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1 – 10 of 70While there exist many surveys on the use stochastic frontier analysis (SFA), many important issues and techniques in SFA were not well elaborated in the previous surveys, namely…
Abstract
Purpose
While there exist many surveys on the use stochastic frontier analysis (SFA), many important issues and techniques in SFA were not well elaborated in the previous surveys, namely, regular models, copula modeling, nonparametric estimation by Grenander’s method of sieves, empirical likelihood and causality issues in SFA using regression discontinuity design (RDD) (sharp and fuzzy RDD). The purpose of this paper is to encourage more research in these directions.
Design/methodology/approach
A literature survey.
Findings
While there are many useful applications of SFA to econometrics, there are also many important open problems.
Originality/value
This is the first survey of SFA in econometrics that emphasizes important issues and techniques such as copulas.
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Chao Yu, Haiying Li, Xinyue Xu and Qi Sun
During rush hours, many passengers find it difficult to board the first train due to the insufficient capacity of metro vehicles, namely, left behind phenomenon. In this paper, a…
Abstract
Purpose
During rush hours, many passengers find it difficult to board the first train due to the insufficient capacity of metro vehicles, namely, left behind phenomenon. In this paper, a data-driven approach is presented to estimate left-behind patterns using automatic fare collection (AFC) data and train timetable data.
Design/methodology/approach
First, a data preprocessing method is introduced to obtain the waiting time of passengers at the target station. Second, a hierarchical Bayesian (HB) model is proposed to describe the left behind phenomenon, in which the waiting time is expressed as a Gaussian mixture model. Then a sampling algorithm based on Markov Chain Monte Carlo (MCMC) is developed to estimate the parameters in the model. Third, a case of Beijing metro system is taken as an application of the proposed method.
Findings
The comparison result shows that the proposed method performs better in estimating left behind patterns than the existing Maximum Likelihood Estimation. Finally, three main reasons for left behind phenomenon are summarized to make relevant strategies for metro managers.
Originality/value
First, an HB model is constructed to describe the left behind phenomenon in a target station and in the target direction on the basis of AFC data and train timetable data. Second, a MCMC-based sampling method Metropolis–Hasting algorithm is proposed to estimate the model parameters and obtain the quantitative results of left behind patterns. Third, a case of Beijing metro is presented as an application to test the applicability and accuracy of the proposed method.
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Laila Arjuman Ara and Mohammad Masudur Rahman
This paper examined the volatility models for exchange rate return, including Random Walk model, AR model, GARCH model and extensive GARCH model, with Normal and Student-t…
Abstract
This paper examined the volatility models for exchange rate return, including Random Walk model, AR model, GARCH model and extensive GARCH model, with Normal and Student-t distribution assumption as well as nonparametric specification test of these models. We fit these models to Bangladesh foreign exchange rate index from January 1999 to December 31, 2012. The return series of Bangladesh foreign exchange rate are leptokurtic, significant skewness, deviation from normality as well as the returns series are volatility clustering as well. We found that student t distribution into GARCH model improves the better performance to forecast the volatility for Bangladesh foreign exchange market. The traditional likelihood comparison showed that the importance of GARCH model in modeling of Bangladesh foreign market, but the modern nonparametric specification test found that RW, AR and the model with GARCH effect are still grossly mis-specified. All these imply that there is still a long way before we reach the adequate specification for Bangladesh exchange rate dynamics.
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David Trafimow, Ziyuan Wang, Tingting Tong and Tonghui Wang
The purpose of this article is to show the gains that can be made if researchers were to use gain-probability (G-P) diagrams.
Abstract
Purpose
The purpose of this article is to show the gains that can be made if researchers were to use gain-probability (G-P) diagrams.
Design/methodology/approach
The authors present relevant mathematical equations, invented examples and real data examples.
Findings
G-P diagrams provide a more nuanced understanding of the data than typical summary statistics, effect sizes or significance tests.
Practical implications
Gain-probability diagrams provided a much better basis for making decisions than typical summary statistics, effect sizes or significance tests.
Originality/value
G-P diagrams provide a completely new way to traverse the distance from data to decision-making implications.
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Mahmoud ELsayed and Amr Soliman
The purpose of this study is to estimate the linear regression parameters using two alternative techniques. First technique is to apply the generalized linear model (GLM) and the…
Abstract
Purpose
The purpose of this study is to estimate the linear regression parameters using two alternative techniques. First technique is to apply the generalized linear model (GLM) and the second technique is the Markov Chain Monte Carlo (MCMC) method.
Design/methodology/approach
In this paper, the authors adopted the incurred claims of Egyptian non-life insurance market as a dependent variable during a 10-year period. MCMC uses Gibbs sampling to generate a sample from a posterior distribution of a linear regression to estimate the parameters of interest. However, the authors used the R package to estimate the parameters of the linear regression using the above techniques.
Findings
These procedures will guide the decision-maker for estimating the reserve and set proper investment strategy.
Originality/value
In this paper, the authors will estimate the parameters of a linear regression model using MCMC method via R package. Furthermore, MCMC uses Gibbs sampling to generate a sample from a posterior distribution of a linear regression to estimate parameters to predict future claims. In the same line, these procedures will guide the decision-maker for estimating the reserve and set proper investment strategy.
Joseph Lwaho and Bahati Ilembo
This paper was set to develop a model for forecasting maize production in Tanzania using the autoregressive integrated moving average (ARIMA) approach. The aim is to forecast…
Abstract
Purpose
This paper was set to develop a model for forecasting maize production in Tanzania using the autoregressive integrated moving average (ARIMA) approach. The aim is to forecast future production of maize for the next 10 years to help identify the population at risk of food insecurity and quantify the anticipated maize shortage.
Design/methodology/approach
Annual historical data on maize production (hg/ha) from 1961 to 2021 obtained from the FAOSTAT database were used. The ARIMA method is a robust framework for forecasting time-series data with non-seasonal components. The model was selected based on the Akaike Information Criteria corrected (AICc) minimum values and maximum log-likelihood. Model adequacy was checked using plots of residuals and the Ljung-Box test.
Findings
The results suggest that ARIMA (1,1,1) is the most suitable model to forecast maize production in Tanzania. The selected model proved efficient in forecasting maize production in the coming years and is recommended for application.
Originality/value
The study used partially processed secondary data to fit for Time series analysis using ARIMA (1,1,1) and hence reliable and conclusive results.
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Yaqin Zou, Xuemei Jiang, Caiyun Wen and Yang Li
After the Collective Forest Tenure Reform (CFTR) in China, the enthusiasm of farmers for forestry management is stimulated. However, the forest tenure security varies among…
Abstract
Purpose
After the Collective Forest Tenure Reform (CFTR) in China, the enthusiasm of farmers for forestry management is stimulated. However, the forest tenure security varies among farmers, making the research conclusions of its impact on forestry management efficiency inconsistent. Based on the survey data of 1,627 households from the collective forest regions in 6 provinces of China in 2017, this paper not only discusses the differences of farmers' forestry management efficiency after the reform, but also further explores the heterogeneous impact of forest tenure security on forestry management efficiency in combination with different forest management types.
Design/methodology/approach
This study employed the stochastic frontier production function model to measure the forestry management efficiency of farmers. Then, Tobit models were used to discuss the influencing factors of farmers' forestry management efficiency.
Findings
The results demonstrate that the improvement of farmers' forest tenure security can effectively improve forestry management efficiency, but the effect is affected by forest management types. For farmers who manage economic forests and non-timber forests, safe tenure promotes the forestry management efficiency; while for those who manage ecological public welfare forests, tenure security plays an opposite role.
Originality/value
Therefore, satisfying farmers' differentiated demands for forest tenure according to forest management types to improve forest tenure security and further refining supporting policies of collective forestry reform is of great significance to improve the efficiency of farmers' forestry management in collective forest regions.
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Ahmed Bounfour, Jean-Michel Etienne, Xiaolin Cheng and Alberto Nonnis
The paper aims to address the organizational transformation of firms for value creation resulting from cloud computing (CC).
Abstract
Purpose
The paper aims to address the organizational transformation of firms for value creation resulting from cloud computing (CC).
Design/methodology/approach
With reference to the theory of organizational fit, we modeled organizational transformation as a function of five aspects of CC practice: functionality, data management, roles and competences of information technology services, control and organizational culture. The output variable was tested against a set of input variables defined with reference to the technology–organization–environment (TOE) and technology acceptance model (TAM). Based on a sample of 487 companies in seven countries in Europe, Asia, and the United States, the authors distinguished two groups of firms: transformational and hyper transformational.
Findings
The results highlight the key factors that determine whether a firm falls into one of these two groups, and include perceived usefulness and perceived ease of use, complexity and compatibility of CC technology, and adequacy of resources. Top management support and government policy are found to only play a role for the transformational group while, surprisingly, vendor support had no impact for either group.
Originality/value
This research contributes to the literature on the role of digital transformation in value creation and on digitization of firms and organizational design, notably by considering the contribution of CC to the organizational dimension. To the best of the authors’ knowledge, this is the first study to make the link between TOE and TAM models and organizational fit theory, thereby going beyond the general approach to adoption found in information system research.
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