Final Post

I have now completed all assessable components of my treatise and as you would expect I am very relieved. I thought the presentation went quite well as I was able to effectively convey my project, results and what they mean to the audience.

The full presentation can be accessed at: Treatise Presentation 2007 - SaveFile.com project


I would like to thank everyone that was involved in the entire process from my supervisors Dr. Simon Poon and Dr. Rafael Calvo to my friends and family. It has been an incredibly rewarding and memorable experience where I learned a lot both academically and personally. My hardwork has also payed off as next Monday Iw ill be meeting with Dr.Poon to refine my treatise to be in a journal format so the findings can be published for both the School of Information Technologies and also in information system journals. Thankyou and Goodbye.

References

Here is the list of references which I used in my project and I promised to provide in my previous post:

[1] R. M. Solow, "We'd Better Watch Out," in New York Times 1987, p. 36.

[2] S. Roach, "America's Technology Dilemma: a Profile of the Information Economy," Morgan Stanley Special Economic Study, New York 1987.

[3] J. Davis and S. Poon, "The Economic Contribution of Software: An Alternative Perspective on the Productivity Paradox," in Proceedings of the 25th International Conference on Information Systems (ICIS2004), Washington D.C, 2004, pp. 863-876.

[4] E. Brynjolfsson and L. Hitt, "Paradox Lost? Firm-level evidence on the returns to information systems spending," Management Science, vol. 42, pp. 541-558, 1996.

[5] E. Brynjolfsson and L. Hitt, "Beyond Computation: Information Technology, organizational transformation and business performance," Journal of Economic Perspectives, vol. 14, pp. 43-48, 2000.

[6] D. Jorgenson and K. Stiroh, "Raising the speed limit: U.S. economic growth in the information age.," in Brookings Papers on Economic Activity. vol. 1, 2000, pp. 112-235.

[7] J. Dedrick and K. Kraemer, "The productivity paradox: Is it resolved? Is it a new one? What does it all meant for management?," Centre for Research on Information Technology and Organizations. I.T. in Business. 2001.

[8] J. Dedrick, V. Gurbaxani, and K. Kraemer, "Information Technology and Economic Performance: A critical review of the Empirical Evidence," ACM Computing Surveys, vol. 35, pp. 1-26, 2003.

[9] N. Melville, K. Kraemer, and V. Gurbaxani, " Information Technology and organizational performance: an integrative model of IT business value," MIS Quarterly, vol. 28, pp. 283-322, 2004.

[10] M. L. Markus and D. Robey, "Information Technology and Organizational Change: Causal Strcuture in Theory and Research," Management Science, vol. 34, pp. 563-598, 1988.

[11] P. Romer, "Beyond the Knowledge Worker," in Wordlink

1995, pp. 56-60.

[12] C. S. Langdon, "Does IT Matter? An HBR Debate," in Harvard Business Review: Letters to the Editor. vol. 2007, 2003.

[13] D. Parham, P. Roberts, and S. Haishun, "Information Technology and Australia's Productivity Surge," Australian Productivity Commission, Canberra 2001.

[14] ABS, "Information and Communication Technology," Australian Bureau of Statistics, Canberra 8126, 26 September 2006.

[15] "ICT Creates half Australia's trade deficit," in IDG Communications, 2003.

[16] J. Gali, P. Gretton, and D. Parham, "The effects of ICTs and complementary innovations on Australian productivity growth," OECD Publications Service, 2004.

[17] G. Banks, "The Role of ICT in Australia's Economic Performance," in Communications Research Forum Rydges Lakeside, Canberra, 2001.

[18] C. Min and S. Dewan, "The Substitution of Information Technology for Other factors of Production: A firm level analysis," Management Science, vol. 43, pp. 1660-1675, 1997.

[19] L. Hitt and E. Snir, "The Role of Information Technology in Modern

Production: Complement or Substitute to Other Inputs?," University of Pennsylvania, Wharton School, 1999.

[20] S. Mun and D. Hong, "An Analysis of Elasticity of Substitution for the Production Function With IT Capital, Labor and Non-IT Capital," Economic Papers, vol. 7, pp. 165-176, 2004.

[21] E. Brynjolfsson and L. Hitt, "Information Technology as a factor of production: The role of differences among firms," Economic innovation new technology, vol. 3, pp. 183-199, 1995.

[22] F. Lichtenberg and B. Lehr, "Information Technology and its Impact on Firm-level Productivity: Evidence from Government and Private Data Sources, 1977-1993," in CSLS Conference on Service Sector Productivity and the Productivity Paradox Chatewa Laurier Hotel, Canada, 1997.

[23] K. Zhu, "The Complementarity of Information Technology Infrastructure and E-commerce Capability: A Resource-Bases Assessment of Their Business Value," Journal Of Information Systems, vol. 21, pp. 167-202, 2004.

[24] M. J. Tippins and R. S. Sohi, "IT competency and firm performance: Is organizational learning a missing link," Strategic Management Journal, vol. 21, pp. 745-761, 2003.

[25] "ICT Use and Productivity: A Synthesis from Studies of Australian Firms," Productivity Commission, Canberra 2004.

[26] P. David, "Understanding Digital Technology's Evolution and the Path of Measured Productivity Growth:

Present and Future in the Mirror of the Past," in Understanding the Digital Economy: Data, Tools and Research, E. Brynjolfsson and B. Kahin, Eds. Massachusetts: The MIT Press, 2000, pp. 50-85.

[27] K. Stiroh, "What Drives Productivity?," Economic Policy Revue, vol. 7, pp. 37-59, 2001.

[28] D. W. Joregenson, "The Embodiment Hypothesis," The Journal of Political Economy, vol. 74, pp. 1-17, 1966.

[29] M. L. Markus and R. I. Benjamin, "The Magic Bullet Theory in IT-Enabled Transformation," in Sloan Management Review Winter, 1997.

[30] R. G. Lipsey, C. Bekar, and K. Carlaw, "What Requires Explanation?," in General Purpose Technologies and Economic Growth, E. Helpman, Ed. Massachusetts: MIT Press, 1998.

[31] D. Parham, "ICT:An engine or enabler of Australia's productivity growth," in Asia Pacific Productivity Conference Brisbane, 2004.

[32] J. Gali, P. Gretton, and P. Dean, "The effects of ICTs and complementary innovations on Australian productivity growth," OECD Publications Service, 2004.

[33] S. Zuboff, In the age of the Smart Machine: The Future of Work and Power. New York: Basic Books, 1988.

[34] OECD, "Annex1: Methodology and Definitions," in Information Technology Outlook: ICT's and the Information Economy Paris, 2002.

[35] R. G. Lipsey, K. Carlaw, and C. Bekar, "What Requires Explanation," in General Purpose Technologies and Economic Growth, E. Helpman, Ed. Massachusetts: MIT Press, 1998.

[36] T. Bresnahan and M. Trajtenberg, "General Purpose Technologies: Engines of Growth," Journal of Econometrics, vol. 66, pp. 83-108, 1995.

[37] P. Strassman, The Business Value of Computers: An Executive's Guide. New Canaan, CT: Information Economic Press, 1990.

[38] S. Roach, "Services under siege: The restructuring imperative," Harvard Business Review, vol. 39, pp. 82-92, 1991.

[39] E. Brynjolfsson and L. Hitt, "Beyond the Productivity Paradox: Computers are the catalyst for bigger changes," Communications of the ACM, vol. 41, pp. 49-55, 1998.

[40] S. Devarj and R. Kohli, "Measuring Information Technology Payoff: A Meta-Analysis of Structural Variables in Firm-Level Empirical Research," Information Systems Research, vol. 14, 2003.

[41] B. Moulten, "GDP and the Digital Economy: Keeping up with the Changes," in Understanding the Digital Economy: Data, Tools and Research, E. Brynjolfsson and B. Kahin, Eds. Massachusetts: MIT Press, 2000, pp. 35-48.

[42] E. Brynjolfsson and S. Yang, "Information Technology and Productivity: A Review of the Literature," Advances in Computers, vol. 43, pp. 179-214, 1996.

[43] A. Bharadwaj, "A resource-based perspective on information technology capability and firm performance: An empirical investigation," MIS Quarterly, vol. 24, pp. 169-196, 2000.

[44] W. Schulze, "The two resource based models of the firm," in Academy of Management Best Paper Proceedings, 1992.

[45] E. Brynjolfsson and L. Hitt, "Computing Productivity: Firm level evidence," The Review of Economics and Statitics, vol. 85, pp. 793-808, 2003.

[46] K. Carlaw, "ICT in Australian Economic Performace: An Investigation of the Assumptions Influencing Productivity Estimates," in Asia Pacific Productivity Conference Brisbane, 2004.

[47] P. Commission, "ICT Use and Productivity: A Synthesis from Studies of Australian Firms," Commission Research Paper, Canberra 2004.

[48] D. Pilat and A. Wolfl, "ICT production and ICT use: What role in aggregate productivity growth," OECD Publication Service, 2004.

[49] H. T. Wagner and T. Weitzel, "Towards an IT production function: understanding routines as fundament of IT value creation," Journal Of Information Systems, 2007.

[50] M. Haynes and S. Thompson, "The Productivity Impact of IT Deployment: An Empirical Evaluation of ATM Introduction," Oxford Bulletin of Economics and Statistics, vol. 62, pp. 607-619, 2000.

[51] R. N. Mefford, "Introducing Management into the Production Function," The Review of Economics and Statistics, vol. 68, pp. 96-104, 1986.

[52] M. Mahmood, I. Mann, M. Dubrow, and J. Skidmore, "Information technology investment and organization performance: A lagged data analysis

" in Resources Management Association International Conference, Harrisburg Pennsylvania, 1998, pp. 755-773.

[53] A. Rai, R. Patnayakuni, and N. Patnayakuni, "Technology Investment and business performance," Communications of the ACM, vol. 40, pp. 89-97, 1997.

[54] K. Stiroh, "Infromation Technology and the U.S. productivity revival: What does the industry data say?," New York: Federal Reserve Bank, 2001.

[55] P. Strassman, Information Productivity- Assesting the informaiton management costs of U.S. industrial corporation. New Canaan: The Information Economics Press, 1999.

[56] P. Strassman, The persistence of the computer paradox. A critique of effort to disprove the computer paradox. New Canaan Connecticut: The information economics press, 2002.

[57] D. Jorgenson and K. Stiroh, "Raising the speed limit: U.S. economic growth int he information age.," in Brookings Papers on Economic Activity. vol. 1, 2000, pp. 112-235.

[58] F. J. Mata, W. L. Fuerst, and J. B. Barney, "Information Technology and Sustained Competitive Advanage: A resource based analysis," MIS Quarterly, vol. 19, pp. 487-505, 1995.

[59] H. Chun and S. B. Mun, "Substitutability and Accumulation of Information Technology in U.S. Industries," Southern Economic Journal, vol. 72, pp. 1002-1015, 2006.

[60] B. B. Shao and W. T. Lin, "The Business Value of Information Technology and Inputs Substitution: The productivity paradox revisited," Decising Support Systems, vol. 42, pp. 493-507, 2006.

[61] E. Brynjolfsson and L. Hitt, "Is Information System Spending Productive? New evidence and new results," Massachusetts: Sloan School of Management

MIT, 1995.

[62] D. N. Gujarati, Basic Econometrics, 4 ed. Sydney: McGraw Hill, 2004.

[63] F. Lichtenberg, "Aggregation Of Variables in Least-Squares Regression," The American Statistician, vol. 44, pp. 169-171, 1990.

[64] C. Findlay, D. McTaggart, and M. Parkin, Microeconomics, 4th ed. Sydney: Pearson Education, 2003.

[65] A. Aizcorbe, "Testing the Validity of Aggregates," Journal of Business & Economic Statistics, vol. 8, pp. 373-383, 1990.

[66] M. Fuss, D. McFadden, and Y. Mundlak, "A survey of functional forms in the Economic Analysis of Production," in Production Economics, 2 ed New York: North Holland, 1978, p. 244.

[67] E. Brynjolfsson and L. Hitt, "Is Information System Spending Productive? New evidence and new results," in Proceedings of the International Conference on Information Systems, 1993.

[68] R. H. McGukin and K. J. Stiroh, "Computers and Productivity: Are Aggregation Effects Important?," Economic Enquiry, vol. 40, pp. 42-59, 2002.

[69] C. S. Langdon, "Does IT Mattery? An HBR Debate," in Harvard Business Review: Letters to the Editor. vol. 2007, 2003.

[70] D. McFadden, "Constant Elasticities of Substituion Production Function," Reveiw Economic Studies, vol. 30, pp. 73-83, 1963.

[71] H. Uzawa, "Production Functions with constant elasticities of substitution," Reveiw Economic Studies, vol. 29, pp. 291-299, 1962.

[72] L. R. Christensen, D. W. Jorgenson, and L. J. Lau, "Conjugate Duality and the Transcendental Logarithmic Production Function," Cambridge, England, 1970.

[73] L. Hitt and E. Snir, "The Role of Information Technology in Modern Production: Complement or Substitute to Other Inputs," 1999.

[74] W. H. Greene, Econometric Analysis, 5 ed. Sydney: Pearson Education International, 2003.

[75] J. R. Hicks, The Theory of Wages, 2 ed. London: Macmillan, 1963.

[76] G. E. Battese, T. Coelli, and P. Rao, "An Introduction to efficiency in productivity analysis," Springer, 1998.

[77] T. Koizumi and R. Sato., "On the Elasticities of Substitution and Complementarity," Oxford Economic Papers, vol. 25, pp. 44-56, March 1973 1973.

[78] M. Syrquin and G. Hollender, "Elasticities of Substitution and Complementarity: The General Case," Oxford Economic Papers, vol. 34, pp. 515-519, 1982.

[79] R. Chambers, Applied Production Analysis. New York: Cambridge University Press, 1988.

[80] ABS, "Summary of Findings and Proposed changes," Australian Bureau of Statistics 1998.

[81] D. Trewin, "Australian System of National Accounts: Concepts Sources and Methods," Australian Bureau of Statistics, Canberra 2000.

[82] R. Boucekkine, D. De La Croix, and O. Licandro, "Vintage Capital," Louvain: Department of Economics and CORE, Université catholique de Louvain, 2006.

[83] P. Romer, "Increasing Return and Long Run Growth," Jounral of Political Economy, vol. October, pp. 1002-1037, 1986.

[84] C. Blackorby and R. R. Russel, "Will the Real Elasticity of Substitution Please Stand Up? (A comparison of the Allen/Uzawa and Morishima Elasticities)," The American Economic Review, vol. 79, pp. 882-888, 1989.

[85] V. Gurbaxani, "Does IT matter? An HBR Debate," in Harvard Business Review:Letters to the Editor, 2003, p. 14.

Final Thesis Hand in

Apologies for the belated blog spot I have been feverishly been putting the final touches on my thesis which I have just handed in FINALLY :)

I was planning on handing it in yesterday and attending the practice presentation that Dr.Calvo had assigned but an urgent personal matter had come up so I was not able to do either. I am very happy with the final quality of work which I have produced all up it was around 16,000-17,000 of quality writing. In the next few days I will be putting the final touches on my presentation in addition to studying for my final econometrics exam which happens to be the day after. As a result my final post will be on Tuesday evening of November 6th after my exam and presentaiton has been completed.

An overview of the contributions and achievements that my treatise has made are as follows:

The research problem undertaken was to explore the complementarities that the IT capital components of software and hardware capital exhibit with each other and other capital investments, as well as investigate their impact on productivity in an intensive IT using economy. This area has not yet been fully been explored by existing academia and will therefore broaden the knowledge and understating into this area for researchers, economists and businesses.
This treatise whilst a research treatise has provided some notable contributions which are:

1. One of the first papers to empirically model and prove that software capital and hardware capital are distinct capital components in production i.e. that hardware and software cannot be aggregated with each other nor with non-IT capital.
2. One of the first papers to apply the economic theory of complementarity and substitutability through the Allen Partial Elasticity Substitution (AES) measure to Australian data in IT productivity analysis.
3. The first paper to employ the AES framework using disaggregated IT capital i.e. software capital and hardware capital in IT productivity analysis
4. This treatise is also one of the first papers to provide evidence for the Australian economy not leveraging the entire benefits to be gained for IT investments and therefore in some respect indicate that Australia is an inefficient user of IT especially for software capital.

Almost finished...

Since my last post I have met three times with Dr. Poon to discuss the progress of the continued write up of my treatise. As Dr. Poon is leaving on Thursday the 25th of October, I have been working very hard to have my treatise complete by then so I can receive as much feedback and advice on my work to ensure it is of the highest quality. I have all my chapters reviewed bar the chapters covering the data collection methodology, discussion of the results and conclusion. However, in my last two meetings with Dr.Poon this week which was on Monday and Friday we did discuss in depths on the approach I wanted to take on my discussion results. For an overview of the results found please view the post on the 8th of October. I have come up with a very interesting argument and perspective on my results ,which I won't spoil just yet :). I must admit that it was this section of the thesis I enjoyed writing the most because not only did it allow me to display what I had learned through my research of the topics but also fuse in knowledge obtained from both my engineering degree and commerce degree.

I have now completed all sections of thesis bar the data gathering chapter since it was the easiest to complete and have left it till the very end. I should be able to complete the write up of the data construction within the next hour or so. On Monday I will then incorporate any feedback received form Dr. Poon which I have not yet incorporated and fix up minor details such as the aesthetics of the appearance, table of context, abstract etc. I will then meet with Dr. Poon on Tuesday who will overview my thesis in its entirety and double check that I have not excluded any crucial sections. Hopefully, I will only have to make very minimal changes if any. I plan to have the feedback finalised and incorporate into my thesis by Friday so on Saturday I can bind my thesis and concentrate on my presentation.

In my next post I will provide the an outline of the final structure of my thesis including a list of all th references I have used for any interested readers reference.

Meeting Update October 9 2007

As mentioned in my earlier post on Monday I held a meeting with Dr.Poon were a presented to him an outline of my proposed final treatise for discussion and critical review. Overall Dr.Poon was happy with the way I proposed to segment the treatise including the points which I plan to my focus on. Dr Poon however did provide me with very useful criticism which will assist in making the overall treatise structure more sound in addition to making it flow more logically.

The first two chapters of my partial draft will be partially reworked to reflect this new strucutre. A brief summary of the contents follows.

Chapter 1

The first chapter will focus on providing a brief overview of the productivity paradox and the evolution of thechnology over the past 20 years. It will then lead into the argument put forth by Paul Romer (1995) about the evolving nature and definition of IT especially the reconceptualisation of IT into seperate components. This will then be linked to current state and statsitics of IT productivity in Australia. From these figures and statistics the exploratory nature of the treatise will be set providing the reasons for wanting to explore the nature and realtionship of IT capital with other productivity capital inputs in Australia.

Chapter 2

The literature that was used in the partial draft will be able to be re-used however the way in which the literature review is segmented has changed. The first section will deal with definifition of the productivity paradox. Each subsection will deal with different conceptualisations of the paradox that have been found in literature such as measurement error, ommitted vairables, capturing intagiable items etc. The next setion will deal with how the definition of IT has been reconceptualised e.g. such as IT as GPT, IT as ane enabler, Paul Romers argument etc. This will then be proceeded with a discussion of the results of previous work which have examined the substitutability and complementarity of IT capital with other produciton inputs. The final section will provide the current state of research on my thesis topic: "Exploring the IT complementarities among capital inputs in productivity analysis" and illustrate any short comings and which particular short coming I will be investigating.

As mentioned in my last post I was going to provide the literature I have found regarding IT as GPT and the disembodiment and emobodiment of technology. One suck important paper is the following:

• R. Boucekkine, D. De La Croix, and O. Licandrom, "Vintage Capital."
• R. G. Lipsey, C. Bekar, and K. Carlaw, "What Requires Explanation?," in General Purpose Technologies and Economic Growth, E. Helpman, Ed. Massachusetts: MIT Press, 1998.
• R. G. Lipsey, C. Bekar, and K. Carlaw, "The consequences of Changes in GPTs," in General Purpose Technologies and Economic Growth, E. Helpman, Ed. Massachusetts: The MIT Press, 1998.
  
  

I have informed Dr.Poon that I will be providing him the first five chapters of my thesis complete or close to completion by our meeting next Monday afternoon. I plan to have the first three chapters complete and the chapters 4 and 5 close to completion as the latter two are simple reporting results and data description which do not that much time invested to produce a quality end result.

Update on Progress for the Past 2 weeks

For the past two weeks I have finalised all my results and been working on my final treatise copy. The results that I posted in my last post will be used in my final treatise. The justification for using the non-logged versions of KS/K, KH/K and KS/K1 can be found in the following paper:

• Lehr, B and Lichtenberg, F., "Information Technology and its impact on productivity: firm level evidence form government and private data sources, 1977-1993", The Canadian Journal of Economics, (1999)

In my last meeting with Dr.Poon we had started discussing on which angle to take in writing up the final copy of the treatise. He suggested that I take a highly exploratory tone in writing up my argument about the results I have found. To recap these results are:

• IT capital can't be aggreagted into Ordinary Capital K (K)


• Software Capital (SK) and Hardware Capital (HK) can't be aggregated into IT capital (K1)


• SK and HK don't have any short term intermediate impact i.e. it takes times for SK and HK to adjust for the effects of these to be felt


• HK and SK are complementary with each other


• SK and L are substitutes with each other


• HK and L are substitutes with each other

For my meeting this afternoon I have created an outline of all the sections including what will be written and what papers will be used for each chapter. Dr. Poon will then review the key points and papers which once approved I can write up the section in its entirety. The sections are as follows:

• Chapter 1: Introduction and Motivation


• Chapter 2: Literature Reivew


• Chapter 3: Methodology and Hypothesis


• Chapter 4: Data Construction


• Chpater 5: Results


• Chapter 6: Analysis and Interpretation


• Chpater 7: Conclusion

After my meeting today I will recount about the derlivarables on the coming week and mention any changes to the proposed structure. I have also been researching further items on two more concepts which are the emobdiment and disembodiment of IT and the General Purpose Technologuy (GPT) nature of IT. Both these concepts will be used in my motivation as well as be used in my analysis and discussion of results. I will provide the references to the resoue which I have used and found in my next post.

Meeting update Wednesday September 26

I held a meeting today with Dr.Poon to discuss my progress to date. The majority of the meeting was centered around how we were going to obtain the p-values for the implied values in the aggregation tests that I mentioned in my earlier post. Dr. Poon informed me that Shazam (another statistical package) has the ability to calculate the p-values for the implied delta and gamma values obtained. We have decided to use the Shazam software for the portion of this thesis. I have been provided with a copy of Shazam and have already installed the software, written the the code to perform the tests and obtained the results.

The code that I wrote to perform the aggregation tests is quite simple and is provided below.

*Read in the Data
SAMPLE 1 216
READ(AggregationData89_06.txt) Sector KH KS K1 K KSITP KSP KHP K0 L VA / SKIPLINES=1

*Transform Variables
GENR KSP = LOG(KSP)
GENR KHP = LOG(KHP)
GENR KSITP = LOG(KSITP)

GENR VA=LOG(VA)
GENR L=LOG(L)
GENR K=LOG(K)
GENR K1=LOG(K1)
GENR K0=LOG(K0)
GENR KS=LOG(KS)
GENR KH=LOG(KH)

*Create time effect dummies
MATRIX TDUM=SEAS(216,18)
DO #=1,18
GENR C#=TDUM:#
ENDO

* Run OLS for first aggregation test
OLS VA L K KSP KHP Sector C2-C18

*Perform the t-tests for the implied values
TEST
TEST K/KSP
END

TEST
TEST K/KHP
END

* Run OLS for the second aggregation test
OLS VA L K0 KSITP K1 Sector C2-C18

*Perform t-test for the implied value
TEST
TEST K1/KSITP
END

STOP

As is evident in the code above I had run the OLS by also using the natural log of the mix functions KSP (KS/K), KHP (KH/K) and KSITP (KS/K1). However, this provided an unexpected result in the first aggregation test with the p-value of the mix function KSP to be around 0.70 which means that since we cannot reject the null hypothesis from KSP being statistically different from zero this implies that KS (Software capital) can be aggregated into ordinary capital. I have passed on these results to Dr. Poon who has asked me to re-run the tests without taking the natural logs of these mix functions. The results now show that Software Capital (KS) and Hardware Capital (KH) cannot be aggregated with non-IT capital since the p-values of the mix functions KSP, KHP are less than 0.05. Likewise the second aggregation test results show that KS and KH cannot be aggregated into a single IT capital measure (K1) since the mix function KSITP has a p-value less than 0.01. The full results are posted below.

Test for aggregation of KS into K

TEST VALUE = 0.25394E-01 STD. ERROR OF TEST VALUE 0.12112E-01

T STATISTIC = 2.0966614 WITH 193 D.F. P-VALUE= 0.03733

F STATISTIC = 4.3959891 WITH 1 AND 193 D.F. P-VALUE= 0.03733

WALD CHI-SQUARE STATISTIC = 4.3959891 WITH 1 D.F. P-VALUE= 0.03602

Test for aggregation of KH into K

TEST VALUE = 0.78809E-02 STD. ERROR OF TEST VALUE 0.33973E-02

T STATISTIC = 2.3197322 WITH 193 D.F. P-VALUE= 0.02140

F STATISTIC = 5.3811575 WITH 1 AND 193 D.F. P-VALUE= 0.02140

WALD CHI-SQUARE STATISTIC = 5.3811575 WITH 1 D.F. P-VALUE= 0.02036

Test for aggregation of KS into K1

TEST VALUE = -0.18831 STD. ERROR OF TEST VALUE 0.23904E-01

T STATISTIC = -7.8779472 WITH 193 D.F. P-VALUE= 0.00000

F STATISTIC = 62.062051 WITH 1 AND 193 D.F. P-VALUE= 0.00000

WALD CHI-SQUARE STATISTIC = 62.062051 WITH 1 D.F. P-VALUE= 0.00000

I have passed on these results to Dr.Poon and am awaiting confirmation that I can report these results in my final report.