A NOVEL AND SIMPLE RULE OF THUMB FOR MULTIPLICITY CONTROL IN EQUIVALENCE TESTING USING TWO ONE-SIDED TESTS

Equivalence testing is growing in use in scientific research outside of its traditional role in the drug approval process. Largely due to its ease of use and recommendation from the United States Food and Drug Administration guidance, the most common statistical method for testing (bio)equivalence is the two one-sided tests procedure (TOST). Like classical point-null hypothesis testing, TOST is subject to multiplicity concerns as more comparisons are made. In this manuscript, a condition that bounds the family-wise error rate (FWER) using TOST is given. This condition then leads to a simple solution for controlling the FWER. Specifically, we demonstrate that if all pairwise comparisons of k independent groups are being evaluated for equivalence, then simply scaling the nominal Type I error rate down by (k - 1) is sufficient to maintain the family-wise error rate at the desired value or less. The resulting rule is much less conservative than the equally simple Bonferroni correction. An example of equivalence testing in a non drug-development setting is given.

Comparison of common dredging equipment air emissions

The purpose of this study is to provide a procedure to include emissions to the atmosphere resulting from the combustion of diesel fuel during dredging operations into the decision-making process of dredging equipment selection. The proposed procedure is demonstrated for typical dredging methods and data from the Illinois Waterway as performed by the U.S. Army Corps of Engineers, Rock Island District. The equipment included in this study is a 16-inch cutterhead pipeline dredge and a mechanical bucket dredge used during the 2005 dredging season on the Illinois Waterway. Considerable effort has been put forth to identify and reduce environmental impacts from dredging operations. Though environmental impacts of dredging have been studied no efforts have been applied to the evaluation of air emissions from comparable types of dredging equipment, as in this study. By identifying the type of dredging equipment with the lowest air emissions, when cost, site conditions, and equipment availability are comparable, adverse environmental impacts can be minimized without compromising the dredging project. A total of 48 scenarios were developed by varying the dredged material quantity, transport distance, and production rates. This produced an “envelope” of results applicable to a broad range of site conditions. Total diesel fuel consumed was calculated using standard cost estimating practices as defined in the U.S. Army Corps of Engineers Construction Equipment Ownership and Operating Expense Schedule (USACE, 2005). The diesel fuel usage was estimated for all equipment used to mobilize and/or operate each dredging crew for every scenario. A Limited Life Cycle Assessment (LCA) was used to estimate the air emissions from two comparable dredging operations utilizing SimaPro LCA software. An Environmental Impact Single Score (EISS) was the SimaPro output selected for comparison with the cost per CY of dredging, potential production rates, and transport distances to identify possible decision points. The total dredging time was estimated for each dredging crew and scenario. An average hourly cost for both dredging crews was calculated based on Rock Island District 2005 dredging season records (Graham 2007/08). The results from this study confirm commonly used rules of thumb in the dredging industry by indicating that mechanical bucket dredges are better suited for long transport distances and have lower air emissions and cost per CY for smaller quantities of dredged material. In addition, the results show that a cutterhead pipeline dredge would be preferable for moderate and large volumes of dredged material when no additional booster pumps are required. Finally, the results indicate that production rates can be a significant factor when evaluating the air emissions from comparable dredging equipment.

Rules of Origin and Local Content in East Asia

Rules of Origin (RoO) are an integral part of all trade rules. In order to be eligible for Common Effective Preferential Tariffs (CEPT) under AFTA and similar arrangements under the ASEAN-China FTA, a product must satisfy the conditions relative to local content. The paper tries to calculate local content as well as cumulative local content in East Asian economies, with use of the Asian International Input-Output Tables; it also investigates factors of change in local content by applying decomposition analysis. The paper finds that the cumulation rule increased local content of the electronics industry more significantly than local content of the automotive industry, and the contribution of the cumulation rule increased in the period 1990-2000, due to rising dependency on neighboring ASEAN countries and China.

Impacts of common rules of origin on FTA utilization

This paper examines empirically the impacts of sharing rules of origin (RoOs) with other ASEAN+1 free trade agreements (FTAs) on ASEAN-Korea FTA/ASEAN-China FTA utilization in Thai exports in 2011. Our careful empirical analysis suggests that the harmonization of RoOs across FTAs play some role in reducing the costs yielded through the spaghetti bowl phenomenon. In particular, the harmonization to "change-in-tariff classification (CTC) or real value-added content (RVC)" will play a relatively positive role in not seriously discouraging firms’ use of multiple FTA schemes. On the other hand, the harmonization to CTC or CTC&RVC hinders firms from using those schemes.