Jobless Recovery and Structural Change: A VAR Approach

2017 ◽  
Vol 6 (1) ◽  
pp. 1-26
Author(s):  
Li-Hsueh Chen ◽  
Zhen Cui
Keyword(s):  
Structural Change ◽  
Vector Autoregression ◽  
Error Variance ◽  
Jel Classification ◽  
Reduced Form ◽  
Impulse Responses ◽  
Jobless Recoveries ◽  
Employment Fluctuations ◽  
Negative Effect ◽  
Jobless Recovery

This study uses a vector autoregression approach to examine the link between jobless recoveries and the fast employment expansion in finance, health and education (FHE) sectors. Both reduced-form estimates and impulse responses indicate a negative effect of the expansion on aggregate employment. While the expansion Granger causes aggregate employment fluctuations, up to 40 per cent of the error variance of those fluctuations can be explained by innovations in the expansion. Moreover, movements in aggregate employment are reduced by 25 per cent when the expansion is accounted for. Therefore, the fast expansion of the FHE sectors is shown to have notably contributed to the onset of jobless recoveries. JEL Classification: E24, E32, C32

scholarly journals The Corn-Egg Price Transmission Mechanism

1990 ◽  
Vol 22 (2) ◽  
pp. 79-86 ◽  
Author(s):  
Ronald A. Babula ◽  
David A. Bessler
Keyword(s):  
Vector Autoregression ◽  
Forecast Error ◽  
Error Variance ◽  
Price Increase ◽  
Transmission Mechanism ◽  
Price Transmission ◽  
Var Model ◽  
Impulse Responses ◽  
Price Shocks ◽  
Forecast Error Variance

Abstract A vector autoregression (VAR) model of corn, farm egg, and retail egg prices is estimated and shocked with a corn price increase. Impulse responses in egg prices, t-statistics for the impulse responses, and decompositions of forecast error variance are presented. Analyses of results provide insights on the corn/egg price transmission mechanism and on how corn price shocks pulsate through the egg-related economy.

Productivity Growth, Structural Change and Informality: The Case of Russia

2015 ◽  
pp. 30-61 ◽  
Author(s):  
I. Voskoboynikov ◽  
V. Gimpelson
Keyword(s):  
Structural Change ◽  
Productivity Growth ◽  
Labour Productivity ◽  
Alternative Methods ◽  
Industry Effects ◽  
Labour Productivity Growth ◽  
Russian Economy ◽  
Negative Effect ◽  
Total Labour

This study considers the influence of structural change on aggregate labour productivity growth of the Russian economy. The term "structural change" refers to labour reallocation both between industries and between formal and informal segments within an industry. Using Russia KLEMS and official Rosstat data we decompose aggregate labour productivity growth into intra-industry (within) and between industry effects with four alternative methods of the shift-share analysis. All methods provide consistent results and demonstrate that total labour reallocation has been growth enhancing though the informality expansion has had a negative effect. As our study suggests, it is caused by growing variation in productivity levels across industries.

Financial Integrational Effects on Macroeconomic Instability in India

2017 ◽  
Vol 11 (2) ◽  
pp. 143-166
Author(s):  
Niranjan R.
Keyword(s):  
Financial Development ◽  
Financial Integration ◽  
Trade Openness ◽  
Jel Classification ◽  
Financial Openness ◽  
Vector Error Correction ◽  
Vector Error ◽  
International Financial Integration ◽  
Macroeconomic Instability ◽  
Negative Effect

The nexus between international financial integration and economic growth continues to be one of the most debated issues among macroeconomists, and these debates often raise several issues from the theoretical and policy perspectives. Financial integration can catalyse financial development, improve governance and impose discipline on macro-policies. However, in the absence of a basic pre-existing level of supporting conditions, financial integration can aggravate instability (Khadraoui, 2010). In addition, economic theory suggests that increased financial openness intensifies macroeconomic instability. This article investigates the financial integrational effects on macroeconomic instability in terms of output, consumption and investment volatility by employing the vector error correction model (VECM) with empirically reasonably parameters for an emerging economy, India, for the period 1989–2014. From the results, it is evident that financial openness has had a significant effect on output, consumption and investment volatility. Financial development has had a statistically significant negative effect on output, consumption and investment volatility. Similarly, trade openness and terms of trade significantly influence output, consumption and investment volatility. JEL Classification: F36, F41, F43, E32

The Effect of Parental Migration on the Educational Attainment of Their Left-Behind Children in Rural China

2014 ◽  
Vol 14 (3) ◽  
pp. 1037-1080 ◽  
Author(s):  
Sophie Xuefei Wang
Keyword(s):  
Theoretical Model ◽  
Educational Attainment ◽  
Instrumental Variables ◽  
Rural China ◽  
Probit Model ◽  
School Enrollment ◽  
Reduced Form ◽  
Parental Migration ◽  
Left Behind ◽  
Negative Effect

Abstract About 60 million children under the age of 18 are left behind by their parents in rural China. This paper studies the effect of migrant parents on the educational attainment of their left-behind children in rural China. A theoretical model of optimal schooling in the context of parental migration is proposed. Then, reduced-form equations are estimated using probit model, instrumental variables probit model, and linear instrumental variables model. Results show that parental migration has a negative effect on children’s school enrollment. This negative effect is significant and sizable on the school enrollment of boys, but insignificant on the school enrollment of girls. The most important source of this robust negative effect on boys is the absence of fathers. Results suggest that left-behind mothers or relatives cannot fulfill fathers’ role successfully in disciplining boys and help with their educational needs.

scholarly journals Examining the Mediation of Job Satisfaction in the Relationship between Work Stress and Turnover Intention in Textile Company

2020 ◽  
Vol 5 (2) ◽  
pp. 113-121
Author(s):  
Romat Saragih ◽  
Arif Partono Prasetio ◽  
Bachruddin Saleh Luturlean
Keyword(s):  
Job Satisfaction ◽  
Work Stress ◽  
Turnover Intention ◽  
Sampling Method ◽  
Sampling Technique ◽  
Jel Classification ◽  
Positive Direction ◽  
Negative Effect ◽  
The Relationship

Objective – This study investigates the mediation role of job satisfaction in the relationship between work stress and turnover intention. A study about turnover intention in the textile company is still rarely done in Indonesia. This study can fill the gap regarding the topic. Methodology/Technique – A nonprobability sampling method with an accidental sampling technique was used, and we get 110 usable responses from a textile company in West Java, Indonesia. Macro Process with SPSS was used to measure the regression and the mediation. Findings – The study found that work stress has a negative effect on job satisfaction. Work stress significantly related to turnover intention in a positive direction. Job satisfaction did not have a significant relation with turnover intention. Thus, in this study, we found no mediation role in job satisfaction. Novelty – Evidently, work stress solely took part in shaping the turnover intention. Type of Paper: Empirical. Keywords: Work stress, Job satisfaction, Turnover intention, Textile Company, Mediation Reference to this paper should be made as follows: Saragih, R; Prasetio, A.P; Luturlean, B.S. 2020. Examining the Mediation of Job Satisfaction in the Relationship between Work Stress and Turnover Intention in Textile Company, J. Mgt. Mkt. Review 5(2) 113 – 121. https://doi.org/10.35609/jmmr.2020.5.2(4) JEL Classification: J28, J29, M19.

Corporate Governance, State Ownership and Firm Performance: An Empirical Study of State-Owned Enterprises in Indonesia

2018 ◽  
Vol 3 (1) ◽  
pp. 26-32
Author(s):  
Chermian Eforis
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Agency Cost ◽  
Positive Influence ◽  
Jel Classification ◽  
State Ownership ◽  
Company Performance ◽  
Return On Assets ◽  
Good Corporate Governance ◽  
Negative Effect

Objective - The purpose of this research is to determine the effect of good corporate governance (GCG) on Indonesia's SOEs and the influence of state ownership on company performance. Methodology/Technique - This study examines State Owned Enterprises in Indonesia that were listed on the Indonesia Stock Exchange between 2011 and 2015. Findings - The empirical results show that GCG and state ownership both have a positive influence on the company's financial performance (in this case, Return On Assets). However, the percentage of state ownership has a negative effect on the relationship between Good Corporate Governance and Return On Assets. Novelty - One agency cost is monitoring expenditure by the principal. Privatization is one way to improve the performance of SOEs. Privatization is believed to improve the performance of SOEs, as a result of increased supervision of the performance of SOEs in Indonesia. Type of Paper: Empirical Keywords: State Owned Enterprises; Good Corporate Governance; State Ownership; Return On Assets; Indonesia. JEL Classification: G32, H70, G34.

Slowdown in Bank Credit Growth: Aggregate Demand or Bank Non-performing Assets?

2018 ◽  
Vol 12 (3) ◽  
pp. 257-275 ◽  
Author(s):  
Ashima Goyal ◽  
Akhilesh Verma
Keyword(s):  
Interest Rates ◽  
Aggregate Demand ◽  
Balance Sheet ◽  
Bank Lending ◽  
Jel Classification ◽  
Capital Adequacy ◽  
Credit Growth ◽  
Bank Ownership ◽  
Negative Effect ◽  
Asset Quality

We estimate the determinants of credit and of non-performing assets (NPAs) using a firm and a bank panel with data up to 2015 in order to test bank lending against the aggregate demand channel as an explanation for slow Indian credit growth. The results support demand as the key constraint. Only demand variables affect corporate credit for a broad set of firms. Balance sheet weakness reduced credit only for a narrow subset of indebted firms in a difference-in-difference type analysis. Even so, sales remained the dominant variable. From the bank panel, the asset quality review (AQR) did have a strong negative effect on advances but gross NPAs did not. While high interest rates and low growth raised NPAs, so did past credit. Low demand not only reduced credit, it also increased NPAs. That the capital adequacy ratio (CAR) significantly reduces NPAs points to the productivity of fund infusion. When other determinants are controlled, bank ownership does not affect NPA ratios, again supporting external shocks as causal. The results suggest that apart from structural reform to clean balance sheets, recovery of demand is necessary for revival of credit growth. JEL Classification: G21, E51

THE PRICE PUZZLE AND VAR IDENTIFICATION

2014 ◽  
Vol 19 (8) ◽  
pp. 1880-1887 ◽  
Author(s):  
Arturo Estrella
Keyword(s):  
Monetary Policy ◽  
Impulse Response ◽  
Response Function ◽  
Impulse Response Function ◽  
Reduced Form ◽  
Impulse Responses ◽  
Minimal Set ◽  
Price Puzzle ◽  
Single Term ◽  
Structural Vars

In structural VARs, unexpected monetary tightening often leads to the price puzzle, a counterintuitive increase in inflation in the impulse response function. The identification of impulse responses requires at least a minimal set of structural assumptions, and models exhibiting the price puzzle typically use standard assumptions focusing mainly on relationships among contemporaneous disturbances. This note uses a well-established stylized fact, the long lags of monetary policy, to motivate a simple additional identifying assumption. The assumption eliminates a single term in one equation of the reduced form, and with it the price puzzle.

scholarly journals Market Integration: Case Studies of Structural Change

2005 ◽  
Vol 34 (2) ◽  
pp. 163-172 ◽  
Author(s):  
Jason R.V. Franken ◽  
Joe L. Parcell ◽  
Michael E. Sykuta ◽  
Christopher L. Fulcher
Keyword(s):  
Structural Change ◽  
Error Correction ◽  
Case Studies ◽  
Market Integration ◽  
Vector Autoregression ◽  
Value Added ◽  
Start Up ◽  
Oilseed Industry

The grain/oilseed industry is undergoing considerable structural change through mergers and new value-added businesses, which raises price-related questions. We analyze the level of price integration prior to and following a merger between two grain firms and the start-up of a producer-owned ethanol facility. This research utilizes error correction vector autoregression analysis to compute market integration structural change effects. We find evidence that market integration initially increases with the merger, but deteriorates with time following the merger. We find no significant localized change in the level of price integration for the case of a new value-added business.

Modeling the Dynamics of the Hong Kong Office Market under Economic Structural Change

10.1068/b3198 ◽  
2005 ◽  
Vol 32 (1) ◽  
pp. 111-125 ◽  
Author(s):  
Winky K O Ho
Keyword(s):  
Hong Kong ◽  
Structural Change ◽  
Reduced Form ◽  
Adjustment Mechanism ◽  
Office Space ◽  
Office Market ◽  
Office Employment ◽  
Office Rent ◽  
The One ◽  
Shed Light

The author adopts reduced-form equilibrium models to investigate the relations among vacancy, employment, space consumption, and rent in the Hong Kong office market under economic structural change. The models are estimated with the aid of data from Hong Kong during the period 1980–2002—a total of twenty-three yearly observations. It is hoped that empirical results will shed light on the adjustment mechanism of the local office market. In line with the existing literature, the author shows that, on the one hand, office rent is positively related to office employment, but inversely related to office stock. On the other hand, the demand for office space is inversely related to rent, but positively related to office employment. Moreover, the elasticity of space consumption with respect to rent is estimated to be inelastic. Historical simulations of the model are performed, and it is suggested that the equations simulate reasonably well as indicated by Theil's inequality.

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