| Statistical Programs |
| College of Agriculture and Life Sciences |
University of Idaho |
| Seminar Announcement |
|
"Applied Statistics in Agriculture" |
|
Difference Probability Density Functions
Presented By |
| Dr. Stephen Cooke |
|
Deptartment of Agricultural Economics University of Idaho |
|
Tuesday, October 11 3:30 P. M. Ag. Science 62 |
|
Difference probability density functions (pdf) are used in this study to
identify the components of, and the sectors primarily responsible for, the
wage and industry effects in the U.S. economy. The constant elasticity of
substitution (CES) wage and industry indices are a net measure of these
effects, which are themselves the sum (in logs) of positive and negative
elements. In the process of determining the elements of the wage and
industry indices, we can discover the sectors responsible for the positive
and negative elements of both the wage and industry effects. We can use
this information to tailor an industrial policy by sector in response to
forces of productivity and competitive advantage.
The CES wage and industry indices are based on weighted average wage data that can also be expressed as a normally distributed or Gaussian probability density function (pdf). We argue that since the CES index and pdf use exactly the same wage and employment data, albeit with different weighting schemes, then it is possible to decompose the wage and industry CES indices onto positive and negative elements for each using their respective difference pdfs. |
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