This paper aims at extracting a common factor from major carbon pricing. For this purpose, we use a Dynamic Factor Model (DFM) for which the unobserved common factors and idiosyncratic noises are potentially non-stationary processes. The two-step Kalman smoother procedure is used to estimate the...

This paper investigates whether a common factor, which can be interpreted as a shadow carbon price, can be extracted from price series in 13 major national and subnational emission trading systems (ETSs). For this purpose, we estimate a dynamic factor model accounting for information...

Any attempt to operationalise the capability approach necessitates an adequate framework for the measurement of the abstract unobservable multidimensional concept that the term human development stands for. One such attempt is the latent variable approach including principal components, factor...

In this study, we explore the relationship between the rank of a demand system and the estimation results both in terms of consumption behaviour and more importantly in terms of welfare analysis. Money-metric utility levels given by equivalent expenditures are taken as welfare indicators for...

This paper applies the maximum likelihood technique to estimate the parameters of a money demand equation for Switzerland in which there are variable integrated of different orders and in particular of order greater than 1. The estimation method developed by the authors has been explained in...

The paper contributes to the operationalisation of the capabilities approach to welfare economics by developing and analyzing data on the freedoms of adults in Argentina. Specifically, it reports on the development and delivery of a survey instrument for measuring capabilities, calculates for...