scholarly journals Demand Elasticities for Mobile Telecommunications in Austria

2008 ◽  
Vol 228 (1) ◽  
Author(s):  
Ralf Dewenter ◽  
Justus Haucap
Keyword(s):  
Dynamic Panel Data ◽  
Demand Elasticity ◽  
Mobile Telecommunications ◽  
Elasticity Of Demand ◽  
Demand Elasticities ◽  
Long Run ◽  
Short Run ◽  
Telecommunications Services ◽  
Using Data ◽  
Business Customers

SummaryThis paper analyses price elasticities in the Austrian market for mobile telecommunications services using data on firm specific tariffs in the period between January 1998 and March 2002. As a novelty compared to existing studies dynamic panel data regressions are used to estimate short-run and long-run demand elasticities for business customers and for private consumers with both postpaid contracts and prepaid cards.We find that business customers have a higher elasticity of demand than private consumers, where postpaid customers tend to have a higher demand elasticity than prepaid customers. Also demand is as expected more elastic in the long run. In addition, the paper also provides estimates for firm-specific demand elasticities which range from -0.47 to -1.1.

Empirical Analysis of Long-Run Elasticities and Asymmetric Effects of Transit Demand Determinants

2020 ◽  
Vol 2674 (8) ◽  
pp. 274-284
Author(s):  
Lisa Li ◽  
Dena Kasraian ◽  
Amer Shalaby
Keyword(s):  
Policy Making ◽  
Demand Elasticity ◽  
Transit Planning ◽  
Dynamic Panel Model ◽  
Transit Service ◽  
Demand Elasticities ◽  
Transit Ridership ◽  
Long Run ◽  
Short Run ◽  
Transit Agencies

The effects of transit ridership determinants can be quantified as demand elasticities which are often used to inform transit planning and policy making. This study seeks to determine the impacts of transit service supply, fare, and gas prices on ridership by quantifying the short-run and long-run demand elasticities, as well as test whether transit ridership exhibits an asymmetric response to the rise and fall of these factors using a panel data of 99 Canadian transit agencies over the period of 2002–2016. The results of the dynamic panel model show the effects of transit service and fare to be greater in the long run. The short-run fare elasticity was found to be –0.24 while the long-run elasticity was –1.1. Furthermore, the demand elasticity with respect to service levels was also found to be inelastic (0.28) in the short run but elastic (1.3) in the long run. The cross-elasticity of gas prices was estimated to be 0.17. The existence of asymmetry was analyzed using decomposition techniques to separately estimate the coefficients for the rise and fall in each of the determinants. The equality of these coefficients was tested against each other and it was found that ridership responded more to an increase in transit supply than a decrease. The importance of these results to policy making are then discussed.

Electricity consumption and economic growth in ASEAN

2017 ◽  
Vol 5 (2) ◽  
pp. 16
Author(s):  
Ahmad Ghazali Ismail ◽  
Arlinah Abd Rashid ◽  
Azlina Hanif
Keyword(s):  
Economic Growth ◽  
Energy Use ◽  
Electricity Consumption ◽  
Panel Estimation ◽  
Real Gdp ◽  
Long Run ◽  
Bidirectional Relationship ◽  
Short Run ◽  
Using Data ◽  
The Relationship

The relationship and causality direction between electricity consumption and economic growth is an important issue in the fields of energy economics and policies towards energy use. Extensive literatures has discussed the issue, but the array of findings provides anything but consensus on either the existence of relations or direction of causality between the variables. This study extends research in this area by studying the long-run and causal relations between economic growth, electricity consumption, labour and capital based on the neo-classical one sector aggregate production technology mode using data of electricity consumption and real GDP for ASEAN from the year 1983 to 2012. The analysis is conducted using advanced panel estimation approaches and found no causality in the short run while in the long-run, the results indicate that there are bidirectional relationship among variables. This study provides supplementary evidences of relationship between electricity consumption and economic growth in ASEAN.

Determinants of Treasury-LIBOR Swap Spreads

2005 ◽  
Vol 08 (04) ◽  
pp. 687-705 ◽  
Author(s):  
D. K. Malhotra ◽  
Vivek Bhargava ◽  
Mukesh Chaudhry
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Default Risk ◽  
Yield Curve ◽  
Short Term ◽  
Long Run ◽  
Interest Rate Volatility ◽  
Short Run ◽  
Using Data ◽  
Swap Spreads

Using data from the Treasury versus London Interbank Offer Swap Rates (LIBOR) for October 1987 to June 1998, this paper examines the determinants of swap spreads in the Treasury-LIBOR interest rate swap market. This study hypothesizes Treasury-LIBOR swap spreads as a function of the Treasury rate of comparable maturity, the slope of the yield curve, the volatility of short-term interest rates, a proxy for default risk, and liquidity in the swap market. The study finds that, in the long-run, swap spreads are negatively related to the yield curve slope and liquidity in the swap market. We also find that swap spreads are positively related to the short-term interest rate volatility. In the short-run, swap market's response to higher default risk seems to be higher spread between the bid and offer rates.

scholarly journals Investigating in the J-curve phenomenon in Tunisia- ARDL bound test approach

2020 ◽  
Vol 12 (5(J)) ◽  
pp. 23-32
Author(s):  
Elham Shubaita ◽  
Muhammad Mar’i ◽  
Mehdi Seraj
Keyword(s):  
Trade Balance ◽  
Real Exchange Rates ◽  
Distributed Model ◽  
Long Run ◽  
J Curve ◽  
Short Run ◽  
Using Data ◽  
Bound Test ◽  
The Relationship ◽  
Ardl Bound Test

This paper investigates the relationship between trade balance, real exchange rates, and incomes in Tunisia by adopting the autoregressive distributed model (ARDL) by using data over the period of 1980 to 2018. We also used the bound test cointegration between variables at a 10% significant level. Our findings show that the Tunisia economy does not match the Marshall-Lerner condition in the long run, that provides an accurate description of the particular situation for which a country currency devaluation or depreciation its currency under both fixed or floating regime is predicted to enhance the trade balance of a country, which means there is no j-curve phenomenon in the long run, which tries to differentiate between the change of short-run and long-run effects in the change of exchange rate on the trade balance. Our findings match the Marshall-Lerner condition in the short run and can confirm the existing j-curve in the case of Tunisia.

scholarly journals The Endogenous Money Hypothesis: an Empirical Study of The Saudi Arabia

2015 ◽  
Vol 1 (03) ◽  
Author(s):  
Dr. Saud Almutair
Keyword(s):  
Saudi Arabia ◽  
Money Supply ◽  
Wald Test ◽  
Bank Loans ◽  
Long Run ◽  
Demand Deposit ◽  
Short Run ◽  
Endogenous Money ◽  
Using Data ◽  
Vector Error Correction Models

In this paper, the endogenous money supply hypothesis in Saudi Arabia is examined using data from January 1997 to February 2015. The study uses Johansen cointegration technique and Vector Error Correction models (VECM) for cointegrated series.The long run causality was found to run from bank loans (BL) and from demand deposit (TD) to the money supply (MS1), and not from MS1to BL, as the mainstream view. The endogenios money supply hypothesis is reinforced by the long run causality running from BL to TD. For MS2, the study verifies a long run causality running from BL and TD to MS2. Therefore, the money supply of Saudi Arabia whether using MS1 or MS2 is endogenous in the long run. The result of short run causality with regard of MS1 using Wald Test does not confirm money supply endogeneity in the short run. Short run causality using Granger with regard to MS2 assures short run causality running from TD and BL to MS2. The implication of this work is that Saudi monetary agency can not control the money supply in the long run. It only has some influence on MS1 in the short run.

scholarly journals An Assessment of Energy Consumption and Price Responsiveness: Evidence from Dominican Republic

2015 ◽  
Vol 1 (6) ◽  
pp. 81-87 ◽  
Author(s):  
Jose Antonio Hernandez ◽  
Camilo Koch
Keyword(s):  
Dominican Republic ◽  
Latin American ◽  
Price Volatility ◽  
Electricity Sector ◽  
Linear Regression Method ◽  
Elasticity Of Demand ◽  
Long Run ◽  
Support Price ◽  
Short Run ◽  
Log Linear

Electricity has a high impact in the activities and sectors of any economy. A considerable amount of studies relates the importance of electricity to economic growth of nations. Dominican Republic, though, has been in a process of energy reform, has not yet developed a stable electric delivering. This study is firstly conducted to ensure an overview of the electricity sector of Dominican Republic, describing the energy mix, national electricity situation, and main concerns on the sector reform that have been in process including other Latin American countries. Secondly, the paper aims to determine the elasticity of demand on energy generation sector through log linear regression method; analyzing the variation of price and quantity of demand interaction. Related researches concerning elasticity of demand in other countries such as Australia, Israel, China and United States, shows close similarity to our result, where elasticity tends to be inelastic (0.57) but not perfectly inelastic to variation on price. While the energy market structures by sectors may be complex, customers’ response to pricing signals can promote efficient investment in the long-run term, help mitigate short-run market power by generators and transmission owners, reduce price spikes, low price volatility, and consequently support price mechanism.

scholarly journals THE CO - INTEGRATION ANALYSIS OF EFFECT OF VALUE ADDED TAX AND EXCISE DUTIES ON ECONOMIC GROWTH IN NIGERIA

2021 ◽  
Vol 1 (1) ◽  
pp. 44-53
Author(s):  
ADEGBITE, TAJUDEEN ADEJARE
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Value Added ◽  
Value Added Tax ◽  
Excise Duty ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
Excise Duties ◽  
Integration Analysis

This study examined the co-integration analysis of effect of value added tax and excise duties on economic growth in Nigeria. It also looked at the direction of causality among value added tax excise duty, interest rate, exchange rate and economic growth employing the method of Johansen co-integration and the Granger causality tests using data spanning the period 1994- 2014. Results showed that VAT has positive significant impact on GDP in the short run but has negative impact on GDP in the long run with (  = 1.296417; t=7.41; P>|t|= 0.000) and ( =- 13.38159; z=-3.60 , P>|z|= 0.000) respectively. Also, VAT does not granger cause GDP. Excise duty impacted GDP negatively in the short run but positively in the long run with (=-1.111069; t=-5.16, , P>|t|= 0.000) and ( =37.54469; z = 4.07; P>|z|= 0.000) respectively. It is recommended that, once the value added tax impacted economic growth positively in the shortrun but negative in the long run, government should increase the rate of value added tax in Nigeria, this will in turn boosting the revenue generation in Nigeria. Also, government should increase excise duty on tobacco and alcoholic so as to have positive significant impact on economic growth in the short run.

scholarly journals Fixed Investment and Economic Growth: ARDL and Causality Exploration for SADC Countries

2021 ◽  
Vol 11 (4) ◽  
pp. 18
Author(s):  
Reginald Masimba Mbona ◽  
Chilombo Stephania Mumba ◽  
Tinashe Mangudhla
Keyword(s):  
Economic Growth ◽  
Purchasing Power Parity ◽  
Power Parity ◽  
Fixed Investment ◽  
Economic Activities ◽  
Long Run ◽  
Short Run ◽  
Using Data ◽  
The Cost ◽  
Marginal Returns

In assessing the short run and the long-run effects of fixed investment and economic growth among Southern Africa countries, we evaluated the economic progress of the SADC (Southern African Development Committee) region. Our objective is to determine how variables (GDP, purchasing power parity, inflation, electricity, balance-of-payments, and unemployment) can be affected by the fixed investment. In determining how fixed investment affects economic activities and policies among the states, the ADRL estimation approach is applied. Using data from 13 countries in the SADC region from the period 1992-2018, we enumerate the variables’ marginal returns against the fixed investment component. The results of diagnostic and other tests show that all statistical procedures are robust. The result proves that the benefits of fixed investment are yielded over a long period rather than short periods. As a result, the cost in the short term cannot be compared to the benefits that will be enjoyed later by an economy as it becomes productive. Furthermore, the lack of consistent fixed investment among countries will eventually lead to insufficient cash flow, which will negatively affect the currency. These results would seem to suggest that the introduction of policies that promote investment will massively contribute to increased productivity and positive economic growth in the region.

scholarly journals Non-Resident Holdings of Domestic Debt in Nigeria

2020 ◽  
Vol 20 (63) ◽  
Author(s):  
Amr Hosny
Keyword(s):  
Interest Rates ◽  
Oil Prices ◽  
Policy Reforms ◽  
Short Term ◽  
Rates Of Return ◽  
Treasury Bills ◽  
Long Run ◽  
Domestic Debt ◽  
Short Run ◽  
Using Data

Foreign holdings of domestic debt instruments in Nigeria have been increasing. Using data over 2007M1-2019M1, we show that, on average, global factors (global interest rates, oil prices) seem to carry more weight than domestic factors (treasury bills rate and domestic risk) in foreign portfolio invetsors’ decisions in Nigeria. Specifically, we show that foreign participation is, in the long run, positively correlated with oil prices and profitable rates of return on local-currency instruments, but negatively correlated with exchange rate depreciation pressures. In the short run, oil prices, opportunity cost of funds and perception of Nigeria-specific risks also play a role. These results highlight the volatile short-term nature of such flows and call for a package of policy reforms to attract longer term direct investments.

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