Simultaneous equations

Using nationally representative data from the NLSY97 and a simultaneous equations model, this paper analyzes the financial motivations for and the effects of employment on U.S. college students’ academic performance. The data confirm the predictions of the theoretical model that lower parental transfers and greater costs of attending college increase the number of hours students work while in school, although students are not very responsive to these financial motivations. They also provide some evidence that greater hours of work lead to lower grade point averages (GPAs).

A comparison is presented in regular algebra of the Gaussian and Gauss-Jordon elimination techniques for solving sparse systems of simultaneous equations. Specifically, the elimination form and product form of the star A of a matrix A are defined and it is then shown that the product form is never more sparse than the elimination form. This result generalises an earlier

Over the last half century, the most frequently used assay for chlorophylls in higher plants and green algae, the Arnon assay [Arnon DI (1949) Plant Physiol 24: 1-15], employed simultaneous equations for determining the concentrations of chlorophylls a and b in aqueous 80% acetone extracts of chlorophyllous plant and algal materials. These equations, however, were developed using extinction coefficients for chlorophylls a and b derived from early inaccurate spectrophotometric data. Thus, Arnon's equations give inaccurate chlorophyll a and b determinations and, therefore, inaccurate chlorophyll a/b ratios, which are always low. This paper describes how the ratios are increasingly and alarmingly low as the proportion of chlorophyll a increases. Accurate extinction coefficients for chlorophylls a and b, and the more reliable simultaneous equations derived from them, have been published subsequently by many research groups; these new post-Arnon equations, however, have been ignored ...

Using a simultaneous equations framework with a comprehensive set of publicly listed Swiss companies, our findings suggest that the size of the board of directors is an independent corporate governance mechanism. This implies that any potential relationship between board size and firm valuation is indeed causal. However, in contrast to previous studies, we do not uncover a significant relationship between board size and firm valuation, which can be interpreted as support for the hypothesis of the existence of an optimal board size. On average, firms choose the number of board members just optimally. This indicates that cross-sectional variations in board size to a large extent reflect differences in firms' underlying environment, and not mistaken choices.Die Ergebnisse der Schätzung eines simultanen Gleichungssystems mit einer repräsentativen Stichprobe börsengehandelter Schweizer Unternehmen zeigen, dass die Grösse des Verwaltungsrates einen eigenständigen Corporate Governance Mechanismus darstellt. Damit kann ein möglicher Zusammenhang zwischen der Grösse des Verwaltungsrates und dem Unternehmenswert als kausal interpretiert werden. Die empirischen Ergebnisse zeigen aber keine Evidenz für einen derartigen Zusammenhang, was die Hypothese einer optimalen Grösse des Verwaltungsrates stützt. Im Durchschnitt weist der Verwaltungsrat Schweizer Unternehmen die optimale Grösse auf. Die Unterschiede in der Grösse der Verwaltungsräte der Stichprobenunternehmen können zum grossen Teil durch unternehmensspezifische Einflussgrössen erklärt werden, und sind nicht auf eine falsche Besetzung des Verwaltungsrates zurückzuführen.En utilisant un système d'équations simultané, estimé sur l'ensemble des entreprises inscrites à la bourse suisse, nos résultats montrent que la taille du conseil d'administration résulte d'un mécanisme indépendant de gouvernance d'entreprise. Ceci implique qu'il existe véritablement un lien causal entre la taille du conseil d'administration et la valeur de l'entreprise. Néanmoins, contrairement aux études précédentes, nous n'avons pas découvert de relations significatives entre ces deux éléments, ce que l'on peut interpréter comme support pour l'hypothèse de l'existence d'une grandeur optimale du conseil d'administration. Le nombre de membres du conseil d'administration est en moyenne choisi de manière optimale. Ceci indique que la variation en coupe transversale de la taille du Conseil d'administration reflète en majeure partie des différences dans l'environnement de chaque enterprise plutôt que des mauvaises décisions.

This paper analyses whether foreign direct investments have an impact on the Romanian economic growth. By means of simultaneous equation methods we obtained evidence of the bi-directional connection between the two, meaning that incoming FDI stimulates economic growth and, in its turn, a higher GDP attracts FDI. Two methods were used in performing the analysis, one considering the relation between the share of FDI in GDP and economic growth in a five-equation system and the second considering the levels of FDI and GDP, respectively, in a two-equation system.

Identifying corporate governance mechanisms to improve firm performance has been at the forefront of policy discussion and research in recent years. Existing research in this area focuses on large-capitalisation firms, and has not provided much insight on smaller firms. This paper tests for the optimality of deployment of governance mechanisms for Canadian small-cap firms by estimating a simultaneous equation system

In this paper, universal formulations of the closest approach problem are established and solved by two methods. The first method uses the technique of one-dimensional unconstraint minimization and needs the solution of the universal Kepler's equation twice, while for the second method, a constraint minimization technique is developed and needs the solution of two nonlinear simultaneous equations. Flexible iterative schemes of quadratic up to any positive integer order are developed for the solution of the universal Kepler's equation. The two methods of the minimization process are applied for the closest approach of Hyakutake and Hale–Bopp comets, while the first method is applied to obtain the minimum angular separation of ADS 9159, ADS 2959 and ADS 11632 visual binaries as typical examples of elliptic, parabolic and hyperbolic orbits.

We examine the relation between risk and IPO underpricing and test two aspects of the litigation-risk hypothesis: (1) firms with higher litigation risk underprice their IPOs by a greater amount as a form of insurance (insurance effect) and (2) higher underpricing lowers expected litigation costs (deterrence effect). To adjust for the endogeneity bias in previous studies, we use a simultaneous

The paper reviews international literature on corporate governance and firm performance and investigates the relationship in the Indian context, taking into account the endogeneity in the relationship. Governance parameters include board size, directors’ shareholding, institutional and foreign shareholding, while the fragmentation in shareholding is captured by public shareholding. A simultaneous equation regression model for Tobin’s Q, as a measure of firm performance, is attempted using these variables, while controlling for industry effects and other non-governance variables. The data corresponds to a panel of 340 large, listed Indian firms for the period 1997–2001 spread across 24 industry groups.

In this study, International tourism demand and short-run supply for Antalya-Belek hotel industry are examined via simultaneous equations econometric model using monthly data between 1998-M01 and 2006-M10. The overall goodness-of-flt of both demand and supply models is very high, suggesting a high predictive power. Through empirical Implementation of the theoretical model, several important determinants of supply and demand are identified.

The phenomenon of sponsored search advertising - where advertisers pay a fee to Internet search engines to be displayed alongside organic (non-sponsored) web search results - is gaining ground as the largest source of revenues for search engines. Using a unique 6 month panel dataset of several hundred keywords collected from a large nationwide retailer that advertises on Google, we