Nighttime lights data are a measure of economic activity whose error is plausibly independent of the measurement errors of most conventional indicators. Therefore, we can use nighttime lights as an independent benchmark to assess existing measures of economic activity (Pinkovskiy and Sala-i-Martin (2016)). We employ this insight to find out which vintages of the Penn World Tables and of the World Development Indicators better estimate true income per capita. We find that revisions of the PWT do not necessarily dominate their predecessors in terms of explaining nighttime lights (and thus, predicting unobserved true income). In particular, we find that the PWT 7.1 chain-based GDP series substantially outperforms the constant-price series in both PWT 8.0 and PWT 8.1, the two most recent vintages of the PWT. We additionally find that the World Development Indicators are as good, and often better, measures of unobserved true income as are any recent vintages of the Penn World Tables. Furthermore, we find that each new round of the International Comparisons Programme (ICP) has improved the WDI's ability to predict log unobserved true income. We also find that vintages tend to be good or bad at predicting unobserved true income roughly equally across the sample period, and do not tend to be particularly good at predicting unobserved income in the year of their price survey. We conclude that GDP series based on unadjusted domestic growth rates alone predict growth rates of true income better than series based on PPP adjustments to growth rates.
Newer Need Not be Better: Evaluating the Penn World Tables and the World Development Indicators Using Nighttime Lights -- by Maxim Pinkovskiy, Xavier Sala-i-Martin
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Labor Supply in the Past, Present, and Future: a Balanced-Growth Perspective -- by Timo Boppart, Per Krusell
What explains how much people work? Going back in time, a main fact to address is the steady reduction in hours worked. The long-run data, for the U.S. as well as for other countries, show a striking pattern whereby hours worked fall steadily by a little below a half of a percent per year, accumulating to about a halving of labor supply over 150 years. In this paper, we argue that a stable utility function defined over consumption and leisure can account for this fact, jointly with the movements in the other macroeconomic aggregates, thus allowing us to view falling hours as part of a macroeconomy displaying balanced growth. The key feature of the utility function is an income effect (of higher wages) that slightly outweighs the substitution effect on hours. We also show that our proposed preference class is the only one consistent with the stated facts. The class can be viewed as an enlargement of the well-known "balanced-growth preferences" that dominate the macroeconomic literature and that demand constant (as opposed to falling) hours in the long run. The postwar U.S. experience, over which hours have shown no net decrease and which is the main argument for the use of "balanced-growth preferences", is thus a striking exception more than a representative feature of modern economies.
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Nigerian Stock Exchange Set To Implement Compliance Status Indicator Codes On Listed Companies
As part of efforts to further improve market transparency and integrity, provide timely information for investment decisions as well as enhance the protection of investors in the capital market, The Nigerian Stock Exchange ("The Exchange" or "NSE") will commence the use of enhanced Compliance Status Indicator (CSI) codes on the ticker tape for listed companies effective Monday, May 09, 2016.
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Lombard Risk Appoints Chief Technology Officer
Lombard Risk Management plc (AIM:LRM.L), a leading provider of integrated collateral management and regulatory reporting solutions for the financial services industry, is pleased to announce that Mike Payne has been appointed to the role of Chief Technology Officer, of Lombard Risk, to lead the development and delivery of software products, client application support and the internal IT infrastructure.
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Industry Collaboration Is Necessary For The Successful Application Of Blockchain In Securities Markets - New Academic Research From The SWIFT Institute Reviews The Impact And Potential For Blockchain In Securities Settlement
New research published by the SWIFT Institute investigates the practical application of blockchain (or mutual distributed ledger) technologies in securities markets.
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STOXX Monthly Index News: Commodity Price Hikes Pushed Related Sectors And Countries
In April, equity markets have been influenced by a weak US dollar. Towards the end of the month, the Fed decided to keep interest rates unchanged and did not give a hint about future decisions. As a result, the greenback decreased even more. Reversely, commodity prices hiked up and pushed the related industry sectors Basic Resources and Oil & Gas as well as stock markets in strong basic resources exporters like Norway or Canada.
Please find further information complemented by our Index of the Month – iSTOXX Europe Multi-Factor Index – within the Monthly Index News or download our research paper directly.
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Thomson Reuters 2016 Know Your Customer Surveys Reveal Escalating Costs And Complexity - Parallel Surveys Show Differing Perspectives Of Financial Institutions And Their Corporate Customers On The Effect Of Financial Firmsâ Spend Of Up To $500 Annually On KYC Globally
The lack of sufficient people resources and the volume of regulatory change are top concerns among nearly 800 financial institutions who responded to an authoritative Thomson Reuters survey on the impact of global changes in Know Your Customer (KYC) regulation, while a parallel survey of their corporate customers found that 89 percent had not had a good KYC experience, and 13 percent had changed their financial institution relationship as a result.
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09May/AgustÃn Carstens reappointed as Chair of the BIS Global Economy Meeting and the BIS Economic Consultative Committee
Press release about AgustÃn Carstens being reappointed as Chair of the BIS Global Economy Meeting and the BIS Economic Consultative Committee (9 May 2016)
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IOSCO Issues Report on Impact of Storage and Delivery Infrastructure on Commodity Derivatives Market Pricing
The Board of the International Organization of Securities Commissions today published The Impact of Storage and Delivery Infrastructure on Commodity Derivatives Market Pricing. The report sets out the findings and conclusions of the review of the impact of storage infrastructures on the integrity of the price formation process of physically-delivered commodity derivatives contracts traded on regulated exchanges. The price formation process for commodity derivatives is complex and is affected by many factors, not just the traditional elements of supply and demand. Rail cars, grain silos, oil tankers and metal warehouses are all fundamental components of a delivery system that ensures derivatives contracts can be fulfilled and commodities are delivered. Physical delivery and storage infrastructure can therefore have a profound impact on the economics of the futures markets, such as the cost of carrying the derivatives contract, convergence between the derivative and the physical market prices, and the premiums for each of the contract's delivery points.
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IOSCO Issues Report On Impact Of Storage And Delivery Infrastructure On Commodity Derivatives Market Pricing
The Board of the International Organization of Securities Commissions today published The Impact of Storage and Delivery Infrastructure on Commodity Derivatives Market Pricing. The report sets out the findings and conclusions of the review of the impact of storage infrastructures on the integrity of the price formation process of physically-delivered commodity derivatives contracts traded on regulated exchanges.
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UK's Financial Conduct Authorityâs Regulatory Sandbox Opens To Applications
The Financial Conduct Authority (FCA), today opened its regulatory sandbox to firms. The sandbox is a ‘safe space’ in which businesses can test innovative products, services, business models and delivery mechanisms while ensuring that consumers are appropriately protected. The regulatory sandbox is part of Project Innovate, an initiative kicked off in October 2014, to help us encourage innovation in the interests of consumers and promote competition through disruptive innovation.
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Bursa Malaysia Securities Publicly Reprimands KAF-Seagroatt & Campbell Berhad For Breach Of Main Market Listing Requirements
Bursa Malaysia Securities Berhad (635998-W) (Bursa Malaysia Securities) has publicly reprimanded KAF-Seagroatt & Campbell Berhad (KAF) in respect of the company’s fourth quarterly report for the financial year ended 31 May 2015 (“QR 4/2015”) announced on 31 July 2015 which was in contravention of paragraph 9.16(1)(a) of the Bursa Malaysia Securities Main Market Listing Requirements (Main LR).
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SGX Reports Market Statistics For April 2016
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DTCC Signs Memorandum Of Understanding On Cooperation With KRX
The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, and the Korea Exchange (KRX), the sole securities and derivatives exchange operator in South Korea, today announced the signing of a Memorandum of Understanding (MOU) to cooperate with each other on a Trade Repository (TR) solution in Korea.
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UK's Financial Conduct Authority: Two Convicted Of Insider Dealing In Operation Tabernula Trial
In a case brought by the Financial Conduct Authority (FCA) and following a three-month trial at Southwark Crown Court, two defendants – a senior investment banker and a Chartered Accountant – have been convicted of conspiring to insider deal between November 2006 and March 2010.
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Osaka Exchange: The Position Limits On Securities Options
OSE has set the position limits on Securities Options, which will be applied from May 13, 2016.
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A Conference Call in Real Life
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Bats Global Markets Reports Record U.S. Options Market Share In April - Exchange Group Maintains Strength Across Asset Classes
Bats Global Markets, Inc. (Bats: BATS), a leading global operator of exchanges and services for financial markets, today reported April data and highlights, including record U.S. Options market share of 11.6% vs. 9.9% a year ago.
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BOX Options Exchange Price Improvement Activity For April
In the month of April price improved contracts on BOX Options Exchange (“BOX”) averaged 297,158 per day. Price improvement versus the prevailing NBBO for contracts submitted via BOX’s price improvement auction, PIP, averaged $467,418 per day, while total savings to investors in April was $9.8M. With this, BOX has saved investors over $761M since its inception in 2004. Overall average daily trading volume on BOX in the month of April was 407,208 contracts.
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CFTC Orders Chicago-Based Cunningham Commodities, LLC And Its Controller Salvatore Carmen Russo Jointly To Pay A $150,000 Penalty For Failing To Immediately Report A Customer Segregated Account Deficiency - Cunningham Also Penalized For Its Failure To Immediately Report A Customer Residual Account Deficiency And For Its Failure To Report Special Account Positions Held By Large Traders
The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against Cunningham Commodities, LLC (Cunningham), a registered Futures Commission Merchant (FCM) based in Chicago, Illinois. The Order finds that Cunningham violated CFTC’s Regulations that 1) require an FCM to immediately report to the CFTC any deficiency in its customer segregated account or the targeted residual interest in its customer segregated account and 2) require an FCM to submit daily reports to the CFTC for positions held by certain large traders (Large Trader Reports) whose accounts are carried by the FCM.
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