Returns to Scale for EU Regional Manufacturing

Recent theoretical advances have emphasised the importance of localised increasing returns to scale in understanding both the regional growth and agglomeration processes. However, considerable empirical controversy still exists over whether returns to scale are constant or increasing. Consequently, this study aims to provide some new estimates of the degree of returns to scale for EU regional manufacturing. It does so within the framework of the Verdoorn law. Unlike previous studies, issues of specification of fundamental importance to recent theoretical developments are brought to attention. Overall, the paper concludes that localised increasing returns in EU regional manufacturing are substantial.increasing returns, Verdoorn law, manufacturing, productivity growth, spatial econometrics

Modeling technological progress and investment in China: Some caveats

Since the early 1990s, the number of papers estimating econometric models and using other quantitative techniques to try to understand different aspects of the Chinese economy has mushroomed. A common feature of some of these studies is the use of neoclassical theory as the underpinning for the empirical implementations. It is often assumed that factor markets are competitive, that firms are profit maximizers, and that these firms respond to the same incentives that firms in market economies do. Many researchers find that the Chinese economy can be well explained using the tools of neoclassical theory. In this paper, we (1) review two examples of estimation of the rate of technical progress, and (2) discuss one attempt at modeling investment. We identify their shortcomings and the problems with the alleged policy implications derived. We show that econometric estimation of neoclassical models may result in apparently sensible results for misinformed reasons. We conclude that modeling the Chinese economy requires a deeper understanding of its inner workings as both a transitional and a developing economy

Increasing returns to scale and regions: a multilevel model for Brazil

This is the final version of the article. It was first available from Associação Keynesiana Brasileira via http://www.akb.org.br/revista/index.php/BKR/article/view/36The paper proposes and tests an alternative way to incorporate a spatial dimension to the Verdoorn Law using multilevel models, tailored to deal with nested data. This methodology allows extending the Verdoorn equation, incorporating elements from Urban Economics to Post-Keynesian growth analysis. The estimations used firm-level data from the Brazilian manufacturing industry from 1996 to 2002. The results showed that, after controlling for firms’ characteristics, the spatial dimension is crucial to explain rates of labour productivity and output growth. Moreover, the estimations showed that substantial knowledge spillovers and urbanisation externalities are beneficial to firms’ growth, whereas localisation externalities tend to be harmful.Research for this paper was partially funded by Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq), Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES) and Fundação de Amparo à Pesquisa do Estado de Minas Gerais (Fapemig). The authors are grateful for technical support provided by Instituto de Pesquisa Econômica Aplicada (IPEA) and by Instituto Brasileiro de Geografia e Estatística (IBGE). The authors would also like to thank Pedro Vasconcelos Maia do Amaral for invaluable comments and suggestions

ON THE RENTAL PRICE OF CAPITAL AND THE PROFIT RATE: THE PERILS AND PITFALLS OF TOTAL FACTOR PRODUCTIVITY GROWTH

This paper considers the implications of the conceptual difference between the rental price of capital, embedded in the neoclassical cost identity (output equals the cost of labour plus the cost of capital), and used in growth accounting studies; and the profit rate, which can be derived from the national income and product accounts (NIPA). The neoclassical identity is a "virtual" identity in that it depends on a series of assumptions (constant returns to scale and perfectly competitive factor markets). The income side of the NIPA also provides an accounting identity for output as the sum of the wage bill plus the surplus. This identity, however, is a "real" one, in the sense that it does not depend on any assumptions and thus it holds always. It is shown that because the neoclassical cost identity and the income accounting identity according to the NIPA are formally equivalent expressions, estimations of aggregate production functions and growth accounting studies are tautologies. Likewise, the test of the hypothesis of competitive markets using Hall's (1988) framework gives rise to a null hypothesis that cannot be rejected statistically.

CORRECTING FOR BIASES WHEN ESTIMATING PRODUCTION FUNCTIONS: AN ILLUSION OF THE LAWS OF ALGEBRA?

this paper argues that the true cause of the endogeneity bias that allegedly appears when estimating production functions, and which the literature has tried to deal with since the 1940s, is s imply the result of omitted-variable bias due to an incorrect approximation to an accounting identity. As a result we question recent attempts to solve the problem by developing new estimators.

Stereospecific synthesis of the aglycone of pseudopterosin E

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Why are Some Countries Richer than Others? A Reassessment of Mankiw-Romer-Weil's Test of the Neoclassical Growth Model

"This paper provides evidence of a problem with the influential testing and assessment of Solow's (1956) growth model proposed by Mankiw et al. (1992) and a series of subsequent papers evaluating the latter. First, the assumption of a common rate of technical progress maintained by Mankiw et al. (1992) is relaxed. Solow's model is extended to include the different levels and rates of technical progress of each country. This increases the explanatory power of the cross-country variation in income per capita of the OECD countries to over 80 percent. The estimates of the parameters are statistically significant and take the expected values and signs. Second, and more important, it is shown that the estimates merely reflect a statistical artifact. This has serious implications for the possibility of actually testing Solow's growth model.

Current challenges in de novo plant genome sequencing and assembly

ABSTRACT: Genome sequencing is now affordable, but assembling plant genomes de novo remains challenging. We assess the state of the art of assembly and review the best practices for the community

Phenotypic and Genetic Consequences of Size Selection at the Larval Stage in the Pacific Oyster (Crassostrea gigas)

The life histories of oysters in the genus "Crassostrea", like those of most marine bivalves, are typified by high fecundity and low survival in nature. Rearing conditions in hatcheries however ensure optimized density, diet, and temperature. Hatcheries are becoming increasingly important for the production of juveniles in aquaculture, and their culture practices often include culling of slow growing larvae to reduce and synchronize the time taken to reach settlement. Because previous studies have found substantial genetic variation for early life developmental traits in "Crassostrea gigas", these culling practices are likely to cause highly different selective pressures in hatcheries from those in the natural environment. We studied the phenotypic and genetic impact of such culling practices in a factorial cross between 10 males and 3 females subjected to progressive culling of the smallest 50% of larvae, compared with a non-culled control. Measurements were made on larval growth, survival, time taken to attain pediveliger stage and settlement success. Culling had a larger effect on the variance of these larval traits than on their means. The larvae in culled cultures were approximately 10% larger than those in controls, whereas the coefficient of variation was reduced by 30 -40%. Culling also reduced the mean time to settlement by 12% and its variance by 55%. Using a multiplexed set of microsatellite markers to trace parentage, we also estimated the variance in reproductive success in a controlled experiment to quantify the consequences of intensive hatchery rearing practices. We also focused on changes in effective population size and genetic structure over time (and developmental stages). Our results show a loss of genetic diversity following removal of the smallest larvae by culling, as well as temporally varying genetic structure of the larval population. This supports the existence of genetic variability in early life developmental traits in C. gigas. Culling in hatcheries, like size-related selective pressures in the wild, are likely to have a significant genetic impact, through their effects on the timing of settlement

Non-Medical Use of Cognitive Enhancing Prescription Medications Among Occupational Therapy and Speech Language Pathology Health Care Students: A Pilot Study

Purpose: This research was designed to serve as a pilot study to generate baseline data on non-medical use of prescription drugs (NMUPD) for cognitive/academic enhancement purposes among students representing two healthcare professions, Occupational Therapy (OT) and Speech Language Pathology (SLP) and to assess students’ opinions regarding whether use of these medications constitutes academic “cheating.” Introduction: NMUPD, such as Adderall ® or Ritalin ®, to reduce fatigue, improve memory, and increase concentration to ultimately improve grades has increased among college students in recent years, with estimated use put as high as 35% on some campuses. These drugs appear to be readily available to those not prescribed them, with primary sources including family, friends, and classmates. Aside from health concerns stemming from ingesting non-prescribed medications is the ethical concern whether use of such cognitive enhancers is “cheating.” Methods: Following IRB approval, 150 OT and 150 SLP students, randomly selected from membership in their respective national associations, were mailed survey packets containing a cover letter, questionnaire, and return envelope. Results: A total of 51 completed surveys, including 25 OT and 26 SLP students, were returned and included in analyses. Of these, five (9.8%) reported using cognitive enhancing prescription medications. Four of these reported having a legal prescription, including one who admitted faking symptoms of ADHD to access the prescription. The fifth student had no prescription. Motives included recreational enjoyment, to improve attention/concentration, reduce hyperactivity/impulsivity, and to obtain higher grades. Four out of ten students indicated abuse of prescription medications was a problem at their institutions, with three out of ten believing it was easy to obtain such drugs. Students were visibly divided as to whether use of these medications was academic cheating. Conclusions: The percent of these healthcare profession students reporting to have used non-prescribed medications for academic enhancement purposes mirrors that of studies on the general college student population and reflects the division as to whether use constitutes cheating. As the survey is a self-report, the numbers using the prescription medications may be higher. Results indicate future research on NMUPD among healthcare students is warranted, along with a need to educate students on the risks of use of these medications for non-prescribed purposes