A Picard-S Iterative Scheme for Approximating Fixed Point of Weak-Contraction Mappings

We study the convergence analysis of a Picard-S iteration method for a particular class of weak-contraction mappings. Furthermore, we prove a data dependence result for fixed point of the class of weak-contraction mappings with the help of the Picard-S iteration methods

A New Framework of Measuring Inequality: Variable Equivalence Scales and Group-Specific Well-Being Limits ; Sensitivity Findings for German Personal Income Distribution 1995-2009

The discussion paper examines sensitivity influences on the German personal income distribution in a time-series perspective and in a methodically broad manner. The author spins on the following "adjusting screws" of distributional analyses: (1) different kinds of equivalence scales, (2) different demarcations of income areas (in the sense of social classes), (3) different inequality indicators, and (4) different income operationalisations. Furthermore, the new approach related to measuring incomeinequality, which is presented in the paper and which incorporates variable equivalence scales, is applied to socio-demographic stratification in Germany to exemplarily demonstrate the power of this new approach. All in all, the analyses of the paper point to the necessity of a rigorous methodological foundation of distributional studies, especially concerning the selection of a set of (preferably variable) equivalence scales, the choice of the inequality indicator, and - not least - of the income variable. Thispaper refers to data from the German Socio-Economic Panel (1995-2009) in contrast to FaMa discussion paper 6/2010 which partly was similar to this paper but methodologically less elaborated; the last-mentioned paper was related to the German Income and Consumption Surveys ("Einkommens- und Verbrauchsstichproben") 1993-2003.

Energy tax harmonization in EU: Time series and panel data evidence

This paper searches statistical evidence of tax harmonization initiated and motivated by EU Commission since 1980. The purpose of energy tax harmonization is to reach more efficient use of energy among members and thereby to establish more competitive markets in EU. The tax harmonization in EU, in this work, is analyzed through convergence tests to see whether total taxes applied to oil and diesel used by industries and households are adjusted among EU members. This study, therefore, employs minimum Lagrange multiplier unit root tests with structural breaks developed by Lee and Strazicich (2003). Upon observations the data for panels, it is revealed that panels for oil industry tax, diesel industry tax, oil household tax and diesel household tax converge to average total taxes of members. Time series data for individual countries, on the other hand, give both convergence and non-convergence results.oil and diesel taxes, households and industries, harmonization, convergence, European Union, LM unit root tests with structural breaks

A Behaviouristic Approach for Measuring Poverty: The Decomposition Approach ; Empirical Illustrations for Germany 1995-2009

In this paper an alternative approach with regard to poverty measurement is discussed: the so-called decomposition approach. This method differentiates between various social groups in the sense that for each group a separate poverty line is determined. E. g., household size might be a criterion for such a social differentiation. By doing this, the problem of traditional poverty measurement to refer to income-independent equivalence scales is principally avoided. Moreover, the further problem of the traditional method, namely to determinea (general) poverty line as a more or less arbitrary fraction of society's mean welfare level, does not exist, on principle, in the decomposition approach. Present author's own calculations reveal higher poverty levels indicated by this approach compared with the conventional method of measuring (income) poverty. Since it appears to be realistic that some people perform their poverty assessments through a "mixture" of their own group's and overall welfare levels, at a plausible degree of economies of scale (i. e., Buhmann et al.'s · > 0.65) the poverty levels of the decomposition approach can be interpreted as upper limits for the "true" level of poverty, and, conversely, the degree of poverty ascertained by the conventional approach can be seen as a lower limit for "true" poverty.Welfare, poverty measurement, decomposition approach, equivalence scales

Random walk, excess smoothness or excess sensitivity? Evidence from literature and an application for Turkish economy

This paper observes the Turkish household’ consumption data to see whether it follows random walk or not. The quarterly data covers the period from 1987:1 to 2003:4. By employing the direct tests for random walk, excess smoothness or excess sensitivity, this study results in both excess sensitivity and excess smoothness and rejects random walk hypothesis for the Turkish consumption pattern.consumption, fiscal policies, seasonality, stationarity, random walk, excess smoothness, excess sensitivity

A new framework of measuring inequality: Variable equivalence scales and group-specific well-being limits. Sensitivity findings for German personal income distribution 1995-2009*

The paper examines sensitivity influences on the German personal income distribution in a time-series perspective as well as in a methodically broad manner. The author discusses the following issues: (1) For the first time, (reference) income-dependent, so-called variable equivalence scales are explicitly and extensively applied in a distributional analysis of German data which causes significant increases of income inequality compared with income-independent, constant equivalence scales. (2) Concerning different demarcations of income areas the pattern of income inequality in Germany 1995-2009 is not distinctively changed in the several variants considered. (3) For three alternative inequality indicators out of the class of Generalized Entropy indicators (mean logarithmic deviation, one of Theil’s measures of entropy, and normalized coefficient of variation), the patterns of income inequality over time are nearly the same. (4) Regarding current monthly household net income versus yearly household net income of the previous year, different patterns with respect to income inequality occur during the ob-served period of time. Especially in the first decade of the 21st century the corresponding pat-terns differ from each other. In a further step the new approach related to income distribution, which incorporates variable equivalence scales, is applied to socio-demographic stratification to exemplarily demonstrate the power of this new approach. All in all, the analyses of the paper refer to the necessity of a rigorous methodological foundation of distributional studies, especially concerning the selection of a set of (preferably variable) equivalence scales, the choice of the inequality indicator, and – not least – of the income variable.Personal income distribution; equivalence scales; inequality

The unbiasedness and efficiency tests of the rational expectations hypothesis

This study examines the direct tests of the Rational Expectations Hypothesis (REH). Pesando (1975) employs the Livingston survey data of business economists and reaches the rejection of rationality and consistency but not rejection of the efficiency. Analyzing the same data, Carlson (1977) rejects these three hypotheses that Pesando tests when he uses expectations on CPI, but doesn’t reject hypotheses as he uses expectations on WPI. Turnovsky (1980) tests the unbiasedness property of the REH using Livingston data and finds different results for the different periods of data. Friedman (1980) applies the unbiasedness and efficiency tests using data of The Goldsmith-Nagan Bond and Money Market Letter and reaches mixed results for the REH. Ball and Croushore (1995) use the several survey results and univariate forecasting models. Their results provide a strong rejection of the REH.Rational expectations hypothesis, expectations, unbiasedness, efficiency, Box-Jenkins forecasting model

Equivalence Scales Based on Revealed Preference Consumption Expenditure Microdata - The Case of West Germany zu Lüneburg

Equivalence scales are a prerequisite for any economic well-being comparison with measures on income distribution, inequality and poverty. This paper provides equivalence scales based on revealed preference consumption microdata for West Germany 1983. It is a part of a joint US and German research project comparing equivalence scales with consistent methods and similar microdata bases, recent income and consumption surveys of both countries. We concentrate on a single equation expenditure method with different Engel approaches as well as on a complete demand system approach. The complete demand system approach provides true, constant utility based equivalence scales and is specified by an extended linear expenditure system (ELES). While the Engel methods traditionally focus on food expenditures, the multiple equation expenditure system takes into account a full market basket with all its interdependencies and relative prices. Our equivalence scale study for West Germany based on actual available individual consumption expenditure data shows a variety of interesting results with regard to different goods and services baskets as well as to different household composition effects including the situation of the elderly, of the families with married couples and single mothers, and the cost of children. Our consumption results finally are compared to further consumption, expert, and subjective based equivalence scales.alternative equivalence scales, Germany, USA, distribution of income, inequality, poverty