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Article
Publication date: 4 April 2023

Hayelom Yrgaw Gereziher and Naser Yenus Nuru

This paper aims to examine the asymmetric effects of exchange rate shocks on inflation for a small open economy, namely South Africa, over the period 1970Q1–2020Q1.

Abstract

Purpose

This paper aims to examine the asymmetric effects of exchange rate shocks on inflation for a small open economy, namely South Africa, over the period 1970Q1–2020Q1.

Design/methodology/approach

A threshold vector autoregressive model that allows parameters to switch according to whether a threshold variable crosses an estimated threshold is employed to address the objective of this paper. The threshold value is determined endogenously using the Hansen (1996) test. Generalized impulse responses introduced by Koop et al. (1996) are used to study the effects of exchange rate shocks on inflation depending on their size, sign and timing to the inflation cycle. The authors also employed a Cholesky decomposition identification scheme to identify exchange rate shocks in the non-linear model.

Findings

The results show that there is a non-linearity effect of the exchange rate shock on inflation. In particular, the effects of 1 or 2 standard deviations of positive (appreciation) or negative (depreciation) exchange rate shock on inflation are small in the long run but a bit larger in the high inflation regime than the low inflation regime.

Originality/value

This paper contributes to the literature on the non-linear effects of exchange rate pass-through (ERPT) to inflation for Sub-Saharan African economies in general and the South African economy in particular by incorporating the size and timing of the exchange rate shocks to the inflation cycle.

Details

African Journal of Economic and Management Studies, vol. 14 no. 4
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 23 April 2024

Nadia Assidi, Ridha Nouira, Sami Saafi, Walid Abdelfattah and Sami Ben Mim

The purpose of this study is to assess the impact of the shadow economy on three sustainable development indicators while considering the moderating effect of the governance…

Abstract

Purpose

The purpose of this study is to assess the impact of the shadow economy on three sustainable development indicators while considering the moderating effect of the governance quality, and to highlight the non-linearity of the considered relationship.

Design/methodology/approach

A sample of 82 countries covering the period from 1996 to 2017. The dynamic first-differenced generalized method of moments (FD-GMM) panel threshold model is implemented to control for non-linearity.

Findings

The shadow economy hinders sustainable development in countries with low-governance quality, while the opposite result holds in countries with high-governance quality. The critical thresholds triggering the switch from one regime to another vary across the sustainable development indicators. Boosting growth requires enhancing the legal system and the economic dimension of governance, while promoting environmental quality requires the implementation and enforcement of specific environment-friendly regulations.

Originality/value

The study addresses non-linearity and the moderating effect of governance quality. The use of six governance indicators allows to gauge the ability of each governance dimension to curb the negative effects of the shadow economy. Considering the three objectives of sustainable development allows to identify specific policy recommendations for each of them.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 22 December 2023

Veli Yılancı, Mustafa Kırca, Şeri̇f Canbay and Muhlis Selman Sağlam

This study aims to test the unemployment hysteresis hypothesis for Nordic countries by considering age and gender differentials at various frequencies.

Abstract

Purpose

This study aims to test the unemployment hysteresis hypothesis for Nordic countries by considering age and gender differentials at various frequencies.

Design/methodology/approach

First, the authors test the linearity of the unemployment series and apply appropriate unit root tests based on the linearity test results. The authors use these tests for both original and wavelet-decomposed unemployment rates.

Findings

The authors' findings indicate that the results obtained from the original and decomposed series differ. While the authors find evidence of unemployment hysteresis in the six unemployment rates in the short run, they observe supportive results for hysteresis in the three unemployment rates in the long run.

Originality/value

The authors take into account different age and gender groups. Furthermore, the authors propose a testing strategy for unemployment hysteresis that considers the nonlinearity and structural breaks in unemployment rates. Finally, the authors determine whether the unemployment hysteresis is valid at various frequencies.

Details

International Journal of Manpower, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 11 December 2023

Stephanie Fabri, Lisa A. Pace, Vincent Cassar and Frank Bezzina

The European Innovation Scoreboard is an important indicator of innovation performance across European Member States. Despite its wide application, the indicator fails to…

Abstract

Purpose

The European Innovation Scoreboard is an important indicator of innovation performance across European Member States. Despite its wide application, the indicator fails to highlight the interlinkages that exist among innovation measures and focuses primarily on the linear relationship between the individual measures and the predicted outcome. This study aims to address this gap by applying a novel technique, the fuzzy-set qualitative comparative analysis (fsQCA), to shed light on these interlinkages and highlight the complexity of the determinants underlying innovation performance.

Design/methodology/approach

The authors adopted a configurational approach based on fsQCA that is implemented on innovation performance data from European Member States for the period 2011–2018. The approach is based on non-linearity and allows for the analysis of interlinkages based on equifinality, that is, the model recognises that there are different potential paths of high and low innovation performance. In addition, the approach allows for asymmetric relations, where a low innovation outcome is not the exact inverse of that which leads to high innovation outcome.

Findings

The results clearly indicate that innovation outcomes are not based on simple linear relations. Thus, to reap the desired effects from investments in innovation inputs, the complex set of indicators on which innovation performance is based should be taken into consideration. The results clearly indicate the elements of equifinality and asymmetric relations. Different paths lead to high innovation performance and low innovation performance.

Originality/value

The method applied to investigate the determinants of innovation performance is the prime original factor of this study. Thus, the study contributes to literature by highlighting the complexity involved in understanding innovation. By recognising and attempting to detangle this complexity, this study will assist not just academics but also policymakers in designing the necessary measures required to reach this important outcome for a country’s competitive edge.

Details

International Journal of Innovation Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-2223

Keywords

Article
Publication date: 4 January 2024

Sylvester Senyo Horvey, Jones Odei-Mensah and Albert Mushai

Insurance companies play a significant role in every economy; hence, it is essential to investigate and understand the factors that propel their profitability. Unlike previous…

Abstract

Purpose

Insurance companies play a significant role in every economy; hence, it is essential to investigate and understand the factors that propel their profitability. Unlike previous studies that present a linear relationship, this study provides initial evidence by exploring the non-linear impacts of the determinants of profitability amongst life insurers in South Africa.

Design/methodology/approach

The study uses a panel dataset of 62 life insurers in South Africa, covering 2013–2019. The generalised method of moments and the dynamic panel threshold estimation technique were used to estimate the relationship.

Findings

The empirical results from the direct relationship reveal that investment income and solvency significantly predict life insurance companies' profitability. On the other hand, underwriting risk, reinsurance and size reduce profitability. Further, the dynamic panel threshold analysis confirms non-linearities in the relationships. The results show that insurance size, investment income and solvency promote profitability beyond a threshold level, implying a propelling effect on life insurers' profitability at higher levels. Below the threshold, these factors have an adverse effect. The study further points to underwriting risk, reinsurance and leverage having a reduced effect on life insurers' profitability when they fall above the threshold level.

Practical implications

The findings suggest that insurers interested in boosting their profit position must commit more resources to maintain their solvency and manage their assets and returns on investment. The study further recommends that effective control of underwriting risk is critical to the profitability of the life insurance industry.

Originality/value

The study contributes to the literature by providing first-time evidence on the determinants of life insurance companies' profitability by way of exploring threshold effects in South Africa.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 29 September 2023

Olufemi Gbenga Onatunji, Oluwayemisi Kadijat Adeleke and Akintoye Victor Adejumo

This study reinvestigates the validity of the Phillips curve in Nigeria for the period 1980–2020 by considering the asymmetric nexus between unemployment and inflation.

Abstract

Purpose

This study reinvestigates the validity of the Phillips curve in Nigeria for the period 1980–2020 by considering the asymmetric nexus between unemployment and inflation.

Design/methodology/approach

The nonlinear autoregressive distributed lag (NARDL) technique was used to decompose the unemployment variable into two components: tight and loosened labour markets.

Findings

The empirical outcome shows that unemployment has a significant negative effect on inflation when the labour market is tight and a weakly negative and significant effect on inflation when the labour market is loose. The study confirms an asymmetric Phillips curve in Nigeria since the positive (tight) unemployment rate exerts a greater effect on inflation than the negative (loosened) unemployment rate.

Practical implications

The findings of this study have important implications for implementing monetary policy in Nigeria.

Originality/value

To the best of the authors’ knowledge, this is the first study to investigate the existence of a nonlinear Phillip curve in Nigeria.

Details

African Journal of Economic and Management Studies, vol. 15 no. 1
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 19 April 2024

Ellen A. Donnelly, Madeline Stenger, Daniel J. O'Connell, Adam Gavnik, Jullianne Regalado and Laura Bayona-Roman

This study explores the determinants of police officer support for pre-arrest/booking deflection programs that divert people presenting with substance use and/or mental health…

Abstract

Purpose

This study explores the determinants of police officer support for pre-arrest/booking deflection programs that divert people presenting with substance use and/or mental health disorder symptoms out of the criminal justice system and connect them to supportive services.

Design/methodology/approach

This study analyzes responses from 254 surveys fielded to police officers in Delaware. Questionnaires asked about views on leadership, approaches toward crime, training, occupational experience and officer’s personal characteristics. The study applies a new machine learning method called kernel-based regularized least squares (KRLS) for non-linearities and interactions among independent variables. Estimates from a KRLS model are compared with those from an ordinary least square regression (OLS) model.

Findings

Support for diversion is positively associated with leadership endorsing diversion and thinking of new ways to solve problems. Tough-on-crime attitudes diminish programmatic support. Tenure becomes less predictive of police attitudes in the KRLS model, suggesting interactions with other factors. The KRLS model explains a larger proportion of the variance in officer attitudes than the traditional OLS model.

Originality/value

The study demonstrates the usefulness of the KRLS method for practitioners and scholars seeking to illuminate patterns in police attitudes. It further underscores the importance of agency leadership in legitimizing deflection as a pathway to addressing behavioral health challenges in communities.

Details

Policing: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1363-951X

Keywords

Article
Publication date: 25 March 2024

Yu Huang, Xiaofen Ji, Lina Zhai and Francisca Margarita Ocran

Breast cancer has become the largest cancer in the world today. Health problems for women with breast cancer need to be addressed urgently. This study aims to select the best…

Abstract

Purpose

Breast cancer has become the largest cancer in the world today. Health problems for women with breast cancer need to be addressed urgently. This study aims to select the best method for preparing temperature-sensitive sports underwear, and to verify the feasibility of using K-type thermocouple threads in underwear fabrics.

Design/methodology/approach

In the experiments, two samples were designed for temperature-sensitive performance tests and the effects produced by different outer layer structures were investigated. In the second step, K-type thermocouple wires were integrated into sports underwear. The comfort and feasibility of the temperature-sensitive underwear were investigated.

Findings

It was finally verified to obtain the best comfort and temperature-sensing performance of K-type thermocouple filaments integrated into sports underwear with plain stitching.

Originality/value

The underwear has a certain prospect for the application of smart apparel based on breast cancer health monitoring, which is of some significance for monitoring smart apparel.

Details

International Journal of Clothing Science and Technology, vol. 36 no. 2
Type: Research Article
ISSN: 0955-6222

Keywords

Open Access
Article
Publication date: 2 November 2023

Oscar Claveria and Petar Sorić

The purpose of this paper is to investigate the adjustment of government redistributive policies in Scandinavian and Mediterranean countries following changes in income inequality…

1058

Abstract

Purpose

The purpose of this paper is to investigate the adjustment of government redistributive policies in Scandinavian and Mediterranean countries following changes in income inequality over the period 1980–2021.

Design/methodology/approach

The authors first modelled the time-varying dynamics between income inequality and redistribution and then used a non-linear framework to test for the existence of asymmetries and cointegration in their long-run relationship. The authors used two complementary measures of inequality – the share of total income accruing to top percentile income holders and the ratio of the share of total income accruing to top decile income holders divided by that accumulated by the bottom 50% – and computed redistribution as the difference between the two inequality indicators before and after taxes and transfers.

Findings

The authors found that the sign of the relationship between income inequality and redistribution is mostly positive and time-varying. Overall, the authors also found evidence that the impact of increases in inequality on redistributive measures is higher than that of decreases. Finally, the authors obtained a significant long-run relationship between both variables in all countries except Denmark and Spain. These results hold for both Scandinavian and Mediterranean countries.

Originality/value

To the best of the authors’ knowledge, this is the first paper to account for the potential existence of non-linearities and to examine the asymmetries in the adjustment of redistributive policies to increases in income inequality using alternative income inequality metrics.

Details

Applied Economic Analysis, vol. 32 no. 94
Type: Research Article
ISSN: 2632-7627

Keywords

Article
Publication date: 22 November 2023

Emery Petchauer, Tia Harvey and Rolando Ybarra

This paper aims to explore sonic play in close proximity to a music, literacy and songwriting for social change community-based initiative. The authors leverage ideas about time…

Abstract

Purpose

This paper aims to explore sonic play in close proximity to a music, literacy and songwriting for social change community-based initiative. The authors leverage ideas about time, space and narrative under the concept of sonic flux to understand youth’s sonic and aural play on digital beatmaking technologies. In doing so, the authors break from a fixation on the written and spoken word and address sound, aurality and Blacktronika creative technologies that are often present but muted in literacies and songwriting scholarship.

Design/methodology/approach

The authors’ team consisted of three community-based teaching artists who situated this inquiry around their own practice with youth. The authors conducted this inquiry through a qualitative, participatory and community-engaged research approach. As such, the authors codeveloped and carried out research questions and sense-making protocols that balance the power of interpretation and epistemologies among us.

Findings

The findings address how the joy, laughter and play of one young musician, Malik, moved across different conceptions of time while learning to make beats in proximity to peers writing lyrics for songs. Specifically, the authors unpack how Malik’s play with mobile sound-making technologies moved across linear and nonlinear time that characterize sonic space and sound art, not music and lyric writing. In doing so, the loops and durations of his sonic play were sometimes unbound by narrative structures that often code literacy and songwriting initiatives.

Originality/value

The authors’ inquiry speaks into literacy and songwriting initiatives that privilege spoken, written and performed word over sound. The authors ask what kind of participating structures, collaborations, ontologies and youth epistemologies open up if we think of youth in these spaces not only as performers but as programmers tinkering with time in the machine. In addition, the authors ask what literacy and songwriting spaces might look like when the duration, loops and drones of sonic space and not music are the structuring codes over narratives and linearity.

Details

English Teaching: Practice & Critique, vol. 22 no. 4
Type: Research Article
ISSN: 1175-8708

Keywords

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