Assessing the Precision of Compositional Data in a Stratified Double Stage Cluster Sample: Application to the Swiss Earnings Structure Survey

Precision of released figures is not only an important quality feature of official statistics, it is also essential for a good understanding of the data. In this paper we show a case study of how precision could be conveyed if the multivariate nature of data has to be taken into account. In the official release of the Swiss earnings structure survey, the total salary is broken down into several wage components. We follow Aitchison's approach for the analysis of compositional data, which is based on logratios of components. We first present diferent multivariate analyses of the compositional data whereby the wage components are broken down by economic activity classes. Then we propose a number of ways to assess precision

High and steady or low and rising? : vocational versus general education in life-cycle earnings. 'Alto y estable o bajo y en alza? : formación profesional versus general en los ingresos del ciclo de vida'.

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The long-term price-earnings ratio

price-earnings ratio;value premium;arbitrage trading rule;UK stock returns;contrarian investment Abstract:  The price-earnings effect has been thoroughly documented and is the subject of numerous academic studies. However, in existing research it has almost exclusively been calculated on the basis of the previous year's earnings. We show that the power of the effect has until now been seriously underestimated due to taking too short-term a view of earnings. Looking at all UK companies since 1975, using the traditional P/E ratio we find the difference in average annual returns between the value and glamour deciles to be 6%. This is similar to other authors' findings. We are able to almost double the value premium by calculating the P/E ratio using earnings averaged over the previous eight years.

Identified consumers: an experiment on the informativeness of cross-demand price effects

Often, firms have no information on the specification of the true demand model they are faced with. It is, however, a well established fact that trial-and-error algorithms may be used by them in order to learn how to make optimal decisions. Using experimental methods, we identify a property of the information on past actions which helps the seller of two asymmetric demand substitutes to reach the optimal prices more precisely and faster. The property concerns the possibility of disaggregating changes in each product’s demand into client exit/entry and shift from one product to the other.