ** Ako Tor *** Abstract In ths paper, we wll conduct an analyss from an emprcal perspectve concernng broadcastng demand behavor and

More information

1. Measuring association using correlation and regression

1. Measuring association using correlation and regression How to measure assocaton I: Correlaton. 1. Measurng assocaton usng correlaton and regresson We often would lke to know how one varable, such as a mother's weght, s related to another varable, such as a

More information

Methodology and Principles of Analysis

Methodology and Principles of Analysis Methodology and Prncples of Analyss What s the IMD World Compettveness book? The IMD World Compettveness book (WCY) s the world s most thorough and comprehensve annual report on the compettveness of natons,

More information

WORKING PAPER. C.D. Howe Institute. The Effects of Tax Rate Changes on Tax Bases and the Marginal Cost of Public Funds for Provincial Governments

WORKING PAPER. C.D. Howe Institute. The Effects of Tax Rate Changes on Tax Bases and the Marginal Cost of Public Funds for Provincial Governments MARCH 211 C.D. Howe Insttute WORKING PAPER FISCAL AND TAX COMPETITIVENESS The Effects of Tax Rate Changes on Tax Bases and the Margnal Cost of Publc Funds for Provncal Governments Bev Dahlby Ergete Ferede

More information

PROFIT RATIO AND MARKET STRUCTURE

PROFIT RATIO AND MARKET STRUCTURE POFIT ATIO AND MAKET STUCTUE By Yong Yun Introducton: Industral economsts followng from Mason and Ban have run nnumerable tests of the relaton between varous market structural varables and varous dmensons

More information

The Journal of Applied Business Research January/February 2010 Volume 26, Number 1

The Journal of Applied Business Research January/February 2010 Volume 26, Number 1 Product Dversfcaton In Compettve R&D-Intensve Frms: An Emprcal Study Of The Computer Software Industry C. Catherne Chang, Elon Unversty, USA ABSTRACT Ths paper studes the effect of dversfcaton nto dfferent

More information

APPLICATION OF PROBE DATA COLLECTED VIA INFRARED BEACONS TO TRAFFIC MANEGEMENT

APPLICATION OF PROBE DATA COLLECTED VIA INFRARED BEACONS TO TRAFFIC MANEGEMENT APPLICATION OF PROBE DATA COLLECTED VIA INFRARED BEACONS TO TRAFFIC MANEGEMENT Toshhko Oda (1), Kochro Iwaoka (2) (1), (2) Infrastructure Systems Busness Unt, Panasonc System Networks Co., Ltd. Saedo-cho

More information

Is There A Tradeoff between Employer-Provided Health Insurance and Wages?

Is There A Tradeoff between Employer-Provided Health Insurance and Wages? Is There A Tradeoff between Employer-Provded Health Insurance and Wages? Lye Zhu, Southern Methodst Unversty October 2005 Abstract Though most of the lterature n health nsurance and the labor market assumes

More information

HOUSEHOLDS DEBT BURDEN: AN ANALYSIS BASED ON MICROECONOMIC DATA*

HOUSEHOLDS DEBT BURDEN: AN ANALYSIS BASED ON MICROECONOMIC DATA* HOUSEHOLDS DEBT BURDEN: AN ANALYSIS BASED ON MICROECONOMIC DATA* Luísa Farnha** 1. INTRODUCTION The rapd growth n Portuguese households ndebtedness n the past few years ncreased the concerns that debt

More information

Returns to Experience in Mozambique: A Nonparametric Regression Approach

Returns to Experience in Mozambique: A Nonparametric Regression Approach Returns to Experence n Mozambque: A Nonparametrc Regresson Approach Joel Muzma Conference Paper nº 27 Conferênca Inaugural do IESE Desafos para a nvestgação socal e económca em Moçambque 19 de Setembro

More information

Bank Credit Conditions and their Influence on Productivity Growth: Company-level Evidence

Bank Credit Conditions and their Influence on Productivity Growth: Company-level Evidence Bank Credt Condtons and ther Influence on Productvty Growth: Company-level Evdence Rebecca Rley*, Chara Rosazza Bondbene* and Garry Young** *Natonal Insttute of Economc and Socal Research & Centre For

More information

The Development of Web Log Mining Based on Improve-K-Means Clustering Analysis

The Development of Web Log Mining Based on Improve-K-Means Clustering Analysis The Development of Web Log Mnng Based on Improve-K-Means Clusterng Analyss TngZhong Wang * College of Informaton Technology, Luoyang Normal Unversty, Luoyang, 471022, Chna wangtngzhong2@sna.cn Abstract.

More information

An Empirical Analysis of the Effects of Agricultural FDI on the International Competitiveness of Agricultural Products in China

An Empirical Analysis of the Effects of Agricultural FDI on the International Competitiveness of Agricultural Products in China Modern Economy, 2014, 5, 1046-1052 Publshed Onlne October 2014 n ScRes. http://www.scrp.org/journal/me http://dx.do.org/10.4236/me.2014.511096 An Emprcal Analyss of the Effects of Agrcultural FDI on the

More information

Calculation of Sampling Weights

Calculation of Sampling Weights Perre Foy Statstcs Canada 4 Calculaton of Samplng Weghts 4.1 OVERVIEW The basc sample desgn used n TIMSS Populatons 1 and 2 was a two-stage stratfed cluster desgn. 1 The frst stage conssted of a sample

More information

Is the home bias in equities and bonds declining in Europe?

Is the home bias in equities and bonds declining in Europe? Drk Schoenmaker (Netherlands), Thjs Bosch (Netherlands) Is the home bas n equtes and bonds declnng n Europe? Abstract Fnance theory suggests that nvestors should hold an nternatonally dversfed portfolo.

More information

CHAPTER 5 RELATIONSHIPS BETWEEN QUANTITATIVE VARIABLES

CHAPTER 5 RELATIONSHIPS BETWEEN QUANTITATIVE VARIABLES CHAPTER 5 RELATIONSHIPS BETWEEN QUANTITATIVE VARIABLES In ths chapter, we wll learn how to descrbe the relatonshp between two quanttatve varables. Remember (from Chapter 2) that the terms quanttatve varable

More information

Cambodian Child s Wage Rate, Human Capital and Hours Worked Trade-off: Simple Theoretical and Empirical Evidence for Policy Implications

Cambodian Child s Wage Rate, Human Capital and Hours Worked Trade-off: Simple Theoretical and Empirical Evidence for Policy Implications GSIS Workng Paper Seres ambodan hld s Wage Rate, Human aptal and Hours Worked Trade-off: Smple Theoretcal and Emprcal Evdence for Polcy Implcatons Han PHOUMIN Sech FUKUI No. 6 August 2006 Graduate School

More information

The Investor Recognition Hypothesis:

The Investor Recognition Hypothesis: The Investor Recognton Hypothess: the New Zealand Penny Stocks Danel JP Cha, Department of Accountng and Fnance, onash Unversty, Clayton 3168, elbourne, Australa, and Danel FS Cho, Department of Fnance,

More information

Foreign Direct Investment in a World of Multiple Taxes

Foreign Direct Investment in a World of Multiple Taxes Foregn Drect Investment n a World of Multple Taxes by Mhr A. Desa Harvard Unversty and NBER James R. Hnes Jr. Unversty of Mchgan and NBER July 2001 We thank Yumng Zou for excellent research assstance,

More information

Data Mining from the Information Systems: Performance Indicators at Masaryk University in Brno

Data Mining from the Information Systems: Performance Indicators at Masaryk University in Brno Data Mnng from the Informaton Systems: Performance Indcators at Masaryk Unversty n Brno Mkuláš Bek EUA Workshop Strasbourg, 1-2 December 2006 1 Locaton of Brno Brno EUA Workshop Strasbourg, 1-2 December

More information

The Use of Analytics for Claim Fraud Detection Roosevelt C. Mosley, Jr., FCAS, MAAA Nick Kucera Pinnacle Actuarial Resources Inc.

The Use of Analytics for Claim Fraud Detection Roosevelt C. Mosley, Jr., FCAS, MAAA Nick Kucera Pinnacle Actuarial Resources Inc. Paper 1837-2014 The Use of Analytcs for Clam Fraud Detecton Roosevelt C. Mosley, Jr., FCAS, MAAA Nck Kucera Pnnacle Actuaral Resources Inc., Bloomngton, IL ABSTRACT As t has been wdely reported n the nsurance

More information

On Geographic Inequality in Japanese Regional Health Insurance

On Geographic Inequality in Japanese Regional Health Insurance On Geographc Inequalty n Japanese Regonal Health Insurance Narmasa KUMAGAI Faculty of Economcs Knk Unversty 10 February 2010 Abstract In Japan, economc stagnaton due to the lack of aggregate demand has

More information

Problem Set 3. a) We are asked how people will react, if the interest rate i on bonds is negative.

Problem Set 3. a) We are asked how people will react, if the interest rate i on bonds is negative. Queston roblem Set 3 a) We are asked how people wll react, f the nterest rate on bonds s negatve. When

More information

7. Instruments of Trade Policy

7. Instruments of Trade Policy GL458, Internatonal Trade & Globalzaton / K. Chrst 7. Instruments of Trade olcy Learnng Objectves 7. Instruments of Trade olcy Become famlar wth the varous nstruments of trade polcy tarff and non-tarff

More information

9.1 The Cumulative Sum Control Chart

9.1 The Cumulative Sum Control Chart Learnng Objectves 9.1 The Cumulatve Sum Control Chart 9.1.1 Basc Prncples: Cusum Control Chart for Montorng the Process Mean If s the target for the process mean, then the cumulatve sum control chart s

More information

THE RELATIONSHIP BETWEEN FINANCING POLICY AND FINANCIAL PERFORMANCE IN THE BRAZILIAN TEXTILE INDUSTRY

THE RELATIONSHIP BETWEEN FINANCING POLICY AND FINANCIAL PERFORMANCE IN THE BRAZILIAN TEXTILE INDUSTRY THE RELATIONSHIP BETWEEN FINANCING POLICY AND FINANCIAL PERFORMANCE IN THE BRAZILIAN TEXTILE INDUSTRY Davd Ferrera Lopes Santos UNESP Unv. Estadual Paulsta Rod. Paulo Donato Castellane, s/n Jabotcabal-SP

More information

Heterogeneous Paths Through College: Detailed Patterns and Relationships with Graduation and Earnings

Heterogeneous Paths Through College: Detailed Patterns and Relationships with Graduation and Earnings Heterogeneous Paths Through College: Detaled Patterns and Relatonshps wth Graduaton and Earnngs Rodney J. Andrews The Unversty of Texas at Dallas and the Texas Schools Project Jng L The Unversty of Tulsa

More information

Introduction to Regression

Introduction to Regression Introducton to Regresson Regresson a means of predctng a dependent varable based one or more ndependent varables. -Ths s done by fttng a lne or surface to the data ponts that mnmzes the total error. -

More information

The impact of bank capital requirements on bank risk: an econometric puzzle and a proposed solution

The impact of bank capital requirements on bank risk: an econometric puzzle and a proposed solution Banks and Bank Systems, Volume 4, Issue 1, 009 Robert L. Porter (USA) The mpact of bank captal requrements on bank rsk: an econometrc puzzle and a proposed soluton Abstract The relatonshp between bank

More information

The Relationship between Exchange Rates and Stock Prices: Studied in a Multivariate Model Desislava Dimitrova, The College of Wooster

The Relationship between Exchange Rates and Stock Prices: Studied in a Multivariate Model Desislava Dimitrova, The College of Wooster Issues n Poltcal Economy, Vol. 4, August 005 The Relatonshp between Exchange Rates and Stock Prces: Studed n a Multvarate Model Desslava Dmtrova, The College of Wooster In the perod November 00 to February

More information

WORKING PAPERS. The Impact of Technological Change and Lifestyles on the Energy Demand of Households

WORKING PAPERS. The Impact of Technological Change and Lifestyles on the Energy Demand of Households ÖSTERREICHISCHES INSTITUT FÜR WIRTSCHAFTSFORSCHUNG WORKING PAPERS The Impact of Technologcal Change and Lfestyles on the Energy Demand of Households A Combnaton of Aggregate and Indvdual Household Analyss

More information

Investigating the Interaction Effect of Democracy and Economic Freedom on Corruption: A Cross- Country Quantile Regression Analysis

Investigating the Interaction Effect of Democracy and Economic Freedom on Corruption: A Cross- Country Quantile Regression Analysis Edth Cowan Unversty Research Onlne ECU Publcatons 2012 2012 Investgatng the Interacton Effect of Democracy and Economc Freedom on Corrupton: A Cross- Country Quantle Regresson Analyss Shraban Saha Edth

More information

Forecasting and Stress Testing Credit Card Default using Dynamic Models

Forecasting and Stress Testing Credit Card Default using Dynamic Models Forecastng and Stress Testng Credt Card Default usng Dynamc Models Tony Bellott and Jonathan Crook Credt Research Centre Unversty of Ednburgh Busness School Verson 4.5 Abstract Typcally models of credt

More information

7.5. Present Value of an Annuity. Investigate

7.5. Present Value of an Annuity. Investigate 7.5 Present Value of an Annuty Owen and Anna are approachng retrement and are puttng ther fnances n order. They have worked hard and nvested ther earnngs so that they now have a large amount of money on

More information

The Application of Fractional Brownian Motion in Option Pricing

The Application of Fractional Brownian Motion in Option Pricing Vol. 0, No. (05), pp. 73-8 http://dx.do.org/0.457/jmue.05.0..6 The Applcaton of Fractonal Brownan Moton n Opton Prcng Qng-xn Zhou School of Basc Scence,arbn Unversty of Commerce,arbn zhouqngxn98@6.com

More information

CHAPTER 14 MORE ABOUT REGRESSION

CHAPTER 14 MORE ABOUT REGRESSION CHAPTER 14 MORE ABOUT REGRESSION We learned n Chapter 5 that often a straght lne descrbes the pattern of a relatonshp between two quanttatve varables. For nstance, n Example 5.1 we explored the relatonshp

More information

The Effects of Tax Rate Changes on Tax Bases and the Marginal Cost of Public Funds for Canadian Provincial Governments

The Effects of Tax Rate Changes on Tax Bases and the Marginal Cost of Public Funds for Canadian Provincial Governments The Effects of Tax Rate Changes on Tax Bases and the Margnal Cost of Publc Funds for Canadan Provncal Governments Bev Dahlby a and Ergete Ferede b a Department of Economcs, Unversty of Alberta, Edmonton,

More information

The Analysis of Outliers in Statistical Data

The Analysis of Outliers in Statistical Data THALES Project No. xxxx The Analyss of Outlers n Statstcal Data Research Team Chrysses Caron, Assocate Professor (P.I.) Vaslk Karot, Doctoral canddate Polychrons Economou, Chrstna Perrakou, Postgraduate

More information

School of Economics and Management

School of Economics and Management School of Economcs and Management TECHNICAL UNIVERSITY OF LISBON Department of Economcs Carlos Pestana Barros & Ncolas Peypoch Nuno Letão, Horáco Faustno and Yush Yoshda A Comparatve Analyss of Productvty

More information

THE EFFECT OF THE INCREMENTAL R&D TAX CREDIT ON THE PRIVATE FUNDING OF R&D: AN ECONOMETRIC EVALUATION ON FRENCH FIRM LEVEL DATA

THE EFFECT OF THE INCREMENTAL R&D TAX CREDIT ON THE PRIVATE FUNDING OF R&D: AN ECONOMETRIC EVALUATION ON FRENCH FIRM LEVEL DATA THE EFFECT OF THE INCREMENTAL R&D TAX CREDIT ON THE PRIVATE FUNDING OF R&D: AN ECONOMETRIC EVALUATION ON FRENCH FIRM LEVEL DATA Emmanuel Duguet To cte ths verson: Emmanuel Duguet. THE EFFECT OF THE INCREMENTAL

More information

PSYCHOLOGICAL RESEARCH (PYC 304-C) Lecture 12

PSYCHOLOGICAL RESEARCH (PYC 304-C) Lecture 12 14 The Ch-squared dstrbuton PSYCHOLOGICAL RESEARCH (PYC 304-C) Lecture 1 If a normal varable X, havng mean µ and varance σ, s standardsed, the new varable Z has a mean 0 and varance 1. When ths standardsed

More information

Section 5.3 Annuities, Future Value, and Sinking Funds

Section 5.3 Annuities, Future Value, and Sinking Funds Secton 5.3 Annutes, Future Value, and Snkng Funds Ordnary Annutes A sequence of equal payments made at equal perods of tme s called an annuty. The tme between payments s the payment perod, and the tme

More information

benefit is 2, paid if the policyholder dies within the year, and probability of death within the year is ).

benefit is 2, paid if the policyholder dies within the year, and probability of death within the year is ). REVIEW OF RISK MANAGEMENT CONCEPTS LOSS DISTRIBUTIONS AND INSURANCE Loss and nsurance: When someone s subject to the rsk of ncurrng a fnancal loss, the loss s generally modeled usng a random varable or

More information

The Choice of Direct Dealing or Electronic Brokerage in Foreign Exchange Trading

The Choice of Direct Dealing or Electronic Brokerage in Foreign Exchange Trading The Choce of Drect Dealng or Electronc Brokerage n Foregn Exchange Tradng Mchael Melvn & Ln Wen Arzona State Unversty Introducton Electronc Brokerage n Foregn Exchange Start from a base of zero n 1992

More information

NPAR TESTS. One-Sample Chi-Square Test. Cell Specification. Observed Frequencies 1O i 6. Expected Frequencies 1EXP i 6

NPAR TESTS. One-Sample Chi-Square Test. Cell Specification. Observed Frequencies 1O i 6. Expected Frequencies 1EXP i 6 PAR TESTS If a WEIGHT varable s specfed, t s used to replcate a case as many tmes as ndcated by the weght value rounded to the nearest nteger. If the workspace requrements are exceeded and samplng has

More information

Marginal Returns to Education For Teachers

Marginal Returns to Education For Teachers The Onlne Journal of New Horzons n Educaton Volume 4, Issue 3 MargnalReturnstoEducatonForTeachers RamleeIsmal,MarnahAwang ABSTRACT FacultyofManagementand Economcs UnverstPenddkanSultan Idrs ramlee@fpe.ups.edu.my

More information

An Empirical Study of Search Engine Advertising Effectiveness

An Empirical Study of Search Engine Advertising Effectiveness An Emprcal Study of Search Engne Advertsng Effectveness Sanjog Msra, Smon School of Busness Unversty of Rochester Edeal Pnker, Smon School of Busness Unversty of Rochester Alan Rmm-Kaufman, Rmm-Kaufman

More information

Day-of-the-Week Trading Patterns of Individual and Institutional Investors

Day-of-the-Week Trading Patterns of Individual and Institutional Investors Day-of-the-Week Tradng Patterns of Indvdual and Instutonal Investors Joel N. Morse, Hoang Nguyen, and Hao M. Quach Ths study examnes the day-of-the-week tradng patterns of ndvdual and nstutonal nvestors.

More information

Section 5.4 Annuities, Present Value, and Amortization

Section 5.4 Annuities, Present Value, and Amortization Secton 5.4 Annutes, Present Value, and Amortzaton Present Value In Secton 5.2, we saw that the present value of A dollars at nterest rate per perod for n perods s the amount that must be deposted today

More information

The Probit Model. Alexander Spermann. SoSe 2009

The Probit Model. Alexander Spermann. SoSe 2009 The Probt Model Aleander Spermann Unversty of Freburg SoSe 009 Course outlne. Notaton and statstcal foundatons. Introducton to the Probt model 3. Applcaton 4. Coeffcents and margnal effects 5. Goodness-of-ft

More information

International Commodity Prices and the Australian Stock Market

International Commodity Prices and the Australian Stock Market Internatonal Commodty Prces and the Australan Stock Market Chrs Heaton, George Mlunovch and Anthony Passé-de Slva Abstract We propose a method for estmatng the earlest tme durng the tradng day when overnght

More information

Economic Geography and International Inequality: Reappraisal (Part II) (Note: Preliminary. Currently, sections of this paper overlap with Part I)

Economic Geography and International Inequality: Reappraisal (Part II) (Note: Preliminary. Currently, sections of this paper overlap with Part I) Economc Geography and Internatonal Inequalty: eapprasal (Part II) (Note: Prelmnary. Currently, sectons of ths paper overlap wth Part I) Testng the Market Access Matters Hypothess n Hstorcal Perspectve

More information

energies ISSN 1996-1073 www.mdpi.com/journal/energies

energies ISSN 1996-1073 www.mdpi.com/journal/energies Energes 2013, 6, 3444-3465; do:10.3390/en6073444 Artcle OPEN ACCESS energes ISSN 1996-1073 www.mdp.com/journal/energes Comparson and Analyss of Macro Energy Scenaros n Chna and a Decomposton-Based Approach

More information

Describing Communities. Species Diversity Concepts. Species Richness. Species Richness. Species-Area Curve. Species-Area Curve

Describing Communities. Species Diversity Concepts. Species Richness. Species Richness. Species-Area Curve. Species-Area Curve peces versty Concepts peces Rchness peces-area Curves versty Indces - mpson's Index - hannon-wener Index - rlloun Index peces Abundance Models escrbng Communtes There are two mportant descrptors of a communty:

More information