WARMING AND INCOME GROWTH IN THE UNITED STATES: A HETEROGENEOUS, COMMON FACTOR DYNAMIC PANEL ANALYSIS

2018 ◽  
Vol 09 (04) ◽  
pp. 1850012
Author(s):  
BRANTLEY LIDDLE
Keyword(s):  
Common Factor ◽  
The United States ◽  
Cross Sectional ◽  
Temperature Changes ◽  
Panel Methods ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Cooling Degree Days ◽  
Cross Sectional Dependence

This paper analyzes whether temperature changes influence economic growth in the contiguous 48 US states by employing panel methods that address both heterogeneity and cross-sectional dependence. Ultimately, it is determined that the negative effect of warming (initially proxied by cooling degree days) is restricted to agriculture GDP. But when weathers’ impact was measured by average summer temperature, the negative effect — still mostly restricted to agriculture GDP — was substantially and significantly larger (a finding similar to previous work) and geographically uniform. Yet, the model’s dynamics suggested that the magnitude of the short-run impact was larger (in absolute terms) than the long-run impact.

ELECTRICITY CONSUMPTION, TRADE OPENNESS AND ECONOMIC GROWTH IN DEVELOPING COUNTRIES: A DISAGGREGATED APPROACH

2021 ◽  
pp. 1-28
Author(s):  
KIZITO UYI EHIGIAMUSOE ◽  
SIKIRU JIMOH BABALOLA
Keyword(s):  
Economic Growth ◽  
Trade Openness ◽  
Electricity Consumption ◽  
Impulse Response Functions ◽  
African Countries ◽  
Cross Sectional ◽  
Long Run ◽  
Short Run ◽  
Cross Sectional Dependence ◽  
Trade And Growth

This study examines the relationship between electricity consumption, trade openness and economic growth in 25 African countries during 1980–2016. It disaggregates electricity into renewable and non-renewable and disaggregates trade into exports and imports. It employs cointegration and Granger causality techniques that enable us to determine both joint and individual causality, as well as account for individual heterogeneity and cross-sectional dependence. It also uses the variance decompositions (VDs) and impulse response functions (IRFs). This study shows a short-run and long-run joint causality from electricity and trade to growth, as well as a short-run and long-run joint causality from trade and growth to electricity. Besides, the Dumitrescu–Hurlin Granger non-causality technique shows a bidirectional causality between electricity and growth and between trade and growth but a unidirectional causality from electricity to trade. It also reveals the causal relationships from exports, imports, renewable and non-renewable electricity to growth. This study implies that electricity consumption and trade openness stimulate growth, while the latter also determines electricity consumption and trade openness. Based on the findings, we recommend some policy options.

scholarly journals Heterogeneous Analysis of Pollution Abatement via Renewable and Non-Renewable Energy: Lessons from Investment in G20 Nations

2021 ◽  
Author(s):  
Kazeem Bello Ajide ◽  
Ekundayo Peter Mesagan
Keyword(s):  
Renewable Energy ◽  
Carbon Emissions ◽  
Capital Investment ◽  
Pollution Abatement ◽  
Jel Classification ◽  
Cross Sectional ◽  
Pooled Mean Group ◽  
Long Run ◽  
Short Run ◽  
Cross Sectional Dependence

Abstract This study analyses the role of renewable and non-renewable energy in pollution reduction through the capital investment channel in G20 economies between 1990 and 2017. We consider cross-sectional dependence since the countries are heterogeneous and cross-sectionally dependent using the pooled mean group approach. Findings reveal that renewable energy negatively impacts carbon emissions in both the short- and long-run, while non-renewable energy positively affects carbon emissions in both the short- and long-run. Again, results show that capital investment lowers pollution in the short-run but increases it in the long-run. Lastly, we find that capital investment interacts with renewable energy to reduce pollution in both short- and long-run, while its interaction with non-renewable energy expands pollution in both short- and long-run. We, therefore, conclude that capital investment provides an important channel to reduce pollution in G20 nations and recommend that if energy consumption is to work through the capital investment channel to lower pollution in the G20, the proportion of renewable energy must increase relative to non-renewable energy in their energy mix.JEL Classification: Q41; Q42; Q53; F23; O50.

Does Clientelism Affect Income Inequality? Evidence from Panel Data

2018 ◽  
pp. 1-24
Author(s):  
Ebney Ayaj Rana ◽  
Mustafa Kamal
Keyword(s):  
Panel Data ◽  
Income Inequality ◽  
Management Strategies ◽  
Political Regime ◽  
Cross Sectional ◽  
Fiscal Management ◽  
Long Run ◽  
Negative Effect ◽  
Cross Sectional Dependence ◽  
The Relationship

This paper studies the determinants of income inequality in a panel of countries to provide empirical evidence to the relationship between income inequality and clientelism. Using different panel data techniques, especially group mean fully modified OLS estimator, and also allowing for control variables, cross-sectional heterogeneity and cross-sectional dependence, we find that in the long run, clientelism exerts a significant negative effect on income equality. The overall results of the study have implications for fiscal management strategies and political regime choice.

scholarly journals Wind Energy And CO2 Emissions: AMG Estimations For Selected Countries

2021 ◽  
Author(s):  
Taner Güney ◽  
Emrah Üstündağ
Keyword(s):  
Energy Consumption ◽  
Wind Energy ◽  
Carbon Emissions ◽  
Cross Sectional ◽  
Long Run ◽  
Negative Effect ◽  
Cross Sectional Dependence ◽  
The Relationship ◽  
Positive Effect

Abstract This study aims to analyze the relationship between wind energy consumption, coal energy consumption, globalization, economic growth and carbon emissions in a selected country group. This analysis was made with the data of 37 countries for the period 2000-2019. In order to examine the long-term relationship between the variables, the AMG method, which makes an estimation by considering the cross-sectional dependence and slope homogeneity, was used in the study. According to the long-term coefficient estimates of the cointegrated variables, wind energy consumption has a statistically significant and negative effect on carbon emissions in the long run. A 1% increase in wind energy consumption reduces carbon emissions by 0.018%. On the other hand, the globalization variable has a statistically significant and positive effect on carbon emissions in the long run. A 1% increase in globalization increases carbon emissions by 0.107%. These findings show the importance of wind energy consumption in reducing carbon emissions. For this reason, policies should be produced to increase wind energy consumption globally and necessary incentives should be provided.

scholarly journals Short-Term and Long-Term Effect of Firms’ IPO on Competitors’ Performance

2020 ◽  
Vol 2 (1) ◽  
pp. 1-1
Author(s):  
Nadia Marcha Chintya ◽  
Nadya Theodora ◽  
Vania Evelyn ◽  
Adrian Teja
Keyword(s):  
Stock Returns ◽  
Initial Public Offering ◽  
Long Term Effects ◽  
Short Term ◽  
Cross Sectional ◽  
Stock Performance ◽  
Long Run ◽  
Negative Effect ◽  
Short Run

This study provides empirical evidence on the short term and the long term effects of initial public offering (IPOs) by firms, on their competitor firms’ performance in Indonesia. We perform short-run and long-run event studies and cross sectional regressions over the period 2010 to 2017 and find that both IPO firms and their competitors experience positive stock returns in the short-run and in the long-run. We find that IPO firms’ stock performance is relatively stable in the long-run that enables the competitor firms’ stock returns to catch up with IPO firms’ stock performance. We find negative effect of IPO firms’ stock performance on their competitors’ stock performance in the short-run, and a positive effect in the long-run. Our findings imply that IPO firms provide good information to the industry and no obvious competitive landscape changes are observed.

The Impact of Monetary and Fiscal Policies on the Stock Market in the United States (U.S); Evidence from Linear ARDL Framework

2020 ◽  
Vol 11 (1) ◽  
pp. 132-132
Author(s):  
Aref Emamian
Keyword(s):  
United States ◽  
Stock Market ◽  
The United States ◽  
Real Effective Exchange Rate ◽  
Annual Data ◽  
Fiscal Policies ◽  
Long Run ◽  
The Us ◽  
Short Run ◽  
The Impact

This study examines the impact of monetary and fiscal policies on the stock market in the United States (US), were used. By employing the method of Autoregressive Distributed Lags (ARDL) developed by Pesaran et al. (2001). Annual data from the Federal Reserve, World Bank, and International Monetary Fund, from 1986 to 2017 pertaining to the American economy, the results show that both policies play a significant role in the stock market. We find a significant positive effect of real Gross Domestic Product and the interest rate on the US stock market in the long run and significant negative relationship effect of Consumer Price Index (CPI) and broad money on the US stock market both in the short run and long run. On the other hand, this study only could support the significant positive impact of tax revenue and significant negative impact of real effective exchange rate on the US stock market in the short run while in the long run are insignificant. Keywords: ARDL, monetary policy, fiscal policy, stock market, United States

scholarly journals Dynamic Integrated Model for Assessing Fisheries: Discard Bans as an Implicit Value-Added Tax

2021 ◽  
Author(s):  
Jose Maria Da Rocha ◽  
Javier García-Cutrín ◽  
Maria-Jose Gutiérrez ◽  
Raul Prellezo ◽  
Eduardo Sanchez
Keyword(s):  
Value Added ◽  
Point Of View ◽  
Value Added Tax ◽  
Biological Variables ◽  
A Value ◽  
Long Run ◽  
The Social ◽  
Negative Effect ◽  
Short Run ◽  
The Impact

AbstractIntegrated economic models have become popular for assessing climate change. In this paper we show how these methods can be used to assess the impact of a discard ban in a fishery. We state that a discard ban can be understood as a confiscatory tax equivalent to a value-added tax. Under this framework, we show that a discard ban improves the sustainability of the fishery in the short run and increases economic welfare in the long run. In particular, we show that consumption, capital and wages show an initial decrease just after the implementation of the discard ban then recover after some periods to reach their steady-sate values, which are 16–20% higher than the initial values, depending on the valuation of the landed discards. The discard ban also improves biological variables, increasing landings by 14% and reducing discards by 29% on the initial figures. These patterns highlight the two channels through which discard bans affect a fishery: the tax channel, which shows that the confiscation of landed discards reduces the incentive to invest in the fishery; and the productivity channel, which increases the abundance of the stock. Thus, during the first few years after the implementation of a discard ban, the negative effect from the tax channel dominates the positive effect from the productivity channel, because the stock needs time to recover. Once stock abundance improves, the productivity channel dominates the tax channel and the economic variables rise above their initial levels. Our results also show that a landed discards valorisation policy is optimal from the social welfare point of view provided that incentives to increase discards are not created.

What Goes Up Might Not Come Down: Modeling Directional Asymmetry with Large-N, Large-T Data

2021 ◽  
pp. 008117502110463
Author(s):  
Ryan P. Thombs ◽  
Xiaorui Huang ◽  
Jared Berry Fitzgerald
Keyword(s):  
Fixed Effects ◽  
Directional Asymmetry ◽  
Cross Sectional ◽  
Monte Carlo Experiments ◽  
Long Run ◽  
Large N ◽  
Fixed Effects Estimator ◽  
Cross Sectional Dependence ◽  
Using Data ◽  
Heterogeneous Panel

Modeling asymmetric relationships is an emerging subject of interest among sociologists. York and Light advanced a method to estimate asymmetric models with panel data, which was further developed by Allison. However, little attention has been given to the large- N, large- T case, wherein autoregression, slope heterogeneity, and cross-sectional dependence are important issues to consider. The authors fill this gap by conducting Monte Carlo experiments comparing the bias and power of the fixed-effects estimator to a set of heterogeneous panel estimators. The authors find that dynamic misspecification can produce substantial biases in the coefficients. Furthermore, even when the dynamics are correctly specified, the fixed-effects estimator will produce inconsistent and unstable estimates of the long-run effects in the presence of slope heterogeneity. The authors demonstrate these findings by testing for directional asymmetry in the economic development–CO2 emissions relationship, a key question in macro sociology, using data for 66 countries from 1971 to 2015. The authors conclude with a set of methodological recommendations on modeling directional asymmetry.

scholarly journals INFLASI DARI SUDUT PANDANG MONETER DAN FISKAL (STUDI KASUS SUMATERA BARAT)

2019 ◽  
Vol 1 (1) ◽  
pp. 131
Author(s):  
Zul Azhar ◽  
Alpon Satrianto ◽  
Nofitasari Nofitasari
Keyword(s):  
Interest Rate ◽  
Money Supply ◽  
Government Spending ◽  
Descriptive Research ◽  
Distributed Lag ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
The Interest Rate ◽  
Positive Effect

This study aims to analyze the effect of money supply M2, interest rate, government spending and local tax on the inflation in West Sumatera. This type of research is descriptive research and secondary datain the form of time-series from quartely 1 2007 to 2017 quartely 4 using the method of Autoregresive Distributed Lag analysis. The results of this study indicate that money supply in the long run have a significant and positive effect on inflation West Sumatera. In the short run  and long run the interest rate has a significant and positive effect on inflation in West Sumatera. Government spending in the Long run has a significant and negative effect on inflation in West Sumatera. Based on the result of this study can be concluded that there is inflation in West Sumatera is monetery of phenomenon in the long run. 

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