[The methods of Cochrane and Orcutt orr Hildreth and Lu to correct linear regressions for first-order autoregression in the disturbances, as usually implemented, underestimate the standard errors of the regression coefficients whenever a lagged dependent variable is included. A convenient transformation is derived from the information matrix to remove this bias. The asymptotic standard error of the estimated serial coefficient is a useful coproduct of the analysis.]
This paper attempts an international comparison of production structures, using the input-output framework. An earlier study in this field has shown that the production structures of advanced countries such as Italy, Japan, Norway, and the United States are similar, in spite of the wide differences in their levels of per capita income. This paper extends the analysis to a comparison of the production structure of India, a developing country with a very low per capita income, with those of the above developed countries. The result shows that in spite of the differences in the levels of development and per capita incomes, the similarity is preserved. THE PURPOSE of this study is to find out whether the structure of production of India is in any way comparable to those of Italy, Japan, Norway, and the United States. Looking at the present stage of India's development, low per capita income, and the overwhelming importance of the agricultural sector, the general impression would be that the production structure of India is unlikely to be in any way similar to the production structures of industrially developed countries. It might, therefore, be suggested that any attempt to compare the structure of production in India with that of a relatively more developed country like the United States or Italy would yield poor results. The results of a pioneering study by Chenery and Watanabe [1], however, indicated that there could be similarities in production and use of intermediate products among such countries as Italy (1950), Japan (1951), Norway (1950), and the United States (1947), though there were wide differences among these countries with respect to their resource endowments, per capita income, and the level of dependence on foreign trade. In a recent study [3] Simpson and Tsukui, while pointing out similarities in the structure of production of Japan and the United States, reported what appeared to them to be an important empirical regularity, the existence of a fundamental structure of production. The present study provides some further evidence that irrespective of differences in resource endowments and the level of economic development similarities in the production structures of different countries appear to exist. It would be of some interest to note here briefly the basic forces that tend to create similarities or dissimilarities in the national structure of production before
[A decomposition technique for linear programs is presented, in which the master program distributes the common resources and aims directly among the subprograms, rather than using price setting as is done in the Dantzig-Wolfe method. The technique is essentially a dual formulation of the Dantzig-Wolfe method. Consequently the optimum is reached in a finite number of steps. This is in contrast with the Kornai-Liptak method.]
Wallace and Hussain (1969) considered the use of an error components regression model in the analysis of time series of cross-sections and developed an estimator of the coefficient vector based on an estimated variance-covariance matrix of error terms. In this paper, we have shown that under the set of assumptions adopted by Wallace and Hussain there are an infinite number of estimators which have the same asymptotic variancecovariance matrix as the Wallace-Hussain estimator and also that it is not possible to choose an estimator on the basis of asymptotic efficiency. We have developed an alternative estimator of the variance-covariance matrix of error terms and have used this estimator in developing a feasible Aitken type estimator for the coefficient vector. We have derived some small sample properties of this estimator and have compared them with those of other estimators of the coefficient vector.
[This paper presents a new version of the factor-price equalization theorem. The numbers of outputs and of factor inputs are allowed to be unmatched. The domestic factor prices in a country facing the international commodity prices are uniquely determined in the neoclassical framework once the factor endowment is taken as given. This allows the factor-price equalization proposition to maintain the invariance of the derivatives of the social production possibility schedule with respect to input parameter perturbations, considering the possible repercussions in the outputs. A necessary and sufficient condition for this invariance is presented in terms of second derivatives of the social production possibility frontier with its economic interpretation. This condition is applied to the non-joint production case. The paper asserts that the equalization theorem holds true if the constant-returns to scale production functions are strictly concave except along rays and satisfy the full-rank condition on the input-coefficient matrix, and if the number of commodities is no less than that of factors. Several other varieties are also presented including the joint production case.]
This empirical study presents an analysis of mode choice for selected urban trips in the San Francisco Bay area. The economic model is a restricted consumer choice model, where the mutually exclusive collectively exhaustive choice is between auto driver and transit passenger. The main testable hypothesis is that, in the absence of knowledge about the value a traveler attaches to his time, if a choice exists and if a mode is cheaper than the alternative in terms of both time and money, it should be chosen. The hypothesis was subjected to empirical analysis and, within the limits of the data, appeared to be a good approximation to reality. The statistical model used to further investigate the data was discrimination-classification analysis. The discriminant function can be interpreted as an indifference hypersurface of the indirect or constrained utility function. The statistical theory underlying the three versions of the model used is presented along with a derivation of the elasticity of choice. The data were a subset of the Bay Area Transportation Study Commission origin and destination home interview data merged with interzonal travel times and costs of both modes. Trips were stratified by purpose. Elasticities were calculated and compared both within a purpose by different variables and between purposes for each variable. Some potential policy changes were treated in the context of the model and compared with results of other studies.