Integral Estimator with Kernel Approach for Estimating Nonparametric Regression Functions

Derivatives are measurements of how a function change as the input value changes, or in general a derivative shows how one quantity changes due to a change in another quantity. The concept of universal or comprehensive function derivatives is widely used in various scientific fields. For example, in economics, people are interested in studying the condition of the derivative of an objective function as the result of an optimization problem. In this study, nonparametric procedures are used to estimate a function where the form of the function does not lead to a particular function model. Suppose we are given a nonparametric regression model where f is an unknown function. The main problem of regression analysis is to determine the form of estimation f. To determine the estimation of f, one approach that can be used is the integral estimator with the Gaussian Kernel approach. Furthermore, as an application, the Labour Force Participation Rate (y) data is used with the predictor variable, namely the Average Length of Schooling (x). By using the GCV (Generalized Cross Validation) method, the optimal bandwidth is obtained at h = 80 with a GCV value of 0.243 with an MSE value of 32.1864.

Determinants of Labour Force Participation Rate in Malaysia from Gender Perspective

Labour force participation rate (LFPR) is always a concern in economic view in Malaysia. This research study on how the labour force factors will affect the LFPR according to gender perspective for every state in Malaysia from the year 2011 to 2016. Static Panel Data analysis were used in this study. By using Fixed effect model (FEM), outside labour force, non-married, secondary, and tertiary education level have inverse relationship with male LFPR, while the marital status of labour force has positive relationship with male LFPR. Next, for the effect of determinants and characteristics of labour force on female LFPR, Random effect model (REM) was used. The model shows that unemployed, widowed status, outside labour force, and marital status have an inverse relationship with female LFPR. Meanwhile, non-formal education level, tertiary education level, and age group between 40-64 have positive relationship with female LFPR. In conclusion, it is important to understand the LFPR according to gender in Malaysia because it will shape the comparative advantage and describes the situation of Malaysia’s labour market. This study provides an overview of labour force in Malaysia using an appropriate statistical modelling known as panel data approach.

The Changing Spousal Differentials in Socio-demographic Characteristics in Malaysia

This paper uses matched couple data from the 1991, 2000, and 2010 population censuses to examine the changes in spousal differentials in age, education, and work status, as well as inter-ethnic and international marriages. The general trend is one of decreasing spousal age and educational gaps between 1991 and 2010. Although older-man younger-woman marriages still predominated, the spousal age gap decreased from 4.6 years to 3.9 years, and the proportion of marriages in which the husband was more than 6 years older than the wife declined from 30% to 24%. Educational homogamy (couples having the same educational level) rose from 53% to 64%, while the proportion of women marrying someone of higher education declined from 33% to 21%. Inter-ethnic marriage hovered around 4.2% throughout the study period, after rising from less than 1% in the 1980s. International marriages made up about 1.2% of all marriages in 2010, up from 0.8% in 1991. The labour force participation rate of married women had increased significantly, resulting in the rise of dual-income households. The changing spousal differentials in socio-demographic characteristics are bound to alter gender roles and relations that will impact Malaysia’s family institution and demographic outcomes.

Separating aggregate discouraged and added worker effects: the case of a former transition country

Research background: We analyse the added worker effect (AWE) and the discouraged worker effect (DWE) from an aggregate perspective. The first effect refers to an increase in labour force participation in response to a decrease in the wage rate. The second effect refers to the decision by workers who have been unsuccessful in their job search to leave the labour market or to decrease their labour force participation. For our analysis, we use the case of Poland, a country with a persistently low labour force participation rate. Purpose of the article: While previous studies focused on the net of the two effects, we aim to analyse the two effects both separately and simultaneously. We propose a new approach for analysing the two effects. We generalise and model them as resulting from different shocks: (i) the AWE as the result of a negative wage income shock, and (ii) the DWE as the result of a positive job search time shock. The underlying assumption is that both shocks have at least a transitory effect on the labour force participation rate. However, we also track the potential long-lasting effects of these shocks, and we analyse the reactions of gender and age groups to them. While this approach demonstrates the robustness of our results, it also provides the range of the sensitivity, as it shows that there are large differences in the magnitude of the AWE and the DWE for different labour market cohorts. Methods: We use the multivariate unobserved component model to extract the AWE and the DWE, and we then use VAR models, applying sign and exclusion restrictions to model the underlying shocks. We use quarterly data for Poland in 1995?2019. Most of these data come from the Labour Force Survey, while the rest come from Statistics Poland. Findings & value added: In contrast to previous literature, which analysed only the net effect of the two effects, we model the AWE and the DWE separately. Contrary to the findings of previous research, our approach seems to confirm that both effects are simultaneously present in the labour market, and both effects influence the labour force participation rate. Thus, we find that both effects are significant. Specifically, we show that the AWE is stronger, but transitory; while the DWE is weaker, but long-lasting.

Socio-economic and demographic determinants of fertility in six selected Pacific Island Countries: An empirical study

In this study, we seek to perform macro analysis of fertility in a panel of 6 selected Pacific Island Countries (PICs, hereafter). The macro analysis with secondary data, mostly obtained from World Bank database, stretched over the period 1990–2019 was stacked randomly in a balanced panel set-up, within which the most preferred fixed effect model is used for multivariate analysis. Pooled OLS and Random effect estimation techniques were applied for comparing results. Categories such as women’s empowerment, health, connectivity and cost of living were used to classify proxy variables as regressors for fertility determination. The results indicate variables such as contraceptive prevalence rate, female labour force participation rate and consumer price index (inflation) are negatively correlated with fertility at 1% level, while urbanisation is negatively correlated with fertility rate only at 10% significance level. Real GDP has negative relationship with fertility, however it is not statistically significant. Variables that are positively correlated with fertility but hold limited to no significance effects are female secondary enrolment, female population, mobile subscription and infant mortality rate. It is implied that those variables that are negatively associated with fertility, as well as Real GDP will be the major drivers for achieving replacement level fertility in the long run.

MACROECONOMIC EFFECTS OF BUDGET DEFICIT IN NIGERIA

This study probed the macroeconomic effects of budget deficit in Nigeria. Specifically, it seeks to probe the effect of budget deficit on private investment and public investment in Nigeria by adopting the ADF unit root test and ARDL model, Granger Causality test and the short-run diagnostics and stability using annual time series data covering 37 years from 1981 to 2019. The variables employed include – Growth rate of real gross domestic product, private investment (Gross Fixed Capital Formation) as a percentage of GDP, public investment measured as ratio government capital expenditure to GDP, budget deficit, money supply measured as ratio of GDP, inflation rate measured by annual year-on-year inflation rate, interest rate, labour force participation rate. The research findings admitted that, budget deficit have positive and significant impact on economic growth in Nigeria. Therefore, government budget deficit has no crowding out effect on investment. The study also reveals that budget deficit has negative and insignificant impact on private investment in Nigeria. In addition, further investigation shows budget deficit have positive and significant impact on public investment in Nigeria. Also, the study asserts that there is unidirectional causality running from budget deficit to economic growth, private investment and public investment. Based on the research findings of this study, Government must ensure and maintain strong fiscal discipline without compromising the wellbeing of the citizenry by allocating budget spending to sectors that can translate the deficit into high economic growth both in the short and long runs. Furthermore, budget deficit financing in Nigeria should be focused on the productive sectors of the economy. This is because deficit financing has merely resulted in economic instability indicating that sound policies are needed to achieve economic stability in Nigeria. JEL: E02, H61, E22 <p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0778/a.php" alt="Hit counter" /></p>