Input-Output Analysis of the Norwegian Economy

International trade in intermediate inputs has been identified as a potentially powerful transmission channel for the propagation of foreign shocks to the domestic economy. Moreover, this channel has been found to be amplified through input-output linkages domestically. This note addresses the importance of these channels for the Norwegian economy. First, I study the extent to which foreign intermediates are used as inputs in the domestic sectors. The data show that almost 80 percent of Norwegian industries engage in international trade in intermediates and that foreign intermediates account for a larger share of total intermediate inputs in tradable than in non-tradable sectors. Second, I examine the extent of (cross-country) intersectoral dependence in a panel composed of five sectors. I find that the role of financial services as a source of inputs to the other industries has increased since 1992. The data also reveal marked changes in input use in the petroleum and natural gas and the financial services sectors

An Almost Ideal Demand System Analysis of Non-durable Consumption Categories

This analysis gives a number of applications of Deaton and Muellbauer (1980a)’s almost ideal demand (AID) system to annual and seasonally unadjusted quarterly household consumption data obtained from the Norwegian national accounts. Parameter estimates from the expenditure systems are utilized to generate Marshallian price and income elasticities for 10 non-durable consumption categories. The analysis compares the explanatory power of the alternative expenditure system specifications by means of the likelihood dominance criterion for model selection proposed by Pollak and Wales (1991), which shows that the dynamic linear approximate AID system incorporating habits is preferred to the other specifications. However, the evidence indicates that the homogeneous static linear approximate AID system is the only specification that (i) does not suffer from lack of precisely estimated parameters and (ii) yields results that are interpretable and empirically plausible. The analysis then evaluates how the linear approximate AID system incorporating habits performs out-of-sample. We also examine whether simpler expenditure system specifications are more suitable for forecasting. Based on the Diebold-Mariano test proposed by Diebold and Mariano (1995) we conclude that our preferred dynamic specification does not yield more accurate predictions than the dynamic linear approximate AID system incorporating habits without cross-price effects or the random walk model. The evidence also suggests that the focus of dynamic forecast analyses of non-durable consumption categories should be on obtaining accurate price predictions, as prices account for most of the variation in the commodities’ expenditure shares

Input-Output Analysis of the Norwegian Economy

International trade in intermediate inputs has been identified as a potentially powerful transmission channel for the propagation of foreign shocks to the domestic economy. Moreover, this channel has been found to be amplified through input-output linkages domestically. This note addresses the importance of these channels for the Norwegian economy. First, I study the extent to which foreign intermediates are used as inputs in the domestic sectors. The data show that almost 80 percent of Norwegian industries engage in international trade in intermediates and that foreign intermediates account for a larger share of total intermediate inputs in tradable than in non-tradable sectors. Second, I examine the extent of (cross-country) intersectoral dependence in a panel composed of five sectors. I find that the role of financial services as a source of inputs to the other industries has increased since 1992. The data also reveal marked changes in input use in the petroleum and natural gas and the financial services sectors

A Three-dimensional Ex Vivo Viability Assay Reveals a Strong Correlation Between Response to Targeted Inhibitors and Mutation Status in Melanoma Lymph Node Metastases

Although clinical management of melanoma has changed considerably in recent years, intrinsic treatment resistance remains a severe problem and strategies to design personal treatment regimens are highly warranted. We have applied a three-dimensional (3D) ex vivo drug efficacy assay, exposing disaggregated cells from 38 freshly harvested melanoma lymph node metastases and 21 patient derived xenografts (PDXs) to clinical relevant drugs for 7 days, and examined its potential to evaluate therapy response. A strong association between Vemurafenib response and BRAF mutation status was achieved (P ex vivo results, two tumors diagnosed as BRAF wild-type by routine pathology examinations had to be re-evaluated; one was subsequently found to have a complex V600E mutation, the other a double BRAF mutation (V600E/K601 N). No BRAF inhibitor resistance mechanisms were identified, but PIK3CA and NF1 mutations were identified in two highly responsive tumors. Concordance between ex vivo drug responses using tissue from PDXs and corresponding patient tumors demonstrate that PDX models represent an indefinite source of tumor material that may allow ex vivo evaluation of numerous drugs and combinations, as well as studies of underlying molecular mechanisms. In conclusion, we have established a rapid and low cost ex vivo drug efficacy assay applicable on tumor tissue from patient biopsies. The 3D/spheroid format, limiting the influence from normal adjacent cells and allowing assessment of drug sensitivity to numerous drugs in one week, confirms its potential as a supplement to guide clinical decision, in particular in identifying non-responding patients