Bøger i Tilburg Studies in Economics serien

This book was originally published as a doctoral thesis and was de fended by the author at the Tilburg School of Economics in 1969. In the description of the preparatory and implementation phases the author shows how a clash between practical implementation and theoretical application can successfully be avoided in this preparatory work.

The Tilburg Institute of Economics - Institute of the Economic Faculty of the Tilburg University - proposes itself to publish results of economic research taking part in the F acul ty . To facilitate the choice of the potential reader, every publication will be marked by the department, where the publication took its origin. As Mr. Schilderinck's 'Factor Analysis' applied to developed and developing countries, is a result of research in the Econometric Department, it is mark­ ed Econometrics. Every publication will be published under the supervision of the head of the department. For this reason this preface is written by the head of the Econometric Department. Mr. Schilderinck's study forms an introduction to a larger project of research, which proposes itself to develop methods of analysis, which try to eliminate the difficulties of multi-collinearity and the arbitrariness of the introduction of lags in regression analysis. This study applies the method of factor analysis to statistical material collected by the Institute of Development Problems of our University. Prof. Dr. J. J. J. Dalmulder Head of Department of Econometrics v Contents PREFACE. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . v . . . . . INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . .. . . IX . . . 1. AIM OF FACTOR ANALYSIS . . . . . . . . . . . . . . . . . . . . . 3 2. THE METHOD OF FACTOR ANALYSIS. 3 2.1 Normalisation of the variables . . . 4 2.2 Correlation and variance in factor analysis . 5 2.3 The model of the factor analysis 2.4 Solution of the model ..... . 9 2.5 Interpretation of the final aspects . 17 3. APPLICATION OF FACTOR ANALYSIS TO DATA FROM DEVELOPING COUNTRIES . . . . . . . . . . . . . . . .. . . 22 . .

Every day people frequently have to make a choice. In chapter II some mathematical concepts are presented and in chapter III two related choice models are treated, the first one based on preferences, the second one on choice functions.

Discussion was by criticism of the neo-classical concept of capital as well as by a renewed interest in the labour theory of value. Criticism of the use of a homogeneous concept of capital resulted in the re switching debate as it is called, where the positing of problems is limited, and the results are ultimately meagre.

This study stems from a long association with Yugoslavia: two years at the World Bank and a further two and a half years with the International Investment Corporation for Yugoslavia S.A.

Frisch, who in his publications 'Correlation and Scatter Analysis in Statistical Variables' (1929) and 'Statistical Confluence Analysis by means of Complete Regression Systems' (1934) first pointed out the complications that arise if one applies regression analysis to variables among which several independent linear relations exist.

Moreover, the present descriptions of management structures preclude an exact study of these structures, let alone a quantitative treatment of any influence upon it.

During the last decade, the econometric study of investment behaviour has developed from the descriptive construction of empirical investment equations, as first performed by J.

Dr. Kooyman has made a careful study of the econometric model used around 1963 by the Netherlands Central Planning Bureau, especially of eight of its most import ant behavioural equations.

The introduction of public goods into economic theory has recently received substantial attention from economists. He not only uses the duality approach to simplify formal proofs related to public goods, but he also gives an interpretation to the application of polarity operations which goes far, beyond its formal significance.

In this work the author reports on his research into the way food in novations are adopted. On the the basis of information from the literature and his own research findings, the author postulates that innovators' behaviour has a number of underlying dimensions.

In this book input-output analysis is applied to the regional economy of The Netherlands. The re~ults are based on a publication of The Netherlands Central Bureau of Statistics: Regional Accounts 1960, The Hague, Staatsuitgeverij, 1968. Dr. Schilderinck and Mr. Sinner call special attention to the structure which are concealed in the cumulated primary costs of the final demand categories. Part I of the book deals particularly with a survey of this feature of input-output analysis. Part II starts with comparing the production structure of each industry in the eleven provinces of The Netherlands by means of semi-regional tables. Next, authors analyse the structure of the induced income resulting from a surplus or deficit of each industry on current final transactions per province. Thanks to its methodical elaboration the book is a valuable guide to those confronted with the problems of regional economic analysis. J. J. J. Dalmulder Contents FOREWORD IX LIST OF TABLES XI PART ONE: THE INPUT-OUTPUT TABLE AS AN INSTRUMENT OF ANALYSIS 1 List of symbols 3 1. Introduction 5 2. The input-output table 9 3. Coefficients of the input-output table 11 3. 1 Technical coefficients 11 3. 2 Interdependence coefficients and cumulated production coef- cients 12 3. 3 Input coefficients of cumulated production 15 3. 4 Input coefficients of final demand 17 4. The example of a simple economic system 20 4. 1 The input-output table and the technical coefficients 20 4.

In this work the author reports on his research into the way food in­ novations are adopted. He deals particularly with whether food in­ novators can be distinguished, that is to say consumers who, more than other people, adopt new products not by chance but more or less systematically. The book discusses three general themes within this problem: what impels innovators, in what respects and in what characteristics are they different from others, and to what extent can their behaviour be used to fore cast the ultimate succes of an innovation. On the the basis of information from the literature and his own research findings, the author postulates that innovators' behaviour has a number of underlying dimensions. This raises aspects of interest and involvement, innovative versus problem-solving behaviour, monomor­ phic versus polymorphic innovativeness, and also some implications these have regarding operationalisation of the innovators' concept. Al­ though emphasis is put on the direct research implications, the discus­ sion of these aspects nevertheless provides a number of interesting, but more theoretical indications. The traditional image of the innovator found elsewhere in the literature is substantiated and supplemented by the characteristics of innovators disclosed by this research. Besides socio-economic criteria the research comprises a number of behavioural characteristics of in­ novators.

The first main part starts with a discussion of the general notions underlying the theory of the development of demand for new consumer durable goods and next describes the many models known from the literature, using these general notions.

In monetary theory the paramount problem posed by many eco nomists was always whether monetary variables had a certain influence on the real variables in the economy, so that money would not be neutral but influence the economic process.