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In recent years, a large number of empirical articles on structural decomposition analysis, which aims at disentangling an aggregate change in a variable into its r factors, has been published in this journal. Commonly used methods are the average of the two polar decompositions and the average of all r! elementary decompositions (Dietzenbacher and Los, 1998, D&L). We propose to use instead the 'ideal' Montgomery decomposition, which means that it satisfies the requirement of factor reversal imposed in index number theory. We prefer it to the methods previously mentioned. The average of the two polar decompositions is not 'ideal', so that the outcome depends on the ordering of the factors. The average of all elementary decompositions is 'ideal', but requires the computation of an ever increasing number of decompositions when the number of factors increases. Application to the example of D&L (four factors) shows that the three methods yield results that are close to each other.Additive decomposition, index number theory, structural decomposition analysis,

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Structural and index decomposition analyses allow identifying the main drivers of observed changes over time of energy and environmental impacts. These decomposition analyses have become very popular in recent decades and, many alternative methods to implement them have become available. Several of the most popular methods have been developed earlier in index number theory, a context in which each particular method is defined by adhering to a set of properties. The goal of the present paper is to review the main results of index number theory and discuss its connection to decomposition analyses. By doing so, we can present a decision tree that allows users to choose a decomposition method that meets desired properties. We report as hands-on example an empirical case study of the carbon footprint of the Netherlands in the period 2004-2005.

In this paper we analyse the provision of emergency assistance (food assistance, cash transfers, employment programmes, etc) to a country whose economy has been decimated since the start of the second intifada. We try to simulate the different potential effects brought about by these different policies and, in particular, to draw some policy implications concerning the Food-for-Work versus Cash-for-Work debate. To that end we have constructed a general equilibrium model of the Palestinian economy that we calibrate on the (pre-intifada) Social Accounting Matrix (SAM) of 1998. We give a so-called 'intifada-shock' to construct a counterfactual 'post-intifada' SAM which serves as basis for our policy simulations. We show that monetary aid from abroad is to be preferred to food aid from abroad. We argue that a labour-oriented approach (subsidizing the most labour-intensive sectors) is to be preferred to a welfare-oriented approach where the subsidized sectors produce those goods that dominate the consumption basket.Food-for-work, cash-for-work, computable general equilibrium model, Palestine,