Vol 2, No 2 (2014)
Model for Gross Operating Surplus and Mixed Income at Current Prices in 25 EU countries
Joel C. Nwaubani
Abstract
It is remarkable that high profits do not make an economy more resilient. Gross operating surplus is equal to profits, interest and rents before tax plus income of the self-employed. Ireland had the highest rate of the EU, while Germany had one of the lowest. This metric is influenced by the structure of an economy. In this study, we consider and estimate the most accurate association model for the gross operating surplus and mixed income at current prices in 25 EU countries for the period of 1998-2008 (shortly before the rise of economic crises in mid-July). The data used for the study were obtained from the Eurostat. The programme of the Categorical Data Analysis System (CDAS) is used in order to ascertain the results. The Analysis of Association (ANOAS) table is given in order to find the percentage of the data, which is covered by each model. We analyze and estimate the association model with the best fit. Finally, it is concluded that all six association models show an acceptable fit especially the third model (row effects), which gives the best fit by covering about 59% of the data.
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Keywords
Association models; Log-linear and log-nonlinear models; Gross operating surplus; Mixed income; Current prices; European Union
Publication information
Volume 2, Issue 2
Year of Publication: 2014
ISSN: 1857 - 8721
Publisher: EDNOTERA
How to cite
Nwaubani, J.C. (2014). Model for Gross Operating Surplus and Mixed Income at Current Prices in 25 EU countries. Journal of Applied Economics and Business, Vol 2, No. 2, 81-91.