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Full-Text Articles in Economics

Time Series, Unit Roots, And Cointegration: An Introduction, Lonnie K. Stevans Dec 2012

Time Series, Unit Roots, And Cointegration: An Introduction, Lonnie K. Stevans

Lonnie K. Stevans

The econometric literature on unit roots took off after the publication of the paper by Nelson and Plosser (1982) that argued that most macroeconomic series have unit roots and that this is important for the analysis of macroeconomic policy. Yule (1926) suggested that regressions based on trending time series data can be spurious. This problem of spurious correlation was further pursued by Granger and Newbold (1974) and this also led to the development of the concept of cointegration (lack of cointegration implies spurious regression). The pathbreaking paper by Granger (1981), first presented at a conference at the University of Florida …


Obtaining Critical Values For Test Of Markov Regime Switching, Douglas G. Steigerwald, Valerie Bostwick Oct 2012

Obtaining Critical Values For Test Of Markov Regime Switching, Douglas G. Steigerwald, Valerie Bostwick

Douglas G. Steigerwald

For Markov regime-switching models, testing for the possible presence of more than one regime requires the use of a non-standard test statistic. Carter and Steigerwald (forthcoming, Journal of Econometric Methods) derive in detail the analytic steps needed to implement the test ofMarkov regime-switching proposed by Cho and White (2007, Econometrica). We summarize the implementation steps and address the computational issues that arise. A new command to compute regime-switching critical values, rscv, is introduced and presented in the context of empirical research.


Public Policy Special Edition On Local Government, Michael Kortt, Bligh Grant, Brian Dollery Oct 2012

Public Policy Special Edition On Local Government, Michael Kortt, Bligh Grant, Brian Dollery

Bligh Grant

No abstract provided.


Regional And Local Tensions: The Role Of Shared Services, Michael Kortt, Brian Dollery, Bligh Grant Oct 2012

Regional And Local Tensions: The Role Of Shared Services, Michael Kortt, Brian Dollery, Bligh Grant

Bligh Grant

No abstract provided.


School Competition And Teacher Labor Markets: Evidence From Charter School Entry In North Carolina, Clement (Kirabo) Jackson Sep 2012

School Competition And Teacher Labor Markets: Evidence From Charter School Entry In North Carolina, Clement (Kirabo) Jackson

C. Kirabo Jackson

I analyze changes in teacher turnover, hiring, effectiveness, and salaries at traditional public schools after the opening of a nearby charter school. While I find small effects on turnover overall, difficult to staff schools (low-income, high-minority share) hired fewer new teachers and experienced small declines in teacher quality. I also find evidence of a demand side response where schools increased teacher compensation to better retain quality teachers. The results are robust across a variety of alternate specifications to account for non-random charter entry.


Ma Thesis - Migration And Development: The Development Impacts Of Short-Term Labour Migration Of Ni-Vanuatu Workers To New Zealand, Ronald R. Kumar Aug 2012

Ma Thesis - Migration And Development: The Development Impacts Of Short-Term Labour Migration Of Ni-Vanuatu Workers To New Zealand, Ronald R. Kumar

Dr Ronald R Kumar

The New Zealand’s Recognised Seasonal Employer (RSE) scheme is a New Zealand Government initiative that officially commenced in 2007. In this programme, five developing Pacific Island countries (PICs), namely Kiribati, Samoa, Solomon Islands, Tonga, and Vanuatu – referred to as the kick start countries, participated in short-term labour migration. The objectives of this Scheme are at least two fold. Firstly, the scheme was initiated to address seasonal labour shortage in New Zealand and second, to give employment opportunity to selected PICs. Since 2007, the RSE Scheme has undergone significant changes primarily addressing issues and concerns that emerged along the way. …


Estimating The Narcotic Effect Of Public Sector Impasse Procedures, Richard J. Butler, Ronald G. Ehrenberg Jul 2012

Estimating The Narcotic Effect Of Public Sector Impasse Procedures, Richard J. Butler, Ronald G. Ehrenberg

Ronald G. Ehrenberg

This paper first describes in a relatively nontechnical fashion several econometric techniques that the authors believe should be useful to industrial relations researchers. Those techniques are then applied to an analysis of whether public sector impasse procedures create a "narcotic effect," that is, a tendency for the bargaining parties, once they use the procedures, to become increasingly reliant on them in future negotiations. The authors reanalyze data from Thomas Kochan and Joan Baderschneider’s study of the impasse experience of police and firefighters under New York State’s Taylor Law during the 1968-76 period and find that while a narcotic effect did …


The Effect Of Treasury Auction Announcements On Interest Rates: 1990-1999, James J. Forest Jul 2012

The Effect Of Treasury Auction Announcements On Interest Rates: 1990-1999, James J. Forest

James J Forest

In this study we examine the secondary-market response of U.S. Treasury interest rates to both the release of pre-auction auction supply announcements and post-auction details from U.S. Treasury auctions during the period of the 1990s. Rate changes are found to differ significantly on auction days. Pre-auction announcements of auction volumes are shown to affect rates significantly, in contrast with the findings of Wachtel and Young (1987) with respect to deficit announcements. We find that surprises in the release of bid-to-cover ratios affect Treasury rates significantly, while the surprises in the volume of noncompetitive bids appears to have little affect on …


Human Capital Formation And Economic Development In Pakistan: An Empirical Analysis, Muhammad Irfan Chani, Mahboob Ul Hassan, Muhammad Shahid May 2012

Human Capital Formation And Economic Development In Pakistan: An Empirical Analysis, Muhammad Irfan Chani, Mahboob Ul Hassan, Muhammad Shahid

Muhammad Irfan Chani

This study investigates the casual relationship between economic development and formation of human capital in Pakistan. Based on endogenous growth theory, this study empirically tests the standard growth model consisting of gross domestic product (GDP) per capita as a dependent variable and human capital formation, investment in physical capital and labor force as independent variables. Autoregressive distributive lag (ARDL) bound testing approach to cointegration is used to check the long-run equilibrium relationship between the variables included in the model. For checking the causal relationship between economic development and human capital formation, pair-wise Granger causality test is used for time series …


Construction Of Pena’S Dp2-Based Ordinal Synthetic Indicator When Partial Indicators Are Rank Scores, Sudhanshu K. Mishra May 2012

Construction Of Pena’S Dp2-Based Ordinal Synthetic Indicator When Partial Indicators Are Rank Scores, Sudhanshu K. Mishra

Sudhanshu K Mishra

The present study devises a computational scheme (and develops a FORTRAN 77 computer program) that may be appropriate to construct Pena’s DP2 (ordinal) synthetic indicator (Z) from the partial indicators (X) all of which are ordinal (ranking scores). An attempt has also been made to empirically apply the method (and the computer program) to obtain an ordinal synthetic indicator from a given ordinal data set.


Some Socio Economic Determinants Of Fertility In Pakistan: An Empirical Analysis, Muhammad Irfan Chani, Muhammad Shahid, Mahboob Ul Hassan Apr 2012

Some Socio Economic Determinants Of Fertility In Pakistan: An Empirical Analysis, Muhammad Irfan Chani, Muhammad Shahid, Mahboob Ul Hassan

Muhammad Irfan Chani

This study aims to investigate the role that various socioeconomic factors like female education, urbanization and female labour force participation play in determining fertility of women in Pakistan. ARDL bound test approach to cointegration is used to analyze the long-run relationship of the variables by using the data for the period from 1980 to 2009. The empirical results show that there exists a long-run as well as short-run relationship between fertility and urbanization, female labour force participation and female education in Pakistan. The analysis indicates there is a negative relationship between all 3 determinants with fertility. Female education and urbanization …


An Analytical Framework Of Science Parks And Technology Districts With An Application To Singapore, Francis Koh, Winston T. H. Koh, Ted Feichin Tschang Mar 2012

An Analytical Framework Of Science Parks And Technology Districts With An Application To Singapore, Francis Koh, Winston T. H. Koh, Ted Feichin Tschang

Francis Koh

This paper analyzes the question: What does it take for science parks and technology districts to evolve and grow? We propose an analytical framework to examine the gestation, evolution, and sustainability of science parks and related but broader regional phenomena such as technology districts. The framework comprises three aspects of a science park's development: growth mechanisms, level of technological capabilities, and nature of its integration with national or global markets. The main growth mechanisms we identify are government-led infrastructure provision, agglomeration effects, and continual self-renewal through the creation of new businesses. We apply this framework to analyze Singapore's science park …


Exploring Sectoral Elasticity Vis-À-Vis Per Worker Income With A Focus To Agriculture: A Study Of Sub-Saharan Africa, Ronald R. Kumar, Radika Kumar Jan 2012

Exploring Sectoral Elasticity Vis-À-Vis Per Worker Income With A Focus To Agriculture: A Study Of Sub-Saharan Africa, Ronald R. Kumar, Radika Kumar

Dr Ronald R Kumar

No abstract provided.


Single-Sex Schools, Student Achievement, And Course Selection: Evidence From Rule-Based Student Assignments In Trinidad And Tobago, C. Kirabo Jackson Jan 2012

Single-Sex Schools, Student Achievement, And Course Selection: Evidence From Rule-Based Student Assignments In Trinidad And Tobago, C. Kirabo Jackson

C. Kirabo Jackson

Existing studies on single-sex schooling suffer from biases because students who attend single-sex schools differ in unmeasured ways from those who do not. In Trinidad and Tobago students are assigned to secondary schools based on an algorithm allowing one to address self-selection bias and estimate the causal effect of attending a single-sex school versus a similar coeducational school. While students (particularly females) with strong expressed preferences for single-sex schools benefit, most students perform no better at single-sex schools. Girls at single-sex-schools take fewer sciences courses and more traditionally female subjects.


Governance-Default Risk Relationship And The Demand For Intermediated And Non-Intermediated Debt, Safdar Khan Dec 2011

Governance-Default Risk Relationship And The Demand For Intermediated And Non-Intermediated Debt, Safdar Khan

Safdar Khan

No abstract provided.


A Simple Method To Visualize Results In Nonlinear Regression Models, Daniel Henderson, Subal Kumbhakar, Christopher Parmeter Dec 2011

A Simple Method To Visualize Results In Nonlinear Regression Models, Daniel Henderson, Subal Kumbhakar, Christopher Parmeter

Christopher F. Parmeter

No abstract provided.


Gdp Clustering: A Reappraisal, Michele Battisti, Christopher Parmeter Dec 2011

Gdp Clustering: A Reappraisal, Michele Battisti, Christopher Parmeter

Christopher F. Parmeter

No abstract provided.


A Review Of The Bms Package For R, Shahram Amini, Christopher Parmeter Dec 2011

A Review Of The Bms Package For R, Shahram Amini, Christopher Parmeter

Christopher F. Parmeter

This paper describes the relative merits and attractiveness of the newest Bayesian model averaging package, BMS, available in the statistical software R to implement a Bayesian model averaging exercise. This package provides the user a wide range of customizable priors for conducting a BMA analysis, provides ample graphs to visualize results and offers several alternative model search mechanisms.


Probabilistic Forecasts Of Volatility And Its Risk Premia, Worapree Maneesoonthorn, Gael Martin, Catherine Forbes, Simone Grose Dec 2011

Probabilistic Forecasts Of Volatility And Its Risk Premia, Worapree Maneesoonthorn, Gael Martin, Catherine Forbes, Simone Grose

Worapree Ole Maneesoonthorn

No abstract provided.


Normal Reference Bandwidths For The General Order, Multivariate Kernel Density Derivative Estimator, Christopher Parmeter, Daniel Hendseron Dec 2011

Normal Reference Bandwidths For The General Order, Multivariate Kernel Density Derivative Estimator, Christopher Parmeter, Daniel Hendseron

Christopher F. Parmeter

No abstract provided.


Testing For Regime Swtiching: A Comment, Douglas Steigerwald, Andrew Carter Dec 2011

Testing For Regime Swtiching: A Comment, Douglas Steigerwald, Andrew Carter

Douglas G. Steigerwald

An autoregressive model with Markov-regime switching is analyzed that reflects on the properties of the quasi-likelihood ratio test developed by Cho and White (2007). For such a model, we show that consistency of the quasi-maximum likelihood estimator for the population parameter values, on which consistency of the test is based, does not hold. We describe a condition that ensures consistency of the estimator and discuss the consistency of the test in the absence of consistency of the estimator.


Smooth Coefficient Estimation Of A Seemingly Unrelated Regression, Daniel Henderson, Subal Kumbhakar, Qi Li, Christopher Parmeter Dec 2011

Smooth Coefficient Estimation Of A Seemingly Unrelated Regression, Daniel Henderson, Subal Kumbhakar, Qi Li, Christopher Parmeter

Christopher F. Parmeter

No abstract provided.


A Quick Guide On Sweave, Christopher Parmeter Dec 2011

A Quick Guide On Sweave, Christopher Parmeter

Christopher F. Parmeter

No abstract provided.


Bayesian Estimation Approaches To First-Price Auctions, Subal Kumbhakar, Christopher Parmeter, Efthymios Tsionas Dec 2011

Bayesian Estimation Approaches To First-Price Auctions, Subal Kumbhakar, Christopher Parmeter, Efthymios Tsionas

Christopher F. Parmeter

This paper considers Bayesian estimation strategies for first-price auctions within the independent private value paradigm. We develop an ‘optimization’ error approach that allows for estimation of values assuming that observed bids differ from optimal bids. We further augment this approach by allowing systematic over or underbidding by bidders using ideas from the stochastic frontier literature. We perform a simulation study to showcase the appeal of the method and apply the techniques to timber auction data collected in British Columbia. Our results suggest that significant underbidding is present in the timber auctions.


Quasi-Experiments And Hedonic Property Value Methods, Christopher Parmeter, Jaren Pope Dec 2011

Quasi-Experiments And Hedonic Property Value Methods, Christopher Parmeter, Jaren Pope

Christopher F. Parmeter

There has recently been a dramatic increase in the number of papers that have combined quasi-experimental methods with hedonic property models. This is largely due to the concern that cross-sectional hedonic methods may be severely biased by omitted variables. While the empirical literature has developed extensively, there has not been a consistent treatment of the theory and methods of combining hedonic property models with quasi-experiments. The purpose of this chapter is to fill this void. An effort is made to provide background information on the traditional hedonic theory, the traditional cross-sectional hedonic methods as well as the newer quasi-experimental hedonic …


Empirical Implementation Of Nonparametric First-Price Auction Models, Daniel Henderson, John List, Daniel Millimet, Christopher Parmeter, Michael Price Dec 2011

Empirical Implementation Of Nonparametric First-Price Auction Models, Daniel Henderson, John List, Daniel Millimet, Christopher Parmeter, Michael Price

Christopher F. Parmeter

Although these estimators are popular in the literature, many key features necessary for proper implementation have yet to be uncovered. Here we provide several suggestions for nonparametric estimation of first-price auction models. Specifically, we show how to impose monotonicity of the equilibrium bidding strategy; a key property of structural auction models not guaranteed in standard nonparametric estimation. We further develop methods for automatic bandwidth selection. Finally, we discuss how to impose monotonicity in auctions with differing numbers of bidders, reserve prices, and auction-specific characteristics. Finite sample performance is examined using simulated data as well as experimental auction data.


Comparisons Of Model Averaging Techniques: Assessing Growth Determinants, Shahram Amini, Christopher Parmeter Dec 2011

Comparisons Of Model Averaging Techniques: Assessing Growth Determinants, Shahram Amini, Christopher Parmeter

Christopher F. Parmeter

This paper replicates three important studies on growth theory uncertainty that employed Bayesian model averaging tools. We compare these results with estimates obtained using recently developed frequentist and alternative Bayesian model averaging techniques. Overall, we successfully replicate all three studies using freely available software in the statistical environment R, provide an easily implementable algorithm to operationalize the frequentist model averaging methods and find that the sign and magnitude of these new estimates are reasonably close to those produced via traditional Bayesian methods.


Income Polarization, Convergence Tools And Mixture Analysis, Michele Battisti, Christopher Parmeter Dec 2011

Income Polarization, Convergence Tools And Mixture Analysis, Michele Battisti, Christopher Parmeter

Christopher F. Parmeter

Modeling the cross-country distribution of per capita using mixture analysis provides a natural platform for the recovery or detection of clubs of countries. Unfortunately, these mixture methods, when based on a strictly univariate approach are limiting towards one's ability to learn about the underlying process of the emergence of the clubs. This paper takes a fresh look at the sources contributing to the emergence of clubs in the distribution of cross-country output using bivariate and multivariate mixture analysis.


Empirical Evidence For Decreasing Returns To Scale In A Health Capital Model, Titus Galama, Patrick Hullegie, Meijer Erik, Sarah Outcault Dec 2011

Empirical Evidence For Decreasing Returns To Scale In A Health Capital Model, Titus Galama, Patrick Hullegie, Meijer Erik, Sarah Outcault

Titus Galama

We estimate a health investment equation, derived from a health capital model that is an extension of the well-known Grossman model. Of particular interest is whether the health production function has constant returns to scale, as in the standard Grossman model, or decreasing returns to scale, as in the Ehrlich-Chuma model and extensions thereof. The model with decreasing returns to scale has a number of theoretically and empirically desirable characteristics that the constant returns model does not have. Although our empirical equation does not point-identify the decreasing returns to scale curvature parameter, it does allow us to test for constant …


Canonical Higher-Order Kernels For Density Derivative Estimation, Daniel J. Henderson, Christopher Parmeter Dec 2011

Canonical Higher-Order Kernels For Density Derivative Estimation, Daniel J. Henderson, Christopher Parmeter

Christopher F. Parmeter

In this note we present rth-order kernel density derivative estimators using canonical higher-order kernels. These canonical rescalings uncouple the choice of kernel and scale factor. This approach is useful for selection of the order of the kernel in a data-driven procedure as well as for visual comparison of kernel estimates.