Convergence diagnostics for MCMC

http://www.people.fas.harvard.edu/~plam/teaching/methods/convergence/convergence_print.pdf

http://www.bayesian-inference.com/softwaredoc/Gelman.Diagnostic

Notes to the Economic Outlook Annex Tables (OECD)

http://www.oecd.org/economy/outlook/notestotheeconomicoutlookannextables.htm

Active population

Economically active population comprises all persons of either sex who furnish the supply of labour for the production of economic goods and services as defined by the United Nations System of National Accounts during a specified time-reference period.

http://stats.oecd.org/glossary/detail.asp?ID=730


Labor force = Employment + Unemployment

Participation rates  = Labor force / Working-age population (15-64)

http://www.oecd.org/economy/outlook/eosources-notestostatisticalannextables11-19wagescostsunemploymentandinflation.htm#t_13

Hours worked for OECD countries

Ohanian, L. E. and A. Raffo. 2012. "Aggregate Hours Worked in Oecd Countries: New Measurement and Implications for Business Cycles." Journal of Monetary Economics, 59(1), 40-56.

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Specifically, we show that employment is a poor proxy for labor input in many OECD countries, as changes in hours per worker are about as large as changes in employment. We also find that employment-based labor wedges are much too large in Europe, given high European firing costs, while hours-based labor wedges are comparatively too small. Finally, we find that the Great Recession is a substantial puzzle in Europe, as both employment-based and hours-based labor wedges are nearly zero in many European countries. This stands in sharp contrast to labor wedges in the U.S. during the Great Recession, or labor wedges in other European recessions, both of which are an order of magnitude larger.
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First,... Second,... Third,... Finally,...

http://www.geocities.jp/kusumotokeiji/eigo5sasisuse.htm

Small open economies

Baxter, M. and M. J. Crucini. 1995. "Business Cycles and the Asset Structure of Foreign-Trade." International Economic Review

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A second strand of literature studies business cycles in small open economies. These studies typically restrict access to international risk sharing in ways that seem, empirically, to be more reasonable than the assumption of complete markets. But these analyses are necessarily silent on the factors affecting world interest rates and asset prices.
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In contrast

http://eikaiwable.net/content/in-contrast-on-the-contrary

On the contrary/ To the contrary

http://niteowl.at.webry.info/200408/article_11.html

Complete vs. Incomplete Market (2)

Baxter, M. and M. J. Crucini. 1995. "Business Cycles and the Asset Structure of Foreign-Trade." International Economic Review

International correlation puzzles for consumption and output

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As discussed by Backus, Kehoe, and Kydland (1992) and Baxter and Crucini (1993), the complete markets economy does reasonably well in matching thewithin-country stylized facts concerning volatility and persistence of macro aggregates.  Much more problematic are the complete markets model's implications for cross-country correlations of output, consumption, investment, and labor input.  Specifically, this model has difficulty generating positive output comovement (and correspondingly positive comovement of investments and labor inputs across countries). Further, the model predicts a level of cross-country consumption correlationthat is much too high relative to the data.

Because individuals are subject to idiosyncratic (nation-specific) risk in the bond economy, in equilibrium this economy will display nation-specific fluctuations in consumption. Thus we expect that the international correlation between consumptionsshould be lower in the bond economy, and it is-but not much lower.

Similarly, we expect the absence of insurance against labor income risk in the bond economy to alter the response of labor input to productivity shocks. In the complete markets economy, the response to a positive productivity shock in one country generates an increase in labor input in the productive country, and a tendency for a decline in labor input in the relatively unproductive country. Because of the optimal insurance character of the complete markets equilibrium, workers in the productive country agree to "share" some of the additional output generated by the increase in productivity and labor input, in exchange for similar "sharing"when the other country receives a positive productivity shock. In the bond economy, individuals can only smooth consumption across time (by buying or selling bonds); they cannot smooth consumption across different "states of nature" because of the absence of contingent securities. This reduces the tendency for labor input to decline in the temporarily unproductive location.
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Perpetual Inventory Method

http://faculty.apec.umn.edu/rsmith/documents/CreateCapitalStock.pdf

http://www.econ.umn.edu/~selis004/su11_3102/GrowthAccountingNotes.pdf

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When calculating real investment, it is best to collect data on nominal investment and then deflate the series by a GDP deflator. This procedure ensures the real investment series, and, thus, the capital stock series, and the real GDP series are deflatedby the same price index.
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http://acta.mendelu.cz/pdf/actaun201361072367.pdf

http://www.econstor.eu/bitstream/10419/71091/1/73983858X.pdf

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Aware of this problem, HARBERGER (1978) uses three-year averages instead of a single year to generate more stable and reliable capital stock estimates. In a later application of the Steady State Approach, NEHRU and DHARESHWAR (1993) proposed an alternative procedure. In order to generate a reliable initial value of the investment time series they regress the time series of log investments on time and then use the fitted value for the first period to calculate the initial capital stock.
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