scholarly journals On the long-run dynamics of income and wealth inequality

Author(s):  
Atanu Ghoshray ◽  
Issam Malki ◽  
Javier Ordóñez

AbstractWe analyse top income and wealth shares data, by conducting a robust estimation of trends, tests for structural breaks, and tests for determining persistence. We include Anglo-Saxon countries, continental Europe and Asian countries, grouped under different percentiles and deciles, spanning a period that is at least close to a century. We find that the top income shares for almost all countries are characterised by broken trends, or level shifts. The preponderance of trend breaks appears in the 1970s and 1980s where after a negative trend changes in magnitude or direction. Finally, shocks to the top income share data are not transitory, which have consequences for policy such as advocating redistributive measures.

2012 ◽  
Vol 29 (2) ◽  
pp. 133-143 ◽  
Author(s):  
Mohsen Bahmani‐Oskooee ◽  
Hanafiah Harvey

PurposeThe purpose of this paper is to investigate the sensitivity of Indonesia's inpayments and outpayments to currency depreciation on a bilateral basis.Design/methodology/approachThe methodology used is based on the bounds testing approach.FindingsIt is found that while real depreciation of Rupiah has short‐run effects in a majority of the cases, these effects last into the long‐term in almost 50 percent of the cases. Surprisingly, almost all of the affected partners in the long run are found to be the Asian countries.Originality/valueThe paper is very original in that no one has looked at this issue before.


2019 ◽  
Vol 9 (1) ◽  
pp. 275-292
Author(s):  
Mukhtar Danladi Galadima ◽  
Abubakar Wambai Aminu

This paper analyzed the issue of structural breaks in natural gas consumption and economic growth in Nigeria. The newly residual augmented least squares (RALS-LM) unit root test with breaks also known as “RALS-LM test with trend breaks and non-normal errors” proposed by Meng-Lee-Payne (2017) and the new structural breaks testing proposed by Kejriwal–Perron (2010) are among the tools used for the investi-gation. Our empirical findings provide significant evidence that the series of natural gas consumption and economic growth are stationary with one or two trend breaks. Furthermore, the investigation identified significant incidences of structural breaks in the relationship between natural gas consumption and economic growth in 1990, 2004, 2009 and all the break dates were found to be significant. The evaluation of the sub-sample periods based on the break dates revealed that the first and second breaks are potential while the last is destructive. Moreover, the estimate of the long-run elasticity is significant where a 1% increase in natural gas consumption induces the growth of Nigerian economy by 0.15% and all the dummies that represent the breakpoints are also significant where the 2004 break had a bigger effect among other breaks. The implication of the results is that shocks in the series of natural gas consumption and economic growth in Nigeria have transitory effect, modeling the relationship between natural gas consumption and economic growth in Nigeria without taking structural breaks into consideration could produce biased and unreliable statistical results, and there is economically significant dependence of the Nigerian economy on natural gas consumption.


2020 ◽  
Vol 19 (4) ◽  
pp. 377-392
Author(s):  
Bilal Mehmood ◽  
Saddam Ilyas ◽  
Muhammad Aleem

Abstract During times when terrorism is eroding almost all industries of victim economies, tourism industry is thought to be much prone to it. This paper investigates the long run relationship between terrorism and tourism for South Asian and African countries separately, allowing us to compare the results of the two regions. Long run relationship is analyzed via dynamic panel techniques (PMG, MG and DFE) on data for 22 African and 6 South Asian countries from 1991 to 2013. These panel cointegration techniques quantify the long-run relationship between terrorism and tourism. Terrorism has been found detrimental for tourism industry both in Africa and South Asia. Empirical findings affirm that terrorism has a long-run negative impact on tourism in both regions. Recommendations, on the basis of findings are proposed at the end.


2020 ◽  
Vol 6 (3) ◽  
pp. 180-191
Author(s):  
Kavitha Chandrasekaran

Background:: In the long run, synthetic tints were found to be harmful to the chemicals. As a result natural tints have come to be used for their many intrinsic values. The main reason being, then availability of local plants as the main source of natural colorants. Their easy availability in the country being zero cost – effective and planted for other purposes are the main reasons for utilizing them as natural tints. Almost all the parts of the plants, namely stem, leaves, fruits, seeds, barks etc. are used for extracting natural colour. In addition, they are antimicrobial antifungal, insect – repellant deodorant, disinfectant having medicinal values. Methods:: Sweet Indrajao leaves were cleaned by washing with water and dried under direct sunlight and ground as fine powder. A fine strainer was used to remove the wastages. After all these processes, 1-kilogram leaves weighed 318 grams. Then, it is put in 75% ethanol 25% water and heated in a breaker which in kept over a water bath for 2 hours. After this, the contents were filtered and kept in a separate beaker. Bleached fleece draperies stained with stain extract were made to become wet and put into different stain baths which contain the required amount of stain extract and water. Acetic acid was added to it after 20 minutes. The fleece drapery was stained for about one hour at 60oC. The draperies thus stained were removed, squeezed, and put to treatment with metal salts without washing. Different metal salts were used for the treatment using 3% of any one of the chemical mordants like alum, stannous chloride, potassium dichromate, ferrous sulphate, nickel sulphate, copper sulphate and natural mordants such as myrobolan, turmeric, cow dung, Banana sap juice at 60oC for 30 minutes with MLR of 1:30. The stained draperies were washed repeatedly in all the three methods in water and dried in air. At last, the stained draperies were put to soap with soap solution at 60oC for 10 minutes. The draperies were repeatedly washed in water and dried under the sun. Results:: Sweet Indrajao leaves discharged colour easily in alcoholic water. The fleece draperies were stained with chemical and natural mordants. It was observed that the stain uptake was found to be good in post-mordanting method. Ultrasonication has clearly improved the stainability of the draperies at pH 3 and 3.5 values. The pH decreases the stain ability under both Conventional and Ultrasonic conditions. The colour strength increases with an increase in staining temperature in both cases of US and CH methods. Conclusion:: Sweet Indrajao.L has been found to have good ultrasonic potential as a stain plant. The stain uptake as well as the fastness properties of the fleece drapery were found to enhance when metal mordant was used in conjugation with ultra-sonication for the extract of Sweet Indrajao. It was also found that the enhancement of staining ability was better without mordant draperies. The dye extract showed good antibacterial activity against the three bacterial pathogens. Among the three bacterial pathogens, dye extract showed more effective against Escherichia coli pathogens and dye extract showed more effective against Aspergillus pathogens. Hence, the ultrasonic method of drapery staining may be appropriate and beneficial for society at large in future.


2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Alexander Schmidt ◽  
Karsten Schweikert

Abstract In this paper, we propose a new approach to model structural change in cointegrating regressions using penalized regression techniques. First, we consider a setting with known breakpoint candidates and show that a modified adaptive lasso estimator can consistently estimate structural breaks in the intercept and slope coefficient of a cointegrating regression. Second, we extend our approach to a diverging number of breakpoint candidates and provide simulation evidence that timing and magnitude of structural breaks are consistently estimated. Third, we use the adaptive lasso estimation to design new tests for cointegration in the presence of multiple structural breaks, derive the asymptotic distribution of our test statistics and show that the proposed tests have power against the null of no cointegration. Finally, we use our new methodology to study the effects of structural breaks on the long-run PPP relationship.


2021 ◽  
Vol 14 (7) ◽  
pp. 319
Author(s):  
Hany Fahmy

The Prebisch-Singer (PS) hypothesis, which postulates the presence of a downward secular trend in the price of primary commodities relative to manufacturers, remains at the core of a continuing debate among international trade economists. The reason is that the results of testing the PS hypothesis depend on the starting point of the technical analysis, i.e., stationarity, nonlinearity, and the existence of structural breaks. The objective of this paper is to appraise the PS hypothesis in the short- and long-run by employing a novel multiresolution wavelets decomposition to a unique data set of commodity prices. The paper also seeks to assess the impact of the terms of trade (also known as Incoterms) on the test results. The analysis reveals that the PS hypothesis is not supported in the long run for the aggregate commodity price index and for most of the individual commodity price series forming it. Furthermore, in addition to the starting point of the analysis, the results show that the PS test depends on the term of trade classification of commodity prices. These findings are of particular significance to international trade regulators and policymakers of developing economies that depend mainly on primary commodities in their exports.


Author(s):  
Cher Chen ◽  
GholamReza Zandi Pour ◽  
Edwin R. de Los Reyes

This study aimed to evaluate the association of financial development and economic growth by considering the case of 10 Asian countries. The study used quantitative research design where the preliminary testing was conducted using descriptive statistics and unit root testing. The sample size comprised of 10 emerging Asian countries (India, China, Malaysia, Philippines, Pakistan, Thailand, Singapore, Bhutan, Vietnam, and Bangladesh) and the time-frame for the study was 1990 to 2018. The main techniques of analysis were Pedroni cointegration, dynamic panel least squares (DOLS) and Granger Causality. This study concluded that long-run equilibrium existed between financial development and economic growth. The research was limited to the case of Asian countries, therefore, in future, the evaluation of European countries can be conducted or African region can also be undertaken into consideration.


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