Post-Bretton Woods evidence on PPP under different exchange rate regimes

This article investigates the behaviour of exchange rates across different regimes for a post-Bretton Woods period. The exchange rate regime classification is based on the classification of Frankel et al. (2004) who condensed the 10 categories of exchange rate regimes reported by the International Monetary Fund (IMF) into three categories. Panel unitroot tests and panel cointegration are used to examine the Purchasing Power Parity (PPP) hypothesis. The latter test is used to check for both the weak and strong forms of PPP. The panel unit-root tests show no evidence of PPP and suggest there is no difference in the behaviour of exchange rates across different regimes. However, failure to detect PPP across any of the regimes could be due to structural breaks. This assumption is reinforced by the results of cointegration tests, which suggest that there exists at least a weak form of PPP for the different regimes. The evidence for strong PPP decreases as the exchange rate regime moves away from a flexible exchange rate regime.

Early marketing matters:a time-varying parameter approach to persistence modeling

Are persistent marketing effects most likely to appear right after the introduction of a product? The authors give an affirmative answer to this question by developing a model that explicitly reports how persistent and transient marketing effects evolve over time. The proposed model provides managers with a valuable tool to evaluate their allocation of marketing expenditures over time. An application of the model to many pharmaceutical products, estimated through (exact initial) Kalman filtering, indicates that both persistent and transient effects occur predominantly immediately after a brand's introduction. Subsequently, the size of the effects declines. The authors theoretically and empirically compare their methodology with methodology based on unit root testing and demonstrate that the need for unit root tests creates difficulties in applying conventional persistence modeling. The authors recommend that marketing models should either accommodate persistent effects that change over time or be applied to mature brands or limited time windows only.

Uncovering the root cause of ethnic difference in ability testing:differential test functioning, test familiarity and trait optimism as explanations of ethnic group differences

The present research represents a coherent approach to understanding the root causes of ethnic group differences in ability test performance. Two studies were conducted, each of which was designed to address a key knowledge gap in the ethnic bias literature. In Study 1, both the LR Method of Differential Item Functioning (DIF) detection and Mixture Latent Variable Modelling were used to investigate the degree to which Differential Test Functioning (DTF) could explain ethnic group test performance differences in a large, previously unpublished dataset. Though mean test score differences were observed between a number of ethnic groups, neither technique was able to identify ethnic DTF. This calls into question the practical application of DTF to understanding these group differences. Study 2 investigated whether a number of non-cognitive factors might explain ethnic group test performance differences on a variety of ability tests. Two factors – test familiarity and trait optimism – were able to explain a large proportion of ethnic group test score differences. Furthermore, test familiarity was found to mediate the relationship between socio-economic factors – particularly participant educational level and familial social status – and test performance, suggesting that test familiarity develops over time through the mechanism of exposure to ability testing in other contexts. These findings represent a substantial contribution to the field’s understanding of two key issues surrounding ethnic test performance differences. The author calls for a new line of research into these performance facilitating and debilitating factors, before recommendations are offered for practitioners to ensure fairer deployment of ability testing in high-stakes selection processes.

Biomass fast pyrolysis energy balance of a 1kg/h test rig

The present paper offers a methodological approach towards the estimation and definition of enthalpies constituting an energy balance around a fast pyrolysis experiment conducted in a laboratory scale fluid bed with a capacity of 1 kg/ h. Pure N2 was used as fluidization medium at atmospheric pressure and the operating temperature (∼500°C) was adjusted with electrical resistors. The biomass feedstock type that was used was beech wood. An effort was made to achieve a satisfying 92.5% retrieval of products (dry basis mass balance) with the differences mainly attributed to loss of some bio-oil constituents into the quenching medium, ISOPAR™. The chemical enthalpy recovery for bio-oil, char and permanent gases is calculated 64.6%, 14.5% and 7.1%, respectively. All the energy losses from the experimental unit into the environment, namely the pyrolyser, cooling unit etc. are discussed and compared to the heat of fast pyrolysis that was calculated at 1123.5 kJ per kg of beech wood. This only represents 2.4% of the biomass total enthalpy or 6.5% its HHV basis. For the estimation of some important thermo-physical properties such as heat capacity and density, it was found that using data based on the identified compounds from the GC/MS analysis is very close to the reference values despite the small fraction of the bio-oil components detected. The methodology and results can help as a starting point for the proper design of fast pyrolysis experiments, pilot and/or industrial scale plants.