Asymmetric Adjustment Costs in Non-linear labour Demand Models for the Netherlands and U.K. Manufacturing Sectors

1993 ◽  
Vol 60 (2) ◽  
pp. 397 ◽  
Author(s):  
Gerard A. Pfann ◽  
Franz C. Palm
1995 ◽  
Vol 2 (1) ◽  
pp. 105 ◽  
Author(s):  
S. Bentolila ◽  
G. Saint-Paul

Author(s):  
Johannes A. de Waal ◽  
Mathijs W. Schouten

Abstract. At the start of gas production its effects on land subsidence are not certain. There are uncertainties in mechanisms, models and parameters. Examples are non-linear deformation of reservoir rock, fault transmissibility, behaviour of overlaying salt and aquifer activity. Looking back at historical cases in the Netherlands, a factor two or three difference between initial prediction and final outcome is quite common. As the Dutch regulator, SSM is tasked with assuring proper management by operators of the risks associated with land subsidence from natural gas production in The Netherlands. Large initial uncertainties can only be tolerated if operators can demonstrate that timely actions can still be taken when predefined subsidence limits are at risk of being exceeded now or in the future. The applied regulatory approach is illustrated by the case history of gas production induced subsidence in the Dutch Wadden Sea area. This environmentally highly sensitive UNESCO World Heritage Site is a natural gas province. Extensive legal, technical and organisational frameworks are in place to prevent damage to its natural values. Initial uncertainties in the predicted subsidence (rate) were later exacerbated by the detection of strong non-linear effects in the observed subsidence behaviour, leading to new concerns. It was realised that – depending on the underlying physical cause(s) – there will be a different impact on future subsidence. To assure proper management of the additional uncertainty by the operator, several improvements in the regulatory approach have been implemented. Possible underlying mechanisms had to be studied in depth and improved data analysis techniques were requested to narrow down uncertainties as time progresses. The approach involves intensified field monitoring, scenario's covering the full range of uncertainties and a particle filter approach to handle uncertainties in predictions and measurements. Spatial-temporal double differences, production data and the full covariance matrix are used to confront scenario predictions against measurements and to assess their relative probability. The regulator is actively involved in assuring this integrated control loop of predictions, monitoring, updating, mitigation measures and the closing of knowledge gaps. The regulator involvement is supported in the Mining law and by appropriate conditions in the production plan assent. With the approach it can be confidently assured that subsidence (rate) will remain within the allowed range.


2018 ◽  
Vol 56 (2) ◽  
pp. 441-457 ◽  
Author(s):  
Ajaya Kumar Panda ◽  
Swagatika Nanda

Purpose The purpose of this paper is to provide empirical evidence about the relationship between working capital financing (WCF) and firm profitability in six key manufacturing sectors of Indian Economy. It also aims to capture the change in the financing of working capital requirement over different scenarios of price-cost margin and financial flexibility. Design/methodology/approach The study is undertaken on a sample of 1,211 firms from 6 key manufacturing sectors of Indian economy from 2000 to 2016. The non-linear relationship between WCF and profitability is studied using two-step generalized model of moments (GMM) estimator. Findings The study finds a convex relationship between WCF and profitability among firms in chemical, construction, and consumer goods sectors. Firms in these sectors can finance larger portion of their working capital requirements through short-term debt without negatively impacting profitability. However, a concave pattern of relationship for firms in machinery, metal, and textile industries implies increasing debt financing of working capital requirement would increase profitability for the firms who have financed lower portion of their working capital by short-term bank borrowing. But when a higher proportion of working capital requirements are already financed by short-term debt, a further increase in debt financing may impact profitability negatively. Moreover, the study finds that firms with high financial flexibility and high price-cost margin (except textile) can increase profitability by financing larger portion of working capital requirement through short-term debts and the continuation with risky WCF could increase profitability. Originality/value The study contributes to the literature on working capital in a number of ways. First, no previous study has been undertaken to explore the non-linear relationship between WCF and corporate profitability over a large sample of firms from six key manufacturing sectors of Indian economy. Second, the study uses a quadratic function to explore the non-linear relationship between WCF and profitability. Third, the study explores the relationship between WCF and profitability with respect to the price-cost margin and financial flexibility of firms under different manufacturing sectors of Indian economy. Finally, the study uses advanced two-step GMM, the panel data techniques to handle unobservable heterogeneity and issues of endogeneity within the data sample.


1999 ◽  
Vol 3 (4) ◽  
pp. 506-533 ◽  
Author(s):  
Sumru Altuğ ◽  
Richard A. Ashley ◽  
Douglas M. Patterson

The behavior of postwar real U.S. GNP, the inputs to an aggregate production function, and several formulations of the associated Solow residuals for the presence of nonlinearities in their generating mechanisms are examined. Three different statistical tests for nonlinearity are implemented: the McLeod-Li test, the BDS test, and the Hinich bicovariance test. We find substantial evidence for nonlinearity in the generating mechanism of real GNP growth but no evidence for nonlinearity in the Solow residuals. We further find that the generating mechanism of the labor input series is nonlinear, whereas that of the capital services input appears to be linear. We therefore conclude that the observed nonlinearity in real output arises from nonlinearities in the labor markets, not from nonlinearities in the technical shocks driving the system. Finally, we investigate the source of the nonlinearities in the labor markets by examining simulated data from a model of the Dutch economy with asymmetric adjustment costs.


2021 ◽  
Vol 49 (2) ◽  
pp. 100-126
Author(s):  
Renée van der Nat ◽  
Piet Bakker ◽  
Eggo Müller

Abstract Snow Fall in the polder. Interactive multimedia productions in Dutch journalism Interactive multimedia productions are a recent journalistic format. The format has been studied in the Anglo-Saxon context as digital longform and interactive documentary. Research has consequently focused on English language productions. This article presents an overview of these types of productions created in the Netherlands and also proposes an analytical apparatus and conceptualization that does justice to the main properties of this new genre; multimediality and interactivity. The results show that this journalistic form is mainly produced by established national newsrooms. Furthermore, the potential of digital media is used sparsely. Despite the use of complex narrative structures like multi-linear and non-linear stories, familiar media forms are used. Interactive features are mostly utilized to provide additional information to users.


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