Contrary to standard agnostic statistical approaches an output gap estimate based on a New Keynesian Small Open Economy model provides the possibility to analyze the driving forces of the variation in GDP caused by nominal rigidities. This paper makes use of this and provides an estimate of a...

This paper investigates the determinants of Norwegian import prices of manufactures over the period 1970(1) - 1991(4). Multivariate cointegration analysis establishes a long-run relationship between import prices, foreign prices, the exchange rate and domestic unit labour costs. Normalized on...

During the last decades Norwegian exporters have - despite various forms of exchange rate targeting - faced a rather volatile exchange rate which may have influenced their behaviour. Recently, the shift to inflation targeting and a freely floating exchange rate has brought about an even more...

In this paper, we compare Principal Component Analysis (PCA) and Partial Least Squares (PLS) methods to generate weights for composite indices. In this context we also consider various treatments of non-metric variables when constructing such composite indices. Using simulation studies we find...

Different types of taxation include the market value of housing or housing returns in their tax base, making it essential to obtain accurate and up-to-date assessments of property values. However, to value residential property represents a major challenge for tax administrations due to...

Simultaneity represents a fundamental problem when estimating the elasticity of substitution between capital and labour. To overcome this problem, a wide variety of external instruments has been applied in the literature. However, the use of instruments may lead to wrong inference if they are...

The labour force surveys (LFSs) on all Eurostat countries underwent a substantial redesign in January 2021. To ensure coherent labour market time series for the main indicators in the Norwegian LFS, we model the impact of the redesign. We use a state-space model that takes explicit account of...

When decomposing differences in average economic outcome between two groups of individuals, it is common practice to base the analysis on logarithms if the dependent variable is nonnegative. This paper argues that this approach raises a number of undesired statistical and conceptual issues...

We propose a new approach for performing detailed decompositions of average outcome differentials, which can be applied to all types of generalized linear models. A simulation exercise demonstrates that our method produces more convincing results than existing methods. An empirical application...

A behavioural model of crime is developed and applied to panel data on the number of crimes and clear-ups for the 53 police districts in Norway for the period 1970-78. Data on both total crime and on 12 different types of crime is employed. The model consists of behavioural relations of the...