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Article
Publication date: 19 December 2022

Gizem Uzuner, Bünyamin Fuat Yıldız, Murat Anıl Mercan and Wing-Keung Wong

The specific objective of the study is to investigate the presence of natural rate of crime rates in selected emerging economies by using panel unit roots. The majority of the…

Abstract

Purpose

The specific objective of the study is to investigate the presence of natural rate of crime rates in selected emerging economies by using panel unit roots. The majority of the literature examines the issue using conventional unit root tests in a country-specific context. Meanwhile, there is no panel unit root investigation has been undertaken considering both cross-sectional dependence (CD) and structural changes.

Design/methodology/approach

As a result, this study is to fill the aforementioned gap and validate the natural rate of crime rates for 10 countries by using a Fourier panel unit root test. The advantage of the test is that structural shifts are modelled as gradual or smooth changes with a Fourier approximation, and it also accounts cross-sectional dependency. Thus, the Fourier panel unit root test may have better performance in capturing potential changes in the nature of data.

Findings

The result of the conventional unit roots test shows evidence of the hysteresis effect in crime, as it stands does not adequately account for smooth transitions or breaks. On contrary, the Fourier panel unit root test confirms the natural rate hypothesis in crime rates. The present results highlight the detrimental effects of crime cannot be abated by short-run deterrence policies.

Originality/value

Contrary to previous studies, the theoretical implications of the study imply that the empirical models consider the dynamic nature of crime rates should account for natural rate properties instead of the hysteresis assumption.

Details

Kybernetes, vol. 53 no. 3
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 4 September 2020

Veli Yilanci and Muhammed Sehid Gorus

In this study, we aim to test the stochastic convergence of per capita clean energy use in 30 OECD (Organization for Economic Co-operation and Development) countries for the…

Abstract

Purpose

In this study, we aim to test the stochastic convergence of per capita clean energy use in 30 OECD (Organization for Economic Co-operation and Development) countries for the period of 1965–2017.

Design/methodology/approach

This study employed both linear and nonlinear panel unit root tests, and unlike other studies, this study allowed fractional values in addition to integer values for frequencies in the Fourier functions. Integer values of frequency indicate temporary breaks, while fractional values show permanent breaks.

Findings

The results of the linear panel unit root test indicate that clean energy use does not converge to group average for almost all OECD countries. However, the results of nonlinear panel unit root tests provide evidence that the stochastic convergence hypothesis of clean energy consumption cannot be rejected for most countries. This study does not find any evidence for stochastic convergence of clean energy use in Australia, Canada, Denmark, Ireland, Norway or Sweden. Therefore, the policies regarding clean energy are mandatory in these countries due to their effectiveness. This study also reveals that there are permanent structural breaks in the convergence process of clean energy consumption in approximately half of OECD countries.

Originality/value

This study considers temporary and permanent smooth structural shifts in addition to nonlinearity when testing the stationarity of clean energy consumption in a country i relative to the group average. This new method eliminates deficiencies of the previous panel data techniques. Thus, it provides more reliable results compared to existing literature.

Details

Management of Environmental Quality: An International Journal, vol. 32 no. 2
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 29 April 2020

Andisheh Saliminezhad and Pejman Bahramian

This paper aims to examine the stochastic convergence of the per capita CO2 emissions among the top four crude oil exporter countries, namely, Canada, Iraq, Russia and Saudi…

Abstract

Purpose

This paper aims to examine the stochastic convergence of the per capita CO2 emissions among the top four crude oil exporter countries, namely, Canada, Iraq, Russia and Saudi Arabia, from 1960 to 2017. Assessing the stationarity and unit root properties of the environmental series in these countries is important as their large fossil fuel resources increases the potential for rising CO2 emissions compared to other countries.

Design/methodology/approach

In addition to implementing the conventional unit root tests, the authors also benefit from the application of three nonlinear unit root tests, namely, wavelet unit root test, nonlinear unit root test of Güriş (2019) and the Fourier quantile unit root test. These methods are robust to the presence of possible structural breaks and other forms of nonlinearities, while the wavelet unit root test enables us to examine the stochastic behavior of the variables in both time and frequency domains. Hence, they all provide more reliable inferences on the convergences of the CO2 emissions compared to their standard competitors.

Findings

The standard unit root test results show strong evidence in favor of non-stationarity in all countries. This conclusion supports the results of the other nonlinear unit root tests and the overall findings of the Fourier quantile unit root test. The wavelet unit root test provides a controversial finding. However, due to its limitations, its findings must be interpreted with caution. The details of the Fourier quantile unit root test indicate that per capita CO2 emissions follow mean-reverting properties in middle quantile ranges for Canada, Russia and Iraq. This validates the asymmetric behaviors of per capita CO2 emissions in these countries.

Originality/value

The novelty of the work can be stated in two ways. First, among the available studies, this is the first paper to emphasize the importance of examining the convergence of per capita CO2 emissions among the top four oil exporters. Second, to the best of the knowledge, no study has yet been undertaken in which all these methods have been simultaneously applied. Sustainable environmental policies depend heavily on the CO2 series’ properties. Thus, the findings can provide significant environmental and economic implications for policymakers to construct feasible and optimal policies in climate change mitigation.

Details

International Journal of Energy Sector Management, vol. 14 no. 6
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 30 August 2019

Arash Hadizadeh

In the Iranian economy, investing in the housing market has been very important and beneficial for investors and households, because of inflationary environment, low real interest…

Abstract

Purpose

In the Iranian economy, investing in the housing market has been very important and beneficial for investors and households, because of inflationary environment, low real interest rates, underdeveloped financial and tax systems and economic sanctions. Hence, prediction of house prices is the main concern of housing market agents in the economy. The purpose of this paper is to test the stationary properties of Iran's provinces to improve the prediction of future housing prices.

Design/methodology/approach

In this paper, the authors have tested the stationary properties of 20 Iran’s province centers over the period from 1993 to 2017 using a novel Fourier quantile unit root test and conventional ordinary/generalized least squares (O/GLS) linear unit root/stationary tests.

Findings

According to conventional O/GLS linear unit root/stationary tests, most of the house prices series exhibit random walk behavior, whereas by applying the Fourier quantile unit root test, the null hypothesis of unit root is rejected for 15 out of 20 series. Other results indicated that house prices of cities responded differently to positive and negative shocks.

Originality/value

Previous studies only addressed conventional OLS or GLS linear unit root or stationary tests, but novel Fourier quantile unit root test was not used. New results were obtained based on this unit root test, that, as a priori knowledge, will help benefiting from the positive effects, or avoiding being victimized by the negative effects.

Details

International Journal of Housing Markets and Analysis, vol. 12 no. 5
Type: Research Article
ISSN: 1753-8270

Keywords

Article
Publication date: 8 September 2021

Zheng-Zheng Li, Chi Wei Su and Ran Tao

This study aims to examine the unemployment hysteresis effects from the perspective of the heterogeneity of genders within Asian countries.

Abstract

Purpose

This study aims to examine the unemployment hysteresis effects from the perspective of the heterogeneity of genders within Asian countries.

Design/methodology/approach

The authors use the annual unemployment rate dataset of 12 Asian countries ranging from 1991–2020. Traditional unit root tests are initially employed to investigate the unemployment hysteresis effect. Considering the structural break and cross-section dependence problems, the sequential panel selection method (SPSM) and the Kapetanios–Snell–Shin (KSS) panel unit root test with Fourier functions have proven to be more applicable.

Findings

The empirical results indicate that the unemployment rate is stationary in most Asian regions for both females and males, which confirms the mean reversion process of the natural unemployment hypothesis. This suggests that these countries' unemployment rates are flexible to quickly revert to its long-run equilibrium determined by the labor markets. However, only the female unemployment rate in Pakistan and Nepal and adult female unemployment rates in these two economies present non-stationary series. In line with the unemployment hysteresis effect, it means shocks will leave a permanent impact on their labor market.

Practical implications

On the one hand, in most of the Asian countries, it can be inferred that the trade-off between inflation and unemployment is temporary because the natural unemployment hypothesis holds. Therefore, policymakers may consider using monetary policy as a tool to control inflation and stimulate growth during a recession. Such policy measures should not have a long-run impact on unemployment or cause a permanent shift in the natural unemployment rate. On the other hand, the government should implement active labor protective programs such as education or training schemes, job search assistance programs and maternity protection, especially for female adults, to reduce the negative shocks in the economic downturn, which is beneficial for them away from being long-term unemployed. It is also necessary to improve the labor unions to reduce the discrimination between female and male labors.

Originality/value

This paper innovatively concentrates on the heterogeneity performances between genders about the unemployment hysteresis effect within Asian countries. Furthermore, taking into account the age-specific characteristics, the youth and adult unemployment rates have been investigated. Additionally, the approximation of bootstrap distribution and the advanced panel KSS unit root test with a Fourier function are employed. Thereby, targeted policies for the government can be applied to reduce the discrimination and negative shocks on female adults in the labor market.

Details

International Journal of Manpower, vol. 42 no. 8
Type: Research Article
ISSN: 0143-7720

Keywords

Abstract

Details

Nonlinear Time Series Analysis of Business Cycles
Type: Book
ISBN: 978-0-44451-838-5

Article
Publication date: 7 January 2014

Aviral Kumar Tiwari and K.G. Suresh

This study aims to examine the stationarity characteristics of per capita GDP of 17 Asian countries and subpanels for South Asia, East Asia, and high income Asian countries in…

761

Abstract

Purpose

This study aims to examine the stationarity characteristics of per capita GDP of 17 Asian countries and subpanels for South Asia, East Asia, and high income Asian countries in nonlinear framework.

Design/methodology/approach

The authors employed a recently developed nonlinear panel unit root test suggested by Ucar and Omaga in PESTAR framework for full panel and the subpanels.

Findings

The results indicate that per capita GDP for the full panel of Asian countries and panel of South Asian countries are linear nonstationary, whereas for the panel of East Asia and high income developed countries have a nonlinear data generating process and are stationary.

Originality/value

The use of newly developed nonlinear panel unit root test for Asian countries is the main contribution of the study. In that aspect, this is the first study to employ such a test in this area.

Details

Journal of Economic Studies, vol. 41 no. 1
Type: Research Article
ISSN: 0144-3585

Keywords

Open Access
Article
Publication date: 26 October 2020

Ebru Çağlayan Akay, Zamira Oskonbaeva and Hoşeng Bülbül

This study aims to examine the hysteresis hypothesis in unemployment using monthly data from 13 countries in transition.

2426

Abstract

Purpose

This study aims to examine the hysteresis hypothesis in unemployment using monthly data from 13 countries in transition.

Design/methodology/approach

Stationarity in the unemployment rate of selected transition economies was analyzed using four different group unit root tests, namely, linear, structural breaks, non-linear and structural breaks and non-linear.

Findings

The empirical results show that the unemployment hysteresis hypothesis is valid for the majority of transition economies, including Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, the Kyrgyz Republic, Latvia, Lithuania, Poland, Romania and Slovenia. However, the results strongly reject the null hypothesis of unemployment hysteresis for the Kazakhstan and the Slovak Republics.

Originality/value

This study revealed that, for countries in transition, advanced unit root tests exhibit greater validity when compared to standard tests

Details

Applied Economic Analysis, vol. 28 no. 84
Type: Research Article
ISSN: 2632-7627

Keywords

Open Access
Article
Publication date: 11 October 2021

Saban Nazlioglu, Mehmet Altuntas, Emre Kilic and Ilhan Kucukkkaplan

This paper aims to test purchasing power parity (PPP) hypothesis for Greece, Italy, Ireland, Portugal and Spain, which are known as the GIIPS countries.

1690

Abstract

Purpose

This paper aims to test purchasing power parity (PPP) hypothesis for Greece, Italy, Ireland, Portugal and Spain, which are known as the GIIPS countries.

Design/methodology/approach

The authors conduct a comprehensive analysis by using unit root approaches without and with structural breaks and non-linearity.

Findings

The PPP is valid for the GIIPS countries. Considering structural breaks in non-linear framework plays a crucial role.

Originality/value

There is no empirical study testing PPP hypothesis by focusing on the GIIPS countries. This study further takes into account for structural breaks and non-linearity in the real exchange rates of these countries.

Details

Applied Economic Analysis, vol. 30 no. 90
Type: Research Article
ISSN: 2632-7627

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

1 – 10 of 138