Showing papers in "Economic Modelling in 2010"

TL;DR: In this paper, the authors investigate the systemic link between economic freedom, foreign direct investment (FDI) and economic growth in a panel of 85 countries and reveal that FDI by itself has no direct (positive) effect on output growth.

TL;DR: The authors employ the Pooled Mean Group (PMG) approach of Pesaran et al. to study the dynamic effects of trade openness on financial development, finding that a positive long-run relationship between trade openness and financial development coexists with a negative short run relationship.

TL;DR: In this paper, the authors examined the effects of financial reforms on the determinants of commercial bank net interest margin in the banking systems of the new EU member countries and candidate countries by dividing the sample period (1995-2006) into two sub-periods: consolidation period ( 1995-2000) and post-consolidation period (2001-2006).

TL;DR: Zhang et al. as mentioned in this paper analyzed a duopolistic market with heterogeneous firms when the demand function is iso-elastic and showed two different routes to complicated dynamics: a cascade of flip bifurcations leading to periodic cycles (and chaos) and the Neimark-Sacker Bifurcation which originates an attractive invariant closed curve.

TL;DR: In this article, the authors consider the long-run economic relationship between health care expenditure and income using a panel of 20 OECD countries observed over the period 1971-2004 and find that health care is a necessity rather than a luxury.

TL;DR: This article used a generalised ordered probit model to explore the existence of reporting bias and to purge the self-reported measure of health of this bias, finding that having an employed partner does reduce the hazard of early retirement for both men and women.

TL;DR: In this article, the authors provide an empirical assessment of the growth experiences of European regions, during the period 1991-2004, by taking into account the spatial effects due to both institutions and geography.

TL;DR: In this article, a panel data estimation technique, Panel Smooth Transition Regression (PSTR) model, which takes account of the non-linearities in the data was used to analyze the empirical relationship between inflation and output growth.

TL;DR: In this article, the authors assess the impact of monetary policy on real house price growth in South Africa using a factor-augmented vector autoregression (FAVAR) model.

TL;DR: In this article, a new scalar measure of persistence together with a companion estimator is proposed, which has the advantage of not requiring the specification and estimation of a model for the series under investigation.

TL;DR: The authors investigated the effects of real exchange-rate volatility on exports of ten emerging market economies (EMEs) and eleven other developing countries that were not classified as EMEs over the estimation period.

TL;DR: In this article, the authors test the view that the relation between unemployment and entrepreneurship is dynamic and possibly nonlinear, and they perform Granger-causality tests and STAR-EXT estimation to assess the causality direction and the nonlinear nature of the relation for a set of OECD countries.

TL;DR: In this article, the authors evaluate the potential success of these policies in the case of the Spanish economy, and compare them with the results obtained by the (rather modest) reforms already implemented in 1997 and 2001.

TL;DR: In this article, a multivariate t version of the Gaussian dynamic conditional correlation (DCC) model proposed by Engle (2002) is used to model market risk at times of financial crisis.

TL;DR: The results indicate that the assumption of RC is not innocuous and that the extended model relaxing this assumption improves the fit and significantly changes the cross-country rankings of health vis-a-vis the standard Chopit model.

TL;DR: The model is used to compare the effect of interventions designed to increase the vigour with which individuals undertake their sport, relating it to obesity as a health outcome.

TL;DR: In this article, the authors analyzed the impact of services trade liberalization on industrial structure and showed that the gains from trade liberalisation are non-linear in trade costs and that going the last mile of liberalization has a much larger impact than taking the first steps.

TL;DR: In this paper, a mean-variance portfolio selection problem under a hidden Markovian regime-switching Black-Scholes-Merton economy is studied, where the appreciation rate of a risky share is modulated by a continuous-time, finite-state hidden markov chain whose states represent different states of an economy, and a robust filter-based EM algorithm for online recursive estimates of the unknown parameters in the model is developed.

TL;DR: In this paper, a new framework for pricing the European currency option is developed in the case where the spot exchange rate fellows a fractional Brownian motion with jumps, and an analytic formula for pricing European foreign currency options is proposed using the equivalent martingale measure.

TL;DR: In this article, the effects of some distortions induced by the prospective payment system, i.e., upcoding, cream skimming and readmissions, on hospitals' technical efficiency are analyzed.

TL;DR: In this paper, the authors studied the nonlinear dynamics of the real exchange rate towards its behavioral equilibrium value using a Panel Smooth Transition Regression model framework and showed that the convergence process in the long-run is characterized by nonlinearities for emerging economies, whereas industrialized countries exhibit a linear pattern.

TL;DR: In this article, the authors re-investigates whether there exist inflation thresholds in the finance-growth linkage and find strong evidence of a nonlinear inflation threshold in the relationship, below which financial development exerts a significantly positive effect on economic growth, while, above which, the growth effect of finance appears to be insignificant.

TL;DR: In this paper, the authors present a CGE model that has been modified to include the emissions and EOP abatement of PM, SO2, and NOx from stationary sources in the EU-17.

TL;DR: The authors examined the informational content of New Zealand data releases using a parametric dynamic factor model estimated with unbalanced real-time panels of quarterly data and found that, at some horizons, the factor model produces forecasts of similar accuracy to the Reserve Bank's forecasts.

TL;DR: The authors examined the relationship between inflation uncertainty, inflation and growth using annual historical data on industrial countries covering in many cases more than one century, and they obtained the following results: (1) there is significant evidence for the positive effect of inflation uncertainty on inflation supporting the Cukierman-Meltzer hypothesis.

TL;DR: This paper explored the reasons for Russian monetary policy failure to achieve sustained low inflation, both in absolute terms and relative to the peer group of countries similarly exiting from Soviet-style central planning, by analyzing the kind of monetary policy that has been pursued by the central bank during the period 1995 to 2009.

TL;DR: In this article, the authors developed a Partial Equilibrium (PE) model that captures international trade, domestic consumption and output, using Constant Elasticity of Transformation (CET) and Constant Elasticity of Substitution (CES) structures, market clearing conditions and price linkages, nested within the standard GTAP model.

TL;DR: In this article, the authors apply the heterogeneous panel cointegration method to examine the long-run relationship between the real exchange rate and bilateral trade balance of the U.S. and its 97 trading partners for the period 1973-2006.

TL;DR: In this article, an extended version of the Solow (1956) growth model is developed in which total factor productivity is assumed a function of two important externalities viz., learning by doing and openness to trade.

TL;DR: In this article, a three-sector general equilibrium framework was developed to explain the unemployment of both skilled and unskilled workers in the USA, where two types of capital are specific to the primary export sector and the other moves freely among the different sectors.