Peer Methods for the Solution of Large-Scale Differential Matrix Equations

We consider the application of implicit and linearly implicit (Rosenbrock-type) peer methods to matrix-valued ordinary differential equations. In particular the differential Riccati equation (DRE) is investigated. For the Rosenbrock-type schemes, a reformulation capable of avoiding a number of Jacobian applications is developed that, in the autonomous case, reduces the computational complexity of the algorithms. Dealing with large-scale problems, an efficient implementation based on low-rank symmetric indefinite factorizations is presented. The performance of both peer approaches up to order 4 is compared to existing implicit time integration schemes for matrix-valued differential equations.Comment: 29 pages, 2 figures (including 6 subfigures each), 3 tables, Corrected typo

Mergers Among German Cooperative Banks. A Panel-based Stochastic Frontier Analysis

Based on an unbalanced panel of all Bavarian cooperative banks for the years of 1989-97 which includes information on 283 mergers, we analyze motives and cost effects of small-scale mergers in German banking. Estimating a frontier cost function with a time-variable stochastic efficiency term we show that positive scale and scope effects from a merger arise only if the merged unit closes part of the former branch network. When we compare actual mergers to a simulation of hypothetical mergers, size effects of observed mergers turn out to be slightly more favorable than for all possible mergers. Banks taken over by others are less efficient than the average bank in the same size class, but exhibit on average the same efficiency as the acquiring firms. For the post-merger phase, our empirical results provide no evidence for efficiency gains from merging, but point instead to a leveling off of differences among the merging units.banking, mergers, efficiency, stochastic frontier

Sanctions under GATT article XIX versus voluntary export restraints

Voluntary export restraints play a substantial part in international trade today. This article compares the effects such restraints have upon certain exporting countries with the effect of sanctions applied under Article XIX of the GATT. It is shown that the microeconomic protectionism analysis used as a basis for the current debate on the reform of the GATT is unable to provide a conclusive answer as to which variant of protectionism would be preferable from the exporting economies' point of view. The article also indicates the direction in which existing research shortcomings can be reduced

Short-run effects of economic reforms in Eastern Economies

The policy of reform in the former Eastern Bloc countries is relying on introducing the mechanisms of the market economy. However, the process of putting such changes into practice with concrete measures has to overcome a number of impediments which have so far hardly been considered by the reformers. The impediments are partly generated by rigidities which are an inevitable aspect of the adjustment process from a planned to a market economy

Does the new protectionsm really harm all trading countries?

The following article considers the effects triggered by exporting countries' reactions to the new protectionism. It demonstrates that if the analysis is broadened to take account of macro-economic interdependence the assessment of the trade interests, for instance, of “new” exporting countries such as the NICs must be revise