Economics Bulletin 

About: Economics Bulletin is an academic journal. The journal publishes majorly in the area(s): Exchange rate & Cointegration. It has an ISSN identifier of 1545-2921. Over the lifetime, 4297 publications have been published receiving 27632 citations.

Minimum LM Unit Root Test with One Structural Break

Abstract: In this paper, we propose a minimum LM unit root test that endogenously determines a structural break in intercept and trend. Critical values are provided, and size and power properties are compared to the endogenous one-break unit root test of Zivot and Andrews (1992). Nunes, Newbold, and Kuan (1997) and Lee and Strazicich (2001) previously demonstrated that the Zivot and Andrews test exhibits size distortions in the presence of a break under the null. In contrast, the one-break minimum LM unit root test exhibits no size distortions in the presence of a break under the null. As such, rejection of the null unambiguously implies a trend stationary process.

Explaining Disparities between Actual and Hypothetical Stated Values: Further Investigation Using Meta-Analysis

Abstract: Spurred by the need to account for non-market values in various policy applications, a lively and extended debate has surrounded the presence and magnitude of hypothetical bias in stated value studies (e.g., applications of the survey-based contingent valuation method). Using the rapidly accumulating set of comparison studies, List and Gallet (2001) conducted an initial meta-analysis of the experimental protocol that may be influencing the disparity between real and hypothetical values in stated value studies. We expand the original meta-analysis by using a significantly larger (29%) data set, including variables to account for referendum formats, certainty corrections, and cheap talk scripts.

Which Lag Length Selection Criteria Should We Employ

Abstract: Estimating the lag length of autoregressive process for a time series is a crucial econometric exercise in most economic studies. This study attempts to provide helpfully guidelines regarding the use of lag length selection criteria in determining the autoregressive lag length. The most interesting finding of this study is that Akaike's information criterion (AIC) and final prediction error (FPE) are superior than the other criteria under study in the case of small sample (60 observations and below), in the manners that they minimize the chance of under estimation while maximizing the chance of recovering the true lag length. One immediate econometric implication of this study is that as most economic sample data can seldom be considered “large” in size, AIC and FPE are recommended for the estimation the autoregressive lag length.

A Structural VAR Analysis of Renewable Energy Consumption, Real GDP and CO2 Emissions: Evidence from India

Abstract: This study has attempted to analyze the dynamics of renewable energy consumption, economic growth, and CO2 emissions For the analysis, we used structural VAR approach Results of unit root tests show that all variables are non-stationary at their level form and stationary in first difference form and cointegration analysis, analyzed through Johansen-Juselius (1990), shows that there is no evidence of cointegration among the test variables The innovations analysis of study reveals that a positive shock on the consumption of renewable energy source increases GDP and decreases CO2 emissions and a positive shock on GDP have a very high positive impact on the CO2 emissions The variance decomposition shows the share of consumption of renewable energy source explained a significant part of the forecast error variance of GDP and a relatively smaller or negligible part of the forecast error variance of CO2 emissions

Exchange rate and trade balance in east asia: is there a J-curve?

Abstract: This paper examines the short run and long run effects of real exchange rate changes on the real trade balance of three ASEAN countries in their bilateral trade to the US and Japan within a cointegrating vector error correction model (VECM). Generalized impulse response funtions are estimated to investigate the response to shocks. VECM estimates suggest one long-run steady-state cointegrating relationship among real trade balance, real exchange rate, real domestic and foreign income in each country. Although considerable variations exist in the results, overall the generalized impulse response functions suggest that the Marshall-Lerner condition holds in the long-run with varying degree of J-curve effects in the short-run.