The Challenge of the Composition Effect

2009 ◽  
Author(s):  
Igor Kozhanov
Keyword(s):  
Composition Effect

The Portfolio Composition Effect

2020 ◽  
Author(s):  
Jan Müller-Dethard ◽  
Martin Weber
Keyword(s):  
Composition Effect ◽  
Portfolio Composition

scholarly journals Disaggregation of official demographic projections in sub-groups by education level: the neglected “composition effect” in the future path of life expectancy

Genus ◽  
2021 ◽  
Vol 77 (1) ◽  
Author(s):  
Sergio Ginebri ◽  
Carlo Lallo
Keyword(s):  
High Education ◽  
Life Expectancy ◽  
Education Level ◽  
Retirement Age ◽  
Composition Effect ◽  
Education Group ◽  
Population Forecasts ◽  
Low Education ◽  
Mortality Differential ◽  
Education Groups

AbstractWe developed an innovative method to break down official population forecasts by educational level. The mortality rates of the high education group and low education group were projected using an iterative procedure, whose starting point was the life tables by education level for Italy, based on the year 2012. We provide a set of different scenarios on the convergence/divergence of the mortality differential between the high and low education groups. In each scenario, the demographic size and the life expectancy of the two sub-groups were projected annually over the period 2018–2065. We compared the life expectancy paths in the whole population and in the sub-groups. We found that in all of our projections, population life expectancy converges to the life expectancy of the high education group. We call this feature of our outcomes the “composition effect”, and we show how highly persistent it is, even in scenarios where the mortality differential between social groups is assumed to decrease over time. In a midway scenario, where the mortality differential is assumed to follow an intermediate path between complete disappearance in year 2065 and stability at the 2012 level, and in all the scenarios with a milder convergence hypothesis, our “composition effect” prevails over the effect of convergence for men and women. For instance, assuming stability in the mortality differential, we estimated a life expectancy increase at age 65 of 2.9 and 2.6 years for men, and 3.2 and 3.1 for women, in the low and high education groups, respectively, over the whole projection period. Over the same period, Italian official projections estimate an increase of 3.7 years in life expectancy at age 65 for the whole population. Our results have relevant implications for retirement and ageing policies, in particular for those European countries that have linked statutory retirement age to variations in population life expectancies. In all the scenarios where the composition effect is not offset by a strong convergence of mortality differentials, we show that the statutory retirement age increases faster than the group-specific life expectancies, and this finding implies that the expected time spent in retirement will shrink for the whole population. This potential future outcome seems to be an unintended consequence of the indexation rule.

scholarly journals Ten Facts on Declining Business Dynamism and Lessons from Endogenous Growth Theory

2021 ◽  
Vol 13 (1) ◽  
pp. 257-298
Author(s):  
Ufuk Akcigit ◽  
Sina T. Ates
Keyword(s):  
United States ◽  
Endogenous Growth ◽  
Knowledge Diffusion ◽  
The United States ◽  
Market Concentration ◽  
Growth Theory ◽  
Composition Effect ◽  
Incentive Effect ◽  
Endogenous Growth Theory ◽  
Theoretical Predictions

In this paper, we review the literature on declining business dynamism and its implications in the United States and propose a unifying theory to analyze the symptoms and the potential causes of this decline. We first highlight 10 pronounced stylized facts related to declining business dynamism documented in the literature and discuss some of the existing attempts to explain them. We then describe a theoretical framework of endogenous markups, innovation, and competition that can potentially speak to all of these facts jointly. We next explore some theoretical predictions of this framework, which are shaped by two interacting forces: a composition effect that determines the market concentration and an incentive effect that determines how firms respond to a given concentration in the economy. The results highlight that a decline in knowledge diffusion between frontier and laggard firms could be a significant driver of empirical trends observed in the data. This study emphasizes the potential of growth theory for the analysis of factors behind declining business dynamism and the need for further investigation in this direction. (JEL D33, E25, J24, L13, O33, O34)

scholarly journals A retrieved context model of the emotional modulation of memory

2017 ◽  
Author(s):  
Deborah Talmi ◽  
Lynn J. Lohnas ◽  
Nathaniel D. Daw
Keyword(s):  
Emotional Memory ◽  
Temporal Context ◽  
Composition Effect ◽  
Context Model ◽  
Emotional Modulation ◽  
Emotional Information ◽  
Retrieval Processes ◽  
The Rich ◽  
Context Models ◽  
Evolutionary Fitness

AbstractEmotion enhances episodic memory, an effect thought to be an adaptation to prioritise the memories that best serve evolutionary fitness. But viewing this effect largely in terms of prioritising what to encode or consolidate neglects broader rational considerations about what sorts of associations should be formed at encoding, and which should be retrieved later. Although neurobiological investigations have provided many mechanistic clues about how emotional arousal modulates item memory, these effects have not been wholly integrated with the cognitive and computational neuroscience of memory more generally.Here we apply the Context Maintenance and Retrieval Model (CMR, Polyn, Norman & Kahana, 2009) to this problem by extending it to describe the way people may represent and process emotional information. A number of ways to operationalise the effect of emotion were tested. The winning emotional CMR (eCMR) model reconceptualises emotional memory effects as arising from the modulation of a process by which memories become bound to ever-changing temporal and emotional contexts. eCMR provides a good qualitative fit for the emotional list-composition effect and the emotional oddball effect, illuminating how these effects are jointly determined by the interplay of encoding and retrieval processes. eCMR explains the increased advantage of emotional memories in delayed memory tests through the limited ability of retrieval to reinstate the temporal context of encoding.By leveraging the rich tradition of temporal context models, eCMR helps integrate existing effects of emotion and provides a powerful tool to test mechanisms by which emotion affects memory in a broad range of paradigms.

scholarly journals Decomposition Analysis of CO2 Emissions for Turkey and Iran over 1990-2010

2014 ◽  
Author(s):  
Hasan Rüstemoğlu ◽  
Sevin Uğural
Keyword(s):  
Co2 Emissions ◽  
Scale Effect ◽  
Energy Intensity ◽  
Decomposition Analysis ◽  
Carbon Intensity ◽  
Composition Effect ◽  
Economic Sectors ◽  
Intensity Effect ◽  
The World ◽  
Laspeyres Index

There exists an important awareness for reduction of CO2 emissions to obtain a sustainable world. Together with this, there is a great deal of interest for decomposition analysis to see the accelerating and decelerating factors of CO2 emissions. The aim of this project is to decompose CO2 emissions in economic sectors for the two superpowers of Middle East, Iran and Turkey, over the time period between 1990 and 2010, for Turkey obtained a rapid growth performance in recent years and Iran which is the energy superpower of the world. Refined Laspeyres Index decomposition method and a consistent data gathered from the World Bank’s and UN’s databases have been used during the analysis. Five main sectors (agriculture, manufacturing, transportation, construction and other service sectors) and four main impacts (scale effect, composition effect, energy intensity effect and carbon intensity effect) have been considered to see the increasing and decreasing factors of CO2 emissions. Various interesting results are observed for both of the countries, for each of the economic sectors. Generally scale effect and energy intensity effect are the dominant impacts for all sectors of both countries. However composition effect and carbon intensity effect are also important contributors for economic activities of these two countries. Overall, our analysis showed that these two countries should pay attention for energy intensity and sustainable economic growth.

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