Showing papers by "Government of Canada published in 2007"

Are Firms that Received R&D Subsidies More Innovative?

Abstract: This paper looks at the effectiveness of R&D grants for Canadian plants that already benefit from R&D tax credits. Using a non-parametric matching estimator and data from the 2005 Survey of Innovation from Statistics Canada, we find that firms that benefited from both policy measures introduced more new products than their counterparts that only benefited from R&D tax incentives. They also made more world-first product innovations and were more successful in commercializing their innovations. The paper gives also a detailed step-by-step explanation of how to apply the non-parametric matching technique.

Isolation of viral haemorrhagic septicaemia virus from mummichog, stickleback, striped bass and brown trout in eastern Canada.

Abstract: Viral haemorrhagic septicaemia virus (VHSV) was isolated from mortalities occurring in populations of mummichog, Fundulus heteroclitus, stickleback, Gasterosteus aculeatus aculeatus, brown trout, Salmo trutta, and striped bass, Morone saxatilis, in New Brunswick and Nova Scotia, Canada. The isolated viral strains produced a cytopathic effect on the epithelioma papillosum cyprini cell line. Serum neutralization indicated the virus was VHSV and sequencing identified the rhabdovirus isolates as the North American strain of VHSV. Phylogenetic analysis indicated that the isolates are closely related and form a distinguishable subgroup of North American type VHSV. To our knowledge, this is the first report of VHSV in mummichog and striped bass.

First detection and confirmation of spring viraemia of carp virus in common carp, Cyprinus carpio L., from Hamilton Harbour, Lake Ontario, Canada

Abstract: In June 2006, 150 wild common carp were sampled from Hamilton Harbour, Lake Ontario, Canada. Tissue pools consisting of kidney, spleen and encephalon were screened for viruses as a condition facilitating the export of live carp to France. Cytopathic effect (CPE), indicative of a viral infection, became evident after 8 days of incubation at 15 degrees C. Eighteen of 30 tissue pools (five fish per pool) eventually demonstrated viral CPE. The viral pathogen was initially cultured and isolated on the epithelioma papulosum cyprini cell line and subsequently shown to produce CPE in the fathead minnow and bluegill fin cell lines. Electron microscopy demonstrated the virus to be a rhabdovirus. Reverse transcriptase-polymerase chain reaction assay and nucleotide sequence analysis identified the isolate as spring viraemia of carp virus (SVCV). Phylogenetic analysis of a 533 bp region of the glycoprotein gene grouped the Canadian isolate in SVCV genogroup Ia together with isolates from Asia and the USA. Sequence comparisons revealed the Hamilton Harbour, Lake Ontario isolate to be most similar to an isolate obtained from common carp in the Calumet Sag Channel in Illinois in 2003 (98.9% nucleotide identity). This is the first report of the detection of SVCV in Canada.

Hatching success of walleye embryos in relation to maternal and ova characteristics

Abstract: – Understanding how maternal and ova traits influence offspring quality is a key issue in both ecological research and fish culture. We examined the survival and size at hatch of walleye embryos in relation to a suite of maternal and ova traits in laboratory incubation trials involving two native walleye populations. Ova were analysed for size, lipid content, fatty acid composition, soluble protein content and size composition, and mineral (Ca, Co, Cu, Fe, Mg, Mn and Zn) content. Embryonic survival (egg hatching success) varied most consistently with respect to spawning date and maternal age. Embryonic survival increased with maternal age, but other indices of maternal health, such as condition (residual mass at length) or somatic lipid content, did not account for significant amounts of variation. Indices of ova total lipid content, fatty acid composition and mineral composition explained significant variation in embryonic survival not accounted for by maternal age and spawning date, whereas indices of protein content and composition generally explained less variance. Both larval mass and length at hatch were primarily determined by ovum size, but length at hatch was also related to some aspects of ova fatty acid and mineral composition.

Multifactor Productivity in Canada: An Evaluation of Alternative Methods of Estimating Capital Services

Abstract: This paper examines the effects of alternative specifications of the user costs of capital on the estimated price and volume indices of capital services. It asks how sensitive the results are to the use of exogenous versus endogenous rates of return, to alternate ways of including capital gains, and to whether corrections are made for tax rates. The paper also examines the effect of the various user cost formulae on the measured multifactor productivity growth.

Death and international travel--the Canadian experience: 1996 to 2004.

Abstract: Background. Death during international travel concerns several levels of the travel industry. In addition to the immediate effects for the traveler, their family and friends, the nature of travel-related mortality has important implications for pretravel health advisors and providers of medical care services. Methods. The Consular Affairs Bureau, Foreign Affairs Canada provides information and assistance to Canadian civilians abroad. Beginning in 1995, the Consular Management and Operations System tracked Canadian deaths abroad notifications. The annual data for 1996 to 2004 was extracted for sex, age, and cause of death by location for all reports received. Results. There were 2,410 reported deaths in Canadians abroad; reported sex was 32% female and 68% male, average age of 61.7 and 60.4 years, respectively. Recorded causes of death: natural (1,762), accidental (450), suicide (92), and murder (106). Country of death reflected the pattern of Canadian international travel for recreation, business, and ancestral linkages. Average age of natural death (66 years) distinguished it from all other causes of death: accidental (45), suicide (41), and murder (43). Conclusion. Natural causes and suicide deaths may be anticipated or planned to occur abroad. The risk of death may be mitigated through personal knowledge and medical assessment and prevention strategies. Deaths due to vaccine-preventable diseases, exotic and infectious diseases were rare in this population. Consular services may be able to provide various types of support. Local laws and customs, as well as international regulations in health and quarantine govern other responsibilities such as funeral services and repatriation of the deceased to Canada. Language: en

Transforming service to Canadians: the Service Canada model

Abstract: Over the past decade, the pursuit of citizen-centred service, combined with rapid advances in information and communication technologies, has stimulated innovative approaches to the organizational design of governments' service delivery systems. Service delivery organizations in Canada and elsewhere have taken a variety of organizational forms, thereby providing a range of models for adoption or adaptation. Service Canada offers Canadians a new model for the delivery of government services. It is a one-stop, multi-channel and multi-jurisdictional initiative that is dedicated to delivering seamless citizen-centred service. It brings together a wide range of government programmes and services from across federal departments and other levels of government to provide citizens with integrated, easy-to-access, personalized service. This article assesses the possibilities that the Service Canada model presents for service transformation through integrated service delivery (ISD) and discusses political, structura...

Impact of foods nutritionally enhanced through biotechnology in alleviating malnutrition in developing countries.

Abstract: According to United Nations (UN) projections, the world's population will grow from 6.1 billion in 2000 to 8 billion in 2025 and 9.4 billion in 2050. Most (93%) of the increase will take place in developing countries. The rapid population growth in developing countries creates major challenges for governments regarding food and nutrition security. According to current World Health Organization estimates, more than 3 billion people worldwide, especially in developing countries, are malnourished in essential nutrients. Malnutrition imposes severe costs on a country's population due to impaired physical and cognitive abilities and reduced ability to work. Little progress has been made in improving malnutrition over the past few decades. The Food and Agriculture Organization of the UN would like to see more nutrient-rich foods introduced into these countries, because supplements are expensive and difficult to distribute widely. Biofortification of staple crops through modern biotechnology can potentially help in alleviating malnutrition in developing countries. Several genetically modified crops, including rice, potatoes, oilseeds, and cassava, with elevated levels of essential nutrients (such as vitamin A, iron, zinc, protein and essential amino acids, and essential fatty acids); reduced levels of antinutritional factors (such as cyanogens, phytates, and glycoalkaloid); and increased levels of factors that influence bioavailability and utilization of essential nutrients (such as cysteine residues) are advancing through field trial stage and regulatory processes towards commercialization. The ready availability and consumption of the biofortified crops would have a significant impact in reducing malnutrition and the risk of chronic disease in developing countries.

User Guide for Statistics Canada's Annual Multifactor Productivity Program

Abstract: The Canadian Productivity Accounts (CPA) of Statistics Canada maintain two multifactor productivity (MFP) programs. The Major Sector Multifactor Productivity Program develops the indexes of MFP for the total business sector and major industry groups in the business sector. The Industry Multifactor Productivity Program or the Industry KLEMS Productivity Program develops the industry productivity database that includes MFP indexes, output, capital (K), labour (L), energy (E), materials (M) and services (S) inputs for the individual industries of the business sector at various levels of industry aggregation. This paper describes the methodologies and data sources that are used to construct the major sector MFP indexes and the industry productivity database (or the KLEMS database). More specifically, this paper is meant to: provide a background of the major sector MFP program and the industry KLEMS productivity program; present the methodology for measuring MFP; describe the data sources and data available from the MFP programs; present a quality rating of the industry KLEMS productivity data; and describe the research agenda related to the MFP program.

Estimating the Impact of Seat Belt Use on Traffic Fatalities: Empirical Evidence from Canada

Abstract: This study contributes to the literature by using provincial data in Canada between 1980 and 1996 to analyze the effect of seat belt use on traffic fatalities. Empirical estimates from first stage instrumental-variables regressions suggest that the enactment of mandatory seat belt laws is significantly associated with an increase in average seat belt use, while corresponding estimates from second stage regressions imply that a 1 percent increase in average seat belt use is correlated with a 0.17–0.21 percent drop in vehicle-occupant fatalities. These results suggest that roughly 17 percent of the observed decline in vehicle-occupant fatalities is attributable to the enactment of mandatory seat belt legislation and the corresponding increase in seat belt use.

Tax incentives and fertility in Canada: quantum vs tempo effects

Abstract: . Using inter-jurisdictional differences in the implementation of the Family Allowance Program in Canada in the mid-1970s, this paper first shows that Quebec families with two or more children prior to being exposed to the program responded quite strongly to the added incentives in the short run relative to women in other Canadian provinces. Tracking down the cohorts across Censuses, we find that the same group of Quebec families subsequently showed a decrease in fertility relative to the rest of Canada, leaving ultimate family size unaffected. These results are consistent with the program having generated only a timing effect. Utilisant les differences entre juridictions dans la mise en œuvre du programme d'allocations familiales au Canada au milieu des annees 70, ce memoire montre d'abord que les familles quebecoises qui avaient deux enfants ou plus avant d'etre exposees au programme ont repondu tres fortement aux incitations additionnelles a court terme en comparaison avec ce qui s'est passe dans les autres provinces canadiennes. En suivant les cohortes a travers les recensements, on montre que ce meme groupe de familles du Quebec a, par la suite, subi un declin de fecondite par rapport au reste du Canada, ce qui a eu pour effet de laisser la taille de la famille ultimement non affectee d'une maniere relative. Ces resultats sont coherents avec la conclusion que le programme a seulement eu un effet sur le profil temporel de la fecondite.

Occupational performance modification and personal change among clients receiving rehabilitation services for rheumatoid arthritis.

Abstract: Background: A client's personal process of change is recognised as an important element in the rehabilitation process that may affect the acceptance and outcome of recommended occupational therapy self-management interventions. Recent research has examined the transformative process of changing underlying values, beliefs, feelings and knowledge, collectively known as meaning perspectives, in clients receiving rehabilitation for various chronic conditions. Aim/methods: This article presents the findings of a Grounded Theory Qualitative retrospective study of 10 adults diagnosed with rheumatoid arthritis receiving occupational therapy to modify their daily living environment and activities to maximise the quality of life and occupational performance. They were interviewed twice in a semidirected manner. Results: Two personal change processes were identified for two different courses of the illness: progressive adaptation during a course of gradual steady development of symptoms without remission, and complex adaptation that led to transformation during a course of acute development of symptoms with periods of remission. Conclusion: Implications for more effective and efficient occupational therapy interventions are suggested.

The dual role of indicators in optimal fisheries management strategies

Abstract: Rice, J. C., and Rivard, D. 2007. The dual role of indicators in optimal fisheries management strategies. - ICES Journal of Marine Science, 64: 775-778.Indicators are used in two different ways in the assessment and advisory cycle. One is to audit performance of the management plan relative to achieving the objectives for the fishery. The second is to trigger control rules to manage the subsequent harvest. Traditionally, the assessment and management community has used spawning-stock biomass and fishing mortality for these functions, and as management strategies are being developed, generally continues to test the same indicators in both the audit and control functions. There is no reason to use the same indicators in both functions, and management of a few specialized commercial fisheries has recognized this, using different indicators in different roles for many years. That different indicators may be optimal for both roles presents a richer range of opportunities for exploring robust management strategies, and will be essential as ecosystem considerations and integrated management tools are included in assessment and management.

Long-Term Productivity Growth in Canada and the United States

Abstract: This paper compares long-run growth in labour productivity in Canada and the United States from 1961 to 2006. Over the entire period labour productivity in both countries grew at about the same rate. But Canadian growth exceeded that of the United States up to the early 1980s. Since then, U.S. labour productivity growth has exceeded Canadian growth. The gap has widened, particularly after 2000. The paper also decomposes labour productivity growth into three components - that arising from increases in capital intensity, from increases in the skill level of the labour force (due to changes in labour composition) and a residual (multifactor productivity growth). The first two components (both arising from investment, one in machinery and structures, the other in training) were more important in Canada. The third (the residual often referred to as technological progress) was larger in the United States.

Canada's Pioneering Experience with a Flexible Exchange Rate in the 1950s:(Hard) Lessons Learned for Monetary Policy in a Small Open Economy

Abstract: This paper revisits Canada's pioneering experience with floating exchange rate over the period 1950-1962. It examines whether the floating rate was the best option for Canada in the 1950s by developing and estimating a New Keynesian small open economy model of the Canadian economy. The model is then used to conduct a counterfactual analysis of the impact of different monetary policies and exchange rate regimes. The main finding indicates that the flexible exchange rate helped reduce the volatility of key macro-economic variables. The Canadian monetary authorities, however, clearly did not understand all of the implications of conducting monetary policy under a flexible exchange rate and a high degree of capital mobility. The paper confirms that monetary policy was more volatile in the post-1957 period and Canada's macroeconomic performance suffered as a result.

Eleven Years of GATS Case Law: What Have We Learned?

Abstract: The General Agreement on Trade in Services (GATS) negotiators faced a significant challenge when having to craft a comprehensive set of disciplines governing multilateral trade in services, and the result is somewhat complex. Some obligations, in particular the most favoured-nation treatment (MFN) obligation, apply across the board. Others, like the market access and national treatment obligations, apply only in respect of service sectors of a Member's choosing. There is overlap between the market access and national treatment obligations, and the relationship between these two disciplines and those on domestic regulation is not clearly established. Additional obligations have been adhered to on a voluntary basis, in particular in the areas of telecommunications and financial services. In general, the interpretation and understanding of Members' Schedules of Specific Commitments proves to be a laborious exercise. This provides fertile ground for difficult and often sensitive interpretive issues to arise. Although Members have thus far not made extensive use of dispute settlement procedures to resolve them, existing World Trade Organization (WTO) decisions already show the reach of GATS disciplines and their potential impact on Members' policies and regulations. The Gambling case has, in particular, sparked a debate as to what should be the right balance between trade constraints and the autonomy of Members' service regulators. This article reviews the GATS case law with a view to offering a critical assessment of the main systemic issues that have been addressed by WTO adjudicatory bodies. These issues are, respectively, the scope of application of the GATS, the interpretation of specific commitments in Members' Schedules, market access, non-discriminatory treatment, and general exceptions. , Oxford University Press.

IRAQ: Preventing a New Generation of Conflict

Abstract: Looking Back: State Fragility and a Generation of Conflict - the Editors. Iraq in Turmoil. State Collapse and the Rise of Identity Politics - T. Dodge. Iraq's Identity Crisis - P. Marr. Three Wars Later...Iraqi Living Conditions - J. Pedersen. Islamism, Nationalism, and Sectarianism - A.S. Sidahmed. Sunni Factions and the "Political Process" - R. Meijer. Shi'a Militias in Iraqi Politics - J. Cole. Kirkuk as a Peacebuilding Test Case - J.R. Hiltermann. Toward a Stable Peace. Forging an Inclusive and Enduring Social Contract - N. Haysom. Making Federalism Work - D. Cameron. Liberal Consociation and Conflict Management J. McGarry. Federalizing Natural Resources - B. O'Leary. US Policy and Diplomacy - J. Dobbins. Iraq's Arab Neighbors - J.B. Alterman. Securing Iraq: The Mismatch of Demand and Supply - N Bensahel. The Protection of Civilians - P. Gassmann. Dilemmas of Donor Assistance - M. Bell. Strategic Coordination of International Engagement - B.D. Jones. Conclusion. Looking Ahead: Preventing a New Generation of Conflict - the Editors.

Investment and Long-term Productivity Growth in the Canadian Business Sector, 1961 to 2002

Abstract: This paper employs the databases that are used to construct Statistics Canada’s Productivity Accounts to examine the sources of growth in the Canadian economy and the history of productivity growth in Canada over the period 1961 to 2002. It makes use of a new time series using the North American Industry Classification System. The growth accounting system provides the framework for the analysis. This framework provides estimates of the relative importance of labour inputs, investments in capital, and productivity growth. The data that are required to address this issue also allow changes in the composition of capital and labour inputs to be investigated. In addition, the underlying factors that determine labour productivity (multifactor productivity, capital deepening, and increases in skill level) are outlined. Since the database is constructed at the industry level, all these relationships can be pursued both at the level of the total economy and for individual industries.

The Measurement of Success of Activity-Based Costing and Its Determinants: A Study within Canadian Federal Government Organizations*/L'évaluation Du Succès De La Comptabilité Par Activités Et Ses Déterminants: Étude D'Organismes Du Gouvernement Fédéral Du Canada

Abstract: This research first measures the success of activity-based costing (ABC) implementation within Canadian federal government organizations along five constructs, which are the use and frequency of use of the ABC information, decision actions taken, financial improvements, evaluation by management as to overall success, and a composite measure of the four constructs. Second, it identifies the determinants of ABC success. The success determinants used in this study are organizational culture, involvement of a champion, change process, commitment, controls, and continuous education. Measures of ABC success and determinants were obtained using a survey of managers who have participated in ABC implementation in Canadian federal government organizations. The study found that the benefits derived from ABC implementation within Canadian public sector organizations do not measure up to the efforts invested, although respondents consider that some financial improvements have resulted from the implementations. Controls and culture proved to be the two variables that significantly relate to ABC success. The results could have implications for policymaking organizations such as the Treasury Board Secretariat of Canada and the Office of the Comptroller General (OCG). The latter should question the benefits of investments made in management accounting best practices in the federal government. The OCG could also direct departments and agencies to the right environment (success determinants) to be put in place in order to ensure the success of ABC initiatives. RESUME Les auteurs evaluent le succes de la mise en œuvre de la comptabilite par activites (CPA) au sein d'organismes du gouvernement federal du Canada selon cinq parametres, soit l'utilisation et la frequence d'utilisation de l'information produite par la CPA, les mesures decisionnelles prises, les ameliorations financieres, l'evaluation du succes global par la direction et une mesure composite regroupant ces quatre parametres. Ils definissent ensuite les determinants du succes de la CPA. Les determinants utilises dans la presente etude sont la culture organisationnelle, l'intervention d'un defenseur, le processus de changement, l'engagement, les controles et la formation continue. Les auteurs obtiennent les criteres d'evaluation et les determinants du succes de la CPA en procedant a un sondage aupres de cadres ayant participe a la mise en œuvre de la CPA dans des organismes du gouvernement federal du Canada. Ils constatent que les avantages decoulant de cet exercice au sein des organismes du secteur public canadien ne sont pas a la hauteur des efforts investis, meme si les repondants estiment en avoir tire certaines ameliorations financieres. Il semble que les variables des controles et de la culture soient celles qui se rattachent de facon significative au succes de la CPA. Les resultats de l'etude pourraient avoir des consequences pour les organismes responsables de l'elaboration des politiques comme le Secretariat du Conseil du Tresor du Canada et le Bureau du controleur general (BCG). Ce dernier devrait s'interroger sur ce que rapportent les sommes investies par le gouvernement federal dans les pratiques de comptabilite de management les meilleures. Le BCG pourrait egalement orienter les ministeres et les organismes gouvernementaux vers l'environnement (ou les determinants du succes) qu'il convient de mettre en place pour assurer la reussite des projets de CPA.

Tariff Reduction and Employment in Canadian Manufacturing

Abstract: This paper uses firm-level tax data to investigate whether the link between tariff changes and manufacturing employment differed across firms with various productivity and leverage characteristics over the period 1988-94. The results suggest that the effect of domestic tariff reductions on employment was typically small, but that losses were significantly larger for less productive firms. For instance, firms with average productivity in 1988 responded to domestic tariff changes by cutting employment by 11.3% over the period 1988-94, while lower-productivity firms typically shed 20.8% of their workforce over the same period. This paper also indicates that firms with unhealthy balance sheets - those with relatively too much equity or too much leverage - downsized more in the face of declining domestic tariffs, suggesting that financial constraints became more binding when tariff cuts were implemented. These results suggest that firms with high productivity and better financial health were better positioned to face the challenge of trade liberalization.

Rediscounting Under Aggregate Risk With Moral Hazard

Abstract: In a 1999 paper, Freeman proposes a model in which discount window lending and open market operations have different outcomes - an important development because in most of the literature the results of these policy tools are indistinguishable. Freeman's conclusion that the central bank should absorb losses related to default to provide risk-sharing goes against the concern that central banks should limit their exposure to credit risk. We extend Freeman's model by introducing moral hazard. With moral hazard, the central bank should avoid absorbing losses, contrary to Freeman's argument. However, we show that the outcomes of discount window lending and open market operations can still be distinguished in this new framework. The optimal policy would be for the central bank to make a restricted number of creditors compete for funds. By restricting the number of agents, the central bank can limit the moral hazard problem. And by making agents compete with each other, the central bank can exploit market information that reveals the state of the economy.

Domestic and Foreign Influences on Canadian Prices

Abstract: The paper examines the pricing behaviour of 81 Canadian manufacturing industries from 1974 to 1996. It explores the circumstances in which Canadian prices respond to foreign (U.S.) influences, as opposed to domestic factors (i.e., labour, energy costs, and productivity growth). It finds that both forces exert important influences on Canadian prices. The responses differ across industries. Prices of domestically produced goods are more sensitive to their U.S. counterparts if the industry faces higher competitive pressure, either within the domestic market or from import competition, and if products are less differentiated.

International Trade as Determined by Income and Income Distribution

Abstract: In standard trade theory, consumption is normally assumed to be homothetic. Consequently, income and its distribution have no role in determining international trade patterns. This paper examines the assumption and its implications. The assumption of homothetic preferences is rejected at the1%level. It further demonstrates that the Heckscher–Ohlin–Vanek (HOV) model modified by allowing for non-homothetic taste improves the performance of HOV prediction and explains some of the trade puzzles and paradoxes.

Science and technology foresight: a provocative tool for contending with future challenges in food safety and public veterinary medicine.

Abstract: Summary The author describes how foresight methods can provide a provocative approach to some of the key challenges faced by the world of animal health and public veterinary practices while supporting the safety and security of the food system and public health in general. Being provocative is important because the future may be very unfamiliar and demands an approach of critical thinking, which can best be activated by having to consider the prospective reality of one or more substantially different policy operational environments. The factors that are shaping our future may also be quite disruptive (for example from 1989 to 1994 when the Cold War abruptly ended, the Soviet Union dissolved and the internet was born). Consequently it is essential that any forward preparedness efforts explore a range of plausible options and not immediately discount those that may in today’s terms appear unlikely. The author reviews the methods through to the point where scenario parameters are defined, and then switches to observations about how the process can influence and provoke policy formulation. The results of the foresight and scenarios employment are described by Willis in another paper in this volume.

Fiscal Planning Under Uncertainty – The Implications of Economic and Fiscal Uncertainty for Budget Forecasts

Abstract: This paper presents an analysis of the uncertainty in projections of the federal budget balance arising due to uncertainty in economic, and government revenue and spending projections. Budget projections frequently differ from actual results due to an unavoidable level of uncertainty contained in the underlying economic projections as well as a relationship between economic inputs and fiscal projections that is often volatile. Using a stochastic simulation model that includes a detailed specification for the economy and federal government finances and random variables to proxy uncertainty in these variables, a probability distribution for the budget balance is generated and the probability of achieving a surplus is estimated given various assumptions for fiscal prudence.

Looking Back: State Fragility and a Generation of Conflict

Abstract: Having endured a generation of devastating conflict under Saddam Hussein and in the chaos following his overthrow in 2003, Iraq may now be gearing up for another generation of violence. The potential consequences for Iraq, the region, and the world are incalculable. What drives this conflict? Where do the sources of this ongoing instability lie? What options do Iraqis have to bring stability to their country? What levers does the international community have to help them? These are the questions this volume seeks to address.

Internally-Corrected Conditional Density Estimation

Abstract: We propose a new kernel estimator of conditional density and derive its asymptotic bias and variance. This new, non-negative estimator, is obtained by 'internalizing' the random denominator of the well known local constant smoother of Rosenblatt (1969). A limited Monte Carlo experiment demonstrates that the new estimator performs well in finite sample simulations in comparison to other kernel smoothers. We also illustrate the applicability of the new estimator using S&P 500 options prices to study implied volatility.