euro depreciation and trade asymmetries between germany and italy versus the us industry level estimates abstractsince april 2014 to march 2015 the european central bank expansionary monetary policy instigates a huge depreciation of the euro in terms of dollar according to the mainstream monetary theory these dynamics should make the exports cheaper and at the same time make the imports more expensive has real depreciation of the euro helped in the improvement of european countries trade balances following the main methodologies in the recent literature our study analyses the effects of this depreciation both for italy and germany towards the us we use industry level data at monthly frequency the results are different from each bilateral relationship we find that 11 industries register a long run improvement 8 for italy and 3 for germany the j curve effect is proven just in six cases always for italy the inverted j curve effect is proven in eight cases four for germany and four for italy these results seem to be an indirect demonstration of the structural asymmetries between german and ital

estimation of the tenants benefits residing in public rental housing with unit size constraint in korea summary hicksian income equivalent variation ev has often been used to measure tenants benefits in evaluating public housing programmes a number of papers have so far attempted to apply hicksian ev under the implicit assumption of no constraint on unit size of public housing as a result overestimation of tenants benefits probably occurs where unit size constraints exist as in korea s public housing programme thus the purpose of the paper is to measure hicksian ev with the constraint in unit size of public housing by formulating a revised hicksian ev equation and comparing the result with constraint free cases it is found that hicksian ev with constraint in unit size decreases relative to that of the constraint free cases the extent of ev decrease depends on the income elasticity of demand for housing and the difference between the optimum consumption of public housing under rent support demand wanted and the actual constraint of unit size demand fulfilled

dynamics of material productivity and socioeconomic factors based on auto regressive distributed lag model in china material productivity mp measured as economic output such as gross domestic product gdp per corresponding material input is gained significant interest of becoming a widespread environmental sustainability indicator the study of mp s dynamics is very important for policy making on how to improve mp this paper applies the auto regressive distributed lag ardl model to investigate the dynamic impacts of energy intensity for secondary industry sei tertiary industry value added per gdp tva trade openness to and domestic extraction per capita dec on mp in the case of china during the period from 1980 to 2010 the validated and robust results of the model confirm the existence of cointegration among the variables both in the long and short run the impacts of selected socioeconomic factors can be summarized as follows 1 in the long run an sei decrease driven by technology improvement is found to be the main driver of mp and a 1 decrease in sei results in a 0 432 increase in mp 2 the magnitude of the impact of tva on mp is higher over the short run than over the long run 3 to can reluctantly promote mp both in the long and short run 4 dec exhibits fundamentally different behaviors in the long and short run dec is not a strongly significant factor for mp and the magnitude of the impact is very weak in the long run however it has the greatest negative impact on mp in the short run as a 1 increase in dec results in a 0 519 decrease in mp which demonstrates that the marginal revenue of resource input has already dramatically declined these insights from the study could be considerably helpful for sustainable resource management and material productivity enhancement

renewable energy consumption urbanization financial development income and co2 emissions in turkey testing ekc hypothesis with structural breaks abstract in this study the short and long run dynamic relationship between per capita gdp per capita carbon dioxide co2 emissions financial development per capita total renewable energy consumption hydropower consumption alternative energy consumption and urbanization was investigated by using ardl bounds testing approach gregory hansen and hatemi j cointegration tests for turkey during 1974 2014 the results of three cointegration test indicated that there was a long run relationship between these variables the coefficients obtained from the ardl fully modified least squares fmols and canonical cointegrating regression ccr estimators showed that economic growth financial development and urbanization increase environmental degradation while total renewable energy consumption hydropower consumption and alternative energy consumption had no effect on co2 emissions the findings showed that economic growth caused the greatest increases in co2 emissions followed by urbanization and financial development however renewable energy consumption was not at a desirable level to reduce co2 emissions the study also support environmental kuznets curve ekc hypothesis which establishes an inverted u shaped relationship between economic growth and co2 emissions the turning points of per capita gdp obtained from long run regressions were found to be around 13523 14077 us dollars outside the sample period the overall results indicated that turkey has not reached the level of per capita gdp that can reduce environmental pollution and renewable energy consumption is not a solution to reduce co2 emissions

exploring the effects of energy consumption on output per worker a study of albania bulgaria hungary and romania in this article we explore the long run cointegration between output capital and energy consumption in per worker terms for albania bulgaria hungary and romania we use the augmented solow 1956 model and the ardl bounds procedure pesaran et al 2001 to examine the short run and long run effects of energy and capital on output in per worker terms we also conduct causality test using the toda and yamamoto 1995 non causality procedure our results show the existence of long run cointegration between output per worker and energy per worker for all the four countries we find that energy per worker have a dynamic short run positive effect in albania 0 37 bulgaria 0 25 hungary 0 36 and romania 0 68 and a long run positive effect in bulgaria 0 32 and romania 0 63 which duly indicate that energy consumption has a momentous long run effect in these two countries the causality results indicate a unidirectional causation from output per worker to energy per worker for all the four countries and from capital per worker to energy per worker for albania and romania consequently a balance between effective energy consumption and sound energy conservation policies are likely to support economic growth in the four countries

bounds testing approach to analyzing the environment kuznets curve hypothesis with structural beaks the role of biomass energy consumption in the united states abstract this paper re examines the specification of the environmental kuznets curve ekc for the us economy by accounting for the presence of a major renewable energy source and trade openness over the period 1960 2016 biomass energy consumption and trade openness as well as oil prices are considered as additional determinants of economic growth and consequentially of co 2 emissions the bounds testing approach to cointegration is used to examine the long run relationship between the variables in the presence of structural breaks the causal relationship between the variables is investigated by applying the vecm granger causality test and accommodating structural breaks the results confirm the presence of cointegration between the variables moreover the relationship between economic growth and co 2 emissions is not only inverted u shaped but also n shaped in the presence of structural breaks and biomass biomass energy consumption lowers co 2 emissions exports imports and trade openness are also environment friendly the causality analysis underscores a feedback effect between biomass energy consumption and co 2 emissions economic growth still granger causes co 2 emissions in this new setup

does income inequality harm the environment empirical evidence from the united states abstract this study revisits the growth inequality environment nexus in the context of country specific time series data the short and long run effects of income inequality economic growth and energy consumption on co2 emissions in the u s are examined using the autoregressive distributed lag ardl approach we find that more equitable distribution of income in the u s results in better environmental quality in the short and long run it is also found that in both the short and long run economic growth has a beneficial effect on environmental quality whereas energy consumption has a detrimental effect on the environment

natural gas consumption and economic growth the role of foreign direct investment capital formation and trade openness in malaysia the objective of this paper is to reinvestigate the relationship between natural gas consumption and economic growth by including foreign direct investment capital and trade openness in malaysia for the period of 1971 2012 the structural break unit root test is employed to investigate the stationary properties of the series we have applied combined cointegration test to examine the relationship between the variables in the long run for robustness sake the ardl bounds testing method is also employed to test for a possible long run relationship in the presence of structural breaks we note the validity of cointegration between the variables natural gas consumption foreign direct investment capital formation and trade openness have positive influence on economic growth in malaysia the results support the presence of feedback hypothesis between natural gas consumption and economic growth foreign direct investment and economic growth and natural gas consumption and foreign direct investment the policy implications of these results are provided

electricity supply employment and real gdp in india evidence from cointegration and granger causality tests abstract this study probes nexus between electricity supply employment and real gdp for india within a multivariate framework using autoregressive distributed lag ardl bounds testing approach of cointegration long run equilibrium relationship has been established among these variables for the time span 1970 71 to 2005 06 the study further establishes long and short run granger causality running from real gdp and electricity supply to employment without any feedback effect thus growth in real gdp and electricity supply are responsible for the high level of employment in india the absence of causality running from electricity supply to real gdp implies that electricity demand and supply side measures can be adopted to reduce the wastage of electricity which would not affect future economic growth of india

causal independence between energy consumption and economic growth in liberia evidence from a non parametric bootstrapped causality test abstract this contribution investigates causal interdependence between energy consumption and economic growth in liberia and proposes application of a bootstrap methodology to better reflect causality employment is incorporated as additional variable the study demonstrates evidence of distinct bidirectional granger causality between energy consumption and economic growth additionally the results show that employment in liberia granger causes economic growth and apply irrespective of the short run or long run evidence from a monte carlo experiment reveals that the asymptotic granger causality test suffers size distortion problem for liberian data suggesting that the bootstrap technique employed in this study is more appropriate given the empirical results implications are that energy expansion policies like energy subsidy or low energy tariff for instance would be necessary to cope with demand exerted as a result of economic growth in liberia furthermore liberia might have the performance of its employment generation on the economy partly determined by adequate energy therefore it seems fully justified that a quick shift towards energy production based on clean energy sources may significantly slow down economic growth in liberia hence the government s target to implement a long term strategy to make liberia a carbon neutral country and eventually less carbon dependent by 2050 is understandable

tax evasion and heuristics a research note abstract the paper examines the heuristics which taxpayers use in making tax evasion decisions the following propositions are tested in an experiment using students first the taxpaper s own level of evasion will be positively related to what he perceives as the levels of evasion by others second taxpayers who have been audited are more likely to assess the probability of audit as higher and therefore decrease their levels of evasion the experimental results fail to support the first proposition but do support the second suggesting the presence of an availability effect

the demand for residential electricity in south africa abstract this paper examines the residential demand for electricity in south africa as a function of real gross domestic product per capita and the price of electricity during the period 1978 2005 we make use of the bounds testing approach to cointegration within an autoregressive distributed framework suggested by pesaran et al 2001 bounds testing approaches to the analysis of level relationships journal of applied econometrics 16 3 289 326 following the literature we use a linear double logarithmic form using income and price as independent variables in the empirical analysis in the long run we find that income is the main determinant of electricity demand while electricity price is insignificant

an econometric study of co2 emissions energy consumption income and foreign trade in turkey abstract this study attempts to empirically examine the dynamic causal relationships between carbon emissions energy consumption income and foreign trade in the case of turkey using the time series data for the period 1960 2005 this research tests the interrelationship between the variables using the bounds testing to cointegration procedure the bounds test results indicate that there exist two forms of long run relationships between the variables in the case of first form of long run relationship carbon emissions are determined by energy consumption income and foreign trade in the case of second long run relationship income is determined by carbon emissions energy consumption and foreign trade an augmented form of granger causality analysis is conducted amongst the variables the long run relationship of co2 emissions energy consumption income and foreign trade equation is also checked for the parameter stability the empirical results suggest that income is the most significant variable in explaining the carbon emissions in turkey which is followed by energy consumption and foreign trade moreover there exists a stable carbon emissions function the results also provide important policy recommendations

dynamics of oil price precious metal prices and the exchange rate in the long run abstract we examine the relationship between the oil price prices of precious metals gold silver and platinum and the us dollar british pound exchange rate using parametric and non parametric modelling over a 135 year period for the parametric model we employ a two regime threshold vector error correction model tvecm and find non linearity and asymmetries in the long term relationship between the oil gold price and oil silver price pairs during the typical regime in which the majority of observations lie non linear granger causality suggests evidence of bidirectional and unidirectional causality for the non parametric model we employ local linear ll non parametric regression to relax the assumptions regarding functional form the relationship between the oil price and each of the precious metal prices and the exchange rate exhibit non linearities the relationship between precious metal prices and the oil price is positive and generally increasing over time while the ll estimates for the exchange rate are negative and then positive and highly non linear

finance and income inequality in kazakhstan evidence since transition with policy suggestions abstractkazakhstan gained independence in 1990 and has undergone significant changes in economic social and trade conditions since then we analyse the effects of financial development on income inequality in kazakhstan incorporating economic growth foreign investment education and the role of democracy as the drivers we establish that income inequality in kazakhstan is impaired by financial development in summary we send three messages for policy purposes first strengthening financial sector is necessary to close the gap between haves and have nots second attracting fdi beyond the hydrocarbon sector is necessary to alleviate inequality finally adaptation of education system to the new social and economic environment would help in improving income distribution

the effects of mongolia s booming mining industry on its agricultural sector a test for dutch disease dutch disease occurs when currency strengthening associated with a booming sector of an economy crowds out a lagging trade dependent sector in this study a keynesian style model is specified to deduce hypotheses about how increased foreign direct investment fdi aimed at mongolia s mining sector affects its agricultural sector a key finding is that while econometric results suggest the increased fdi strengthened mongolia s currency its adverse effect on mongolia s trade sensitive agricultural sector is not sufficiently strong to cause the sector to decline although dutch disease was not detected the posited mechanism clearly is important specifically when currency strengthening is ignored the reduced form elasticity of agricultural value added with respect to fdi is 2 7 times larger than when currency strengthening is taken into account 0 103 vs 0 038 also fdi induced currency strengthening causes the keynesian multiplier y g to drop from 2 40 to 2 00 and the fdi multiplier y fdi to drop from 3 05 to 1 89

the redistributive effect of public housing in hong kong public housing programmes in hong kong affect half of the population directly and the other half indirectly this paper assesses the redistributive effect of public rental housing on income distribution it uses a subsidised to market rent ratio method and an imputed rent method to convert transfer in kind of public rental housing into equivalent monetary value empirical results show that the provision of public housing alleviates the income inequality problem however the amount of public expenditure required achieving the same improvements in gini coefficient and other inequality measures is small relative to the actual public expenditure on housing policy makers should thoroughly review the existing public housing programmes

the impact of economic growth on co2 emissions in azerbaijan abstract this paper investigates the relationship between the economic growth and co2 emissions in azerbaijan a cointegration analysis is conducted over the period 1992 2013 for getting more robust results johansen ardlbt dols fmols and ccr methods are employed to explore cointegration and estimate long run coefficients we use cubic quadratic and linear specifications and conclude that the last one is an adequate representation for the impact of the economic growth on co2 emissions in azerbaijan the results from the different cointegration methods are consistent with each other and show that the economic growth has a positive and statistically significant impact on the emissions in the long run implying that the ekc hypothesis does not hold for azerbaijan the income elasticity of co2 emissions using different methods is found to be between 0 7 and 0 8 moreover we find that any short run imbalance can be adjusted towards the long run equilibrium path within less than one year the paper concludes that measures to increase energy efficiency carbon pricing instruments in production and international domestic trade activities and nationwide social awareness programs to instruct about the negative consequences of pollution can be considered as relevant environmental policies aimed at reducing carbon emissions

energy consumption prices and economic growth in three ssa countries a comparative study in this paper we examine the causal relationship between energy consumption and economic growth in three sub saharan african countries namely south africa kenya and congo drc we incorporate prices as an intermittent variable in a bivariate setting between energy consumption and economic growth thereby creating a simple trivariate framework using the ardl bounds testing procedure we find that the causality between energy consumption and economic growth varies significantly across the countries under study the results show that for south africa and kenya there is a unidirectional causal flow from energy consumption to economic growth however for congo drc it is economic growth that drives energy consumption these findings have important policy implications insofar as energy conservation policies are concerned in the case of congo drc for example the implementation of energy conservation policies may not significantly affect economic growth because the country s economy is not entirely energy dependent however for south africa and kenya there is a need for more energy supply augmentations in order to cope with the long run energy demand in the short run however the two countries should explore more efficient and cost effective sources of energy in order to address the energy dependency problem

residential hedonic models a rational expectations approach to age effects abstract this paper develops a rational expectations framework for interpreting the coefficient on age in a standard hedonic model the model demonstrates that there are two components to the age coefficient a pure cross sectional depreciation component and a demand side component that changes over time we also show that a constant quality price index with age constant can be estimated by using any repeat sales database that contains the year of construction or property age when fairfax county data are fitted to the model the time series of age coefficients is non stationary they change from negative in the early 1980s to positive in the late 1980s we infer that the demand side component dominated in the latter period

the role of natural gas consumption and trade in tunisia s output this paper examines the impact of natural gas consumption real gross fixed capital formation and trade on the real gdp in case of tunisia over the period of 1980 2010 we used auto regressive distributed lag ardl bounds testing approach to test the existence of long run relationship between the variables the vector error correction method vecm granger approach is applied to test the direction of causal relation between the series our findings indicate the existence of long run relationship among the variables natural gas consumption real gross fixed capital formation and trade add in economic growth natural gas consumption real gross fixed capital formation and real trade granger cause real gdp these findings open up new insights for policy makers to formulate a comprehensive energy policy to sustain economic growth for long run

residential electricity demand dynamics in turkey abstract this article provides fresh empirical evidences for the income and price elasticies of the residential energy demand both in the short run and long run for turkey over the period 1968 2005 using the bounds testing procedure to cointegration the computed elasticities of income and price are consistent with the previous studies and as expected the long run elasticities are greater than the short run elasticities an augmented form of granger causality analysis is implemented among residential electricity income price and urbanization in the long run causality runs interactively through the error correction term from income price and urbanization to residential energy but the short run causality tests are inconclusive the parameter stability of the short run as well as long run coefficients in the residential energy demand function are tested the results of these tests display a stable pattern

brazil us commodity trade and the j curve currency devaluation or depreciation is said to temporarily worsen a country s trade balance and improve it later an effect that is called the j curve previous research that tested the j curve for brazil used the country s aggregate trade flows with the rest of the world and did not find support for the phenomenon in this article we consider the trade flows between brazil and a major trading partner the united states disaggregating their trade flows by commodity we then test the empirical validity of the j curve for each of the 92 industries that trade between the two countries we find support for the phenomenon in 31 industries therefore disaggregation by industry seems to yield some support for the phenomenon

estimating energy elasticity with structural changes in japan abstract the purpose of this paper is to estimate energy elasticity in japan taking into account structural changes we employ a residual based cointegration model developed by gregory and hansen gregory allan w hansen bruce e 1996 residual based tests for cointegration in models with regime shifts journal of econometrics 70 99 126 the empirical results show that the three variables have a stable relationship in the long term when considering structural changes in the second quarter of 1993 as compared with the values obtained in previous studies the income elasticity is higher and the price elasticity is lower from our analysis we can confirm whether a carbon tax will meet the objective of the kyoto protocol in conclusion the tax rate required in the case without structural changes is lower than that in the case with structural changes

population aging in healthcare a minor issue evidence from switzerland our study shows that population aging substantially affects healthcare expenditure hce this conclusion supports the popular but recently strongly contested view that the coming population aging will threaten the fiscal sustainability of health systems we contribute to this debate first by estimating the determinants of swiss healthcare expenditure hce with outlier robust dynamic regressions and second by projecting swiss hce based on the estimates produced and new population scenarios medical advances and gdp per capita also play a decisive role governments can mitigate hce growth by improving the health status of the population and by stimulating cost effective and productive medical advances

energy consumption in china and underlying factors in a changing landscape empirical evidence since the reform period abstract in recent decades the phenomenal growth in the chinese economy has created increasing energy consumption this is the first study analysing energy consumption in china considering economic social and political dimensions of globalisation along with the effects from trade and financial sectors the time period covers the full trajectory since the start of economic reform until recent times in this respect we use the konjunkturforschungsstelle kof globalisation index to explore the dynamic link between economic growth financial development trade and various dimensions of globalisation and energy consumption modern time series econometric techniques are used in establishing stationarity long run dynamics and causality of the series the findings suggest that globalisation decreases energy consumption in the short run but increases it in the long run however the effect of financial development on energy consumption in china is opposite to the globalisation effect on energy consumption granger causality reveals a feedback effect between economic globalisation and financial development globalisation in china can only reduce energy consumption if china develops its financial sector to a greater extent in future china should invest in its financial sector and low carbon energy alternatives to achieve sustainable development prevention of energy shortfalls and cleaner environment would assist in bridging the gap both from social and political aspects to ensure china benefits significantly with high economic growth in this asian century

are energy conservation policies effective without harming economic growth in the gulf cooperation council countries abstract this study explores the fossil fuels electricity consumption growth of the gross domestic product gdp relationship in the six gulf cooperation council gcc countries for the period 1980 2012 the aim of this study is to examine whether energy conservation policies are appropriate for these countries to reduce their high levels of electricity consumption the autoregressive distributed lag ardl and the toda yamamoto dolado lutkepohl tydl methodologies were employed to investigate this relationship the ardl results revealed that fossil fuels electricity consumption has a long run positive effect on gdp growth in the gcc countries however the tydl granger causality revealed different causality relationships among the countries a bi directional causality was found between fossil fuels electricity consumption and gdp growth in bahrain and the united arab emirates uae while one way causality from fossil fuels electricity consumption to gdp growth was found in oman and qatar on the other hand no causality was concluded between the variables in kuwait and saudi arabia from the results it is clear that energy conservation is not an ideal policy for the bahrain uae oman and qatar because it will have a negative consequence on their output however this policy can be implemented in kuwait and saudi arabia since it will not harm their output

estimation of residential electricity demand in hong kong under electricity charge subsidies abstract over the past decade the hong kong hk government provided electricity charges subsidies for residential accounts to alleviate the burden of inflation and later the burden of economic downturn in this study we estimate an econometric model of residential electricity demand and test the existence of a stable long run relationship for the period 1980 2016 while accounting for the relief measures set out by the hk government since 2008 empirical results suggest that there exists a long run relationship among residential electricity consumption electricity price income per capita and weather variables temperature or cooling degree days in the absence of electricity charge subsidies the demand is found to be both price and income inelastic on the other hand hk s residential electricity consumers are unresponsive to price and income changes when electricity subsidies are in place following its new carbon reduction plan hk is gradually phasing out coal for electricity generation to replace it mainly with natural gas our results suggest that new residential electricity charge subsidies can lessen the effectiveness of6 climate policies aimed at reducing electricity consumption through increases in the electricity price

capital mobility in the world economy an alternative test abstract this paper proposes a new measure and test of international capital mobility in order to investigate capital flows we utilize a small open economy version of campbell and mankiw s nber macroeconomic annual 1989 185 216 permanent income model our capital mobility measure focuses on the correlation between the country s consumption and net output instead of the correlation between domestic saving and domestic investment proposed by feldstein and horioka economic journal 90 1980 314 329 the model is estimated for 11 oecd countries the results suggest that the null hypothesis of perfect capital mobility cannot be rejected for more than a half of these countries on the other hand some kind of capital mobility constraints are detected for several countries including the united states and japan

gasoline and diesel demand in the eu implications for the 2030 emission goal abstract methodologically consistent demand estimates are necessary to analyze and forecast the effect of a common fuel policy across the eu 28 this study estimates short run and long run price and income elasticities for gasoline and diesel demands using the ardl bounds approach that also tests the existence of a long run relationship using data from 1978 to 2013 the results show that elasticity estimates between the eu 28 countries vary and the estimated long run elasticities are higher than their short run counterparts which is in line with expectations based on the existing literature the short run and long run income elasticities of gasoline and diesel demand are found to be more elastic than their price equivalents implying that if a charge on fuel is designed to decrease emissions by increasing the price the charge needs to rise at a higher rate than income an analysis of the eu s 2030 emission and fuel consumption reduction targets using the estimated long run elasticities shows that with the current tax scheme it cannot be guaranteed that emission targets will be achieved and thus a more stringent fuel tax policy is essential

import demand of crude oil and economic growth evidence from india abstract this study establishes a long run equilibrium relationship among quantity of crude oil import income and price of the imported crude in india for the time span 1970 1971 to 2005 2006 using autoregressive distributed lag ardl bounds testing approach of cointegration empirical results show that the long term income elasticity of imported crude in india is 1 97 and there exists a unidirectional long run causality running from economic growth to crude oil import so reduction of crude oil import will not affect the future economic growth in india in the long run india should take various energy efficiency and demand side management measures in transport sector along with other measures like expanding and strengthening indigenous resource base substituting imported fuels by domestic fuels and de controlling the price of petroleum products to reduce its import dependence

the structure of tourist expenditure in fiji evidence from unit root structural break tests the central aim of this paper is to investigate whether shocks to fiji s tourism industry have a permanent effect or a transitory effect on tourist expenditure in fiji to accomplish this aim the zivot and andrews 1992 one break test and the lumsdaine and papell 1997 two break tests are used the one break and two break tests reveal 1987 the year of the military coups in fiji as the year of the break moreover it is possible to reject the unit root null leading to the conclusion that shocks to fiji s tourism industry have a transitory effect on tourist expenditure in fiji

hedonic prices and public goods an argument for weighting locational attributes in hedonic regressions by lot size the hedonic price technique is frequently used for valuing attributes of housing in such an analysis a hedonic price function is specified p p x p is the price of a house and x is a vector of attributes of the house the attributes include structural features such as size age garage and fireplace and locational features such as neighborhood quality crime access to downtown and air quality the function is interpreted as an equilibrium price schedule for houses see rosen 5 its first derivative with respect to an element of x is an implicit price for that attribute the price function is estimated typically using cross sectional data from a housing market i argue that the measure of each locational attribute in a hedonic price function should be weighted by lot size and that the measure of each structural attribute should not be weighted the usual regression weights neither locational nor structural attributes by my argument if two houses are identical in every respect except that the measure of lot size of the first is twice that of the second then the measure for air quality access to parks and so on for the first should be twice that of the second i also argue that failure to weight locational attributes in a hedonic regression that should be weighted gives biased implicit price estimates for structural and locational attributes the direction and degree of bias depend on the correlations between the attributes and lot size in the housing market on the variance of lot size in the market and on the lot size of the observation for which implicit price is being estimated

the benefits of in kind government programs abstract in this paper i present a methodology to calculate the benefits of in kind programs such as public housing which restrict consumption of some goods to the levels offered by the government most previous studies begin with an a priori specification of the direct utility function i begin with the ordinary demand function and then integrate demand to recover the indirect utility function and the expenditure function i argue that this approach gives additional flexibility in choosing a functional form which best describes the data i then use this methodology to estimate the benefits of the u s government s section 8 housing program

international evidence on persistence in output in the presence of an episodic change this paper uses some newly developed methods and techniques to examine the dynamic properties of international output in the presence of a structural break we provide statistical evidence to show that the unit root test results can in some cases be sensitive to whether a one time structural break in the data is modelled exogenously or endogenously however in most cases the unit root test results remain robust to specification of the structural break exogenously or endogenously moreover we find that the null hypothesis of a unit root in output can be rejected in favour of a flexible trend alternative for a number of countries such as canada denmark france and the united states

sector value addition technology and co2 emissions in saudi arabia abstract this study assesses the environmental kuznets curve ekc hypothesis with the case study of saudi arabia by considering three channels volume of production sector value addition to gdp and technological innovation using a long time series data set and applying autoregressive distributed lags ardl methodology this study nullifies the existence of the ekc hypothesis in the case of saudi arabia the study also provides robust evidence that economic growth fosters co2 emissions linearly the results also present that the value addition of growth in the industrial and service sectors is responsible for faster growth in co2 emissions while agriculture value addition is negatively and insignificantly associated with emissions finally this study shows that technological innovation is insignificant in helping to reduce co2 emissions thus substantial technological progress in the production process would reduce co2 emissions without harming economic growth

on the causal dynamics between economic growth renewable energy consumption co2 emissions and trade openness fresh evidence from brics countries abstract the current study investigates the causal relationship between economic growth and renewable energy consumption in the brics countries over the period 1971 2010 within a multivariate framework the ardl bounds testing approach to cointegration and vector error correction model vecm are used to examine the long run and causal relationships between economic growth renewable energy consumption trade openness and carbon dioxide emissions empirical evidence shows that based on the ardl estimates there exist long run equilibrium relationships among the competing variables regarding the vecm results bi directional granger causality exists between economic growth and renewable energy consumption suggesting the feedback hypothesis which can explain the role of renewable energy in stimulating economic growth in brics countries

searching for a break in gnp it has been suggested that existing estimates of the long run impact of a surprise move in income may have a substantial upward bias due to the presence of a trend break in postwar u s gross national product data this article shows that the statistical evidence does not warrant abandoning the no trend break null hypothesis a key part of the argument is that conventionally computed p values overstate the likelihood of the trend break alternative hypothesis this is because they do not take into account that in practice the date is chosen based on pretest examination of the data

the demand for housing characteristics in developing countries this paper develops and estimates an econometric model of the household demand for housing characteristics the model is estimated using data from five cities and three developing countries overall the procedures employed work well in a wide variety of circumstances more specifically it is found that 1 household willingness to pay for living space increases with income but at a less than proportionate rate 2 willlingness to pay for living space declines as household size increases 3 willingness to pay for several quality measures structural quality wall roof and floor quality is quite responsive to income

the short and long run causality relationship among economic growth energy consumption and financial development evidence from south mediterranean countries smcs abstract this study aims at examining the short run and long run causal link between economic growth energy consumption and financial development by using data set of 6 smcs for the 1995 2015 periods the basic testing procedure requires four steps adf and pp unit root tests bound tests for co integration ardl approach and vecm method the results confirm cointegration between the variables it means that the long run relationship exists the short run causal relationships unidirectional exist at least once for each country except egypt the granger causality results for individual countries give mixed results these results urge for the attention of the policy makers in smcs to design a comprehensive energy conservation policy to minimize the consequences of massive energy consumption on economic growth by adding financial development

the effects of the yuan dollar exchange rate on agricultural commodity trade between the united states china and their competitors the united states claims that the undervaluation of chinese currency the yuan causes u s exports to china to decrease and imports from china to increase furthermore because the yuan is undervalued only against the dollar u s competitors have an advantage in exporting to china and china has an advantage over its competitors in exporting to the united states this study develops a theoretical model to analyze the effect of the yuan undervaluation on prices supply demand and trade in the united states china and their competitors this study applies a cointegration error correction model to empirically quantify the short run and long run effects of the devaluation of the yuan on important agricultural commodities traded between the united states china and their competitors these commodities include chinese imports of milk soybeans and cotton from the united states and u s imports of beans fruit juice and fruit from china the results show that yuan devaluation causes chinese imports of u s milk soybeans and cotton to decline and u s imports of beans fruit juice and fruit from china to increase in the short run and in the long run

does the law of one price hold in a high inflation environment a tale of two cities in turkey this study addresses the price convergence in two cities in turkey istanbul and ankara using annual data over the three quarters of the twentieth century 1922 1998 characterized by prevailing high inflation rates for most of the period in contrast to the rest of the literature addressing convergence in price levels with a typical result of extremely slow convergence rates at best we argue that convergence is much easier detected in growth rates rather than levels of prices we suggest using the bounds testing procedure of pesaran et al 2001 for this purpose we find a clear cut evidence on the existence of a common driving force behind inflation dynamics in istanbul and ankara a finding that is in contrast with the results typically reported in related literature

are shocks to tourism transitory at business cycle horizons the goal of this article is to propose a theoretical framework based on a macro model that can be used to examine the relative importance of permanent and transitory shocks in explaining variations in tourist expenditure and gross domestic product gdp at business cycle horizons we estimate the model for australia our findings reveal a common trend and common cycle relationship among tourist expenditure and gdp and the variance decomposition analysis of shocks reveals that at business cycle horizons permanent shocks explain the bulk of the variations in output while transitory shocks explain the bulk of the variations in tourist expenditure

environmental degradation in france the effects of fdi financial development and energy innovations abstract this paper explores the determinants of carbon emissions in france by accounting for the significant role played by foreign direct investment fdi financial development economic growth energy consumption and energy research innovations in influencing co 2 emissions function in this endeavour we employ the novel sor shahbaz et al 2017 unit root test on french time series data over the period 1955 2016 to examine the order of integration in the presence of sharp and smooth structural breaks in the variables we also apply the bootstrapping bounds testing approach recently developed by mcnown et al 2018 to investigate the presence of cointegration and the empirical findings underscore the presence of cointegration among the time series moreover we find that fdi has a positive impact while energy research innovations have a negative impact on french carbon emissions financial development lowers carbon emissions thereby improving the french environmental quality fdi degrades the environment and thus supports the pollution haven hypothesis in france similarly financial development suggests that financial stability is a required condition for improving environmental quality so are energy research innovations contrarily energy consumption is positively linked with carbon emissions however the relationship between economic growth and co 2 emissions is an inverted u which is a validation of the environmental kuznets curve ekc

income distribution and co2 emission a comparative analysis for china and india abstract the aim of this paper is to test whether income inequality contributes to environmental degradation in china and india where both countries are giving a great concern about the implications of their unsustainable energy consumption to the environment not only to themselves but also to the global environmental sustainability by applying the bounds test approach to cointegration we found in both countries a long run but not a statistically significant relationship between income inequality and co 2 emissions both in the long run and in the short run the robustness of our cointegration results is also ascertained by using three different long run tests furthermore applying the variance decomposition analysis to examine the dynamic causal relationship between the gini coefficient of income distribution and co 2 emissions we found that income inequality was the least important factor in determining co 2 emissions and that there was no causality running in any direction between co 2 emissions and income inequality in both countries still income and energy consumption are the major determinants of co 2 emissions in both countries nevertheless even though the evidence is not statistically significant in the case of china it indicates that reducing income inequality can have a positive impact on environmental quality while in india redistributing income to improve environmental degradation may not be effective

us indonesia trade at commodity level and the role of the exchange rate previous studies that assessed the impact of currency depreciation on inpayments and outpayments of indonesia with her major trading partners did not find much significant results especially in the trade with the united states we wonder whether insignificant link between the real rupiah dollar rate and indonesia s inpayments and outpayments with the united states is due to aggregation bias to answer this question we disaggregate the trade flows between the two countries by commodity and consider the sensitivity of inpayments of 108 us exporting industries and outpayments of 32 us importing industries from indonesia we find that most industries respond to exchange rate changes in the short run in the long run however 32 inpayments schedule and 17 outpayments schedule are significantly affected a 1 real depreciation of the dollar was found to improve us trade balance by 1 8

nonlinear budget constraints and consumer demand an application to public programs for residential housing abstract this study presents a methodology for exploiting the nonlinear hedonic nature of housing prices to estimate the compensated demands of households for particular housing attributes the methodology is employed to provide hicksian benefit measures of a particular housing subsidy program typical of those undertaken recently in developing countries

the long run and causal analysis of energy growth openness and financial development on carbon emissions in turkey abstract the aim of this paper is to examine the causal relationship between financial development trade economic growth energy consumption and carbon emissions in turkey for the 1960 2007 period the bounds f test for cointegration test yields evidence of a long run relationship between per capita carbon emissions per capita energy consumption per capita real income the square of per capita real income openness and financial development the results show that an increase in foreign trade to gdp ratio results an increase in per capita carbon emissions and financial development variable has no significant effect on per capita carbon emissions in the long run these results also support the validity of ekc hypothesis in the turkish economy it means that the level of co 2 emissions initially increases with income until it reaches its stabilization point then it declines in turkey in addition the paper explores causal relationship between the variables by using error correction based granger causality models

investigating the relationship between electricity consumption and economic growth evidence from south africa abstract this paper explores the causal relationship among electricity consumption economic growth financial development and co 2 emissions for south africa over the period 1971 2012 the autoregressive distributed lag ardl bounds test is used to test for the presence of cointegration whereas the toda and yamamoto augmented granger causality test is used for direction of causality the results of ardl bounds test validate the existence of cointegration among the included variables further the toda and yamamoto granger causality test affirms that there is no causality between electricity consumption and economic growth this signifies that neutrality hypothesis holds for south africa during the period under the study additionally there is a unidirectional causality running from co 2 emissions to electricity consumption as well as a unidirectional causality running from financial development to co 2 emissions the empirical finding suggests that policy makers should establish concrete plans to increase investment in the electricity sector to ensure reliability of supply moreover policy makers need to address the pressing environmental concern by tapping into the sizeable renewable energy potential of the country consequently it will assist in promoting sustainable economic growth and development

new evidence from the misery index in the crime function abstract we propose a parsimony model which is clear from multicollinearity and specification problems in the standard crime function this study examines the relationship between the misery index and the crime rate in the unites states from 1960 to 2005

inequality and growth in the united states is there asymmetric response at the state level a previous study that tried to assess the impact of economic growth on income inequality in the u s used state level data and an ardl panel model to conclude that economic growth worsens income in

alternative housing concepts and the benefits of public housing programs abstract almost all previous studies analyzing the benefits and consumption effects of public housing programs have used aggregation theorems to construct composite goods housing and all other goods in this paper we show that if it is more realistically assumed that households have preferences defined on housing characteristics benefits estimated using the composite approach are upward biased some empirical work suggests that the bias is large we therefore strongly advise to take into account the composition of the bundle of housing attributes provided under a public housing program when evaluating the program s economic effects

revisiting the bi directional causality between debt and growth evidence from linear and nonlinear tests abstract we revisit the bi directional causality between public debt and the rate of gdp growth for 10 emu countries alongside the us uk and japan over sample periods spanning from 1970 up to 2014 whilst accounting for the nonlinear properties of both the individual time series and their relation in both directions our results indicate that the causal relation between debt and growth in either direction is weak at best for most of the countries in our sample we find no robust evidence of a long run causal effect using bi variate granger causality tests bi directional causality is detected only for austria while for france luxembourg and portugal causality runs solely from debt to growth but the estimated effects are very small in finland spain and italy granger causality from growth to debt in the former two and debt to growth in italy appears to be present in the short run our findings cannot be taken as evidence that a high level of public indebtedness is not risky for the economy or as invalidating hypotheses postulating effects in either direction in the relation between debt and growth

the choice of functional form and variables in the hedonic price model in seoul this study demonstrates that the important part of exploring the proper functional form of the hedonic price model would include investigating a dissimilar and unique hedonic price structure when the hedonic price model is applied to different housing markets based on the adjustment to the usual technique necessitated by the regional and cultural setting of seoul the criteria for significance of implicit price root mean square percentage error and the log likelihood ratio test are applied to the choice of a useful functional form we conclude that investigating the structure of a local housing market and choosing proper variables reflecting regional and cultural characteristics both key parts of such a study require significant adjustment to the reality of seoul

identifying the impacts of human capital on carbon emissions in pakistan abstract at present carbon emissions reduction is a very important challenge all over the world improvement of human capital helps to reduce carbon emissions this paper studies the long and short term effects of human capital on carbon emissions in pakistan from 1971 to 2014 we employ an autoregressive distributed lag model and the vector error correction model to analyze the co integration and direction of causalities between human capital and carbon emissions respectively results show that a significant long term relationship exists between human capital and carbon emissions improvement of human capital will reduce carbon emissions without decreasing economic growth granger causality test results describe the bidirectional causality that exists between human capital and carbon emissions in the long term and no causality in the short term human capital and economic growth have feedback effects in the long term and no effect in the short term the results of this study show that improvement in human capital through education will help carbon emissions reduction in the long term this study will help policymakers devise a comprehensive strategy to reduce carbon emissions through improvement of human capital

estimating residential demand for electricity in the united states 1965 2006 abstract this paper examines the residential demand for electricity in the us economy as a function of the per capita income the price of electricity the price of oil for heating purposes the weather conditions and the stock of occupied housing over the period 1965 2006 this paper has two novelties first the occupied stock of houses as a proxy for the stock of electrical appliances and second the identification of a possible equilibrium relationship among the variables is ascertained through the recently advanced ardl approach to cointegration our empirical findings give support to a stable long run relationship implying also short run and long run elasticities whose size and sign are comparable to other similar studies

the electricity consumption and gdp nexus for the fiji islands fiji is a small open island economy dependent on energy for its growth and development hence the relationship between energy consumption and economic growth is crucial for fiji s development in this paper we investigate the nexus between electricity consumption and economic growth for fiji within a multivariate framework through including the labour force variable we use the bounds testing approach to cointegration and find that electricity consumption gdp and labour force are only cointegrated when gdp is the endogenous variable we use the granger causality f test and find that in the long run causality runs from electricity consumption and labour force to gdp implying that fiji is an energy dependent country and thus energy conservation policies will have an adverse effect on fiji s economic growth

revisiting the environmental kuznets curve in a global economy the present study deals with an empirical investigation between co2 emissions energy intensity economic growth and globalization using annual data over the period of 1970 2010 for turkish economy we applied unit root test and cointegration approach in the presence of structural breaks the direction of causality between the variables is investigated by applying the vecm granger causality approach our results confirmed the existence of cointegration between the series the empirical evidence reported that energy intensity and economic growth globalization increase condense co2 emissions the results also validated the presence of environmental kuznets curve ekc the causality analysis shows bidirectional causality between economic growth and co2 emissions this implies that economic growth can be boosted at the cost of environment

savings and investment in australia it has become popular to advocate tax reduction on the basis of promoting savings investment and ultimately economic growth the linkage between the variables is argued by various neoclassical growth models and is further suggested by recent studies which highlight the close association between domestic saving and investment rates the close association may allow for polices which alter domestic saving levels in order to alter domestic investment levels this interpretation however presumes an endogenous investment response equally likely theoretically is that the close association is maintained by movements in national savings the present paper explicitly examines the endogeneity of the australian saving and investment rates the results highlight the exogeneity of investment the results further suggest an endogenous response on the part of australia s saving rate the results may limit the potential benefits of these tax changes

the dynamic links between energy consumption economic growth financial development and trade in china fresh evidence from multivariate framework analysis abstract this study investigates the relationship between energy use and economic growth by incorporating financial development international trade and capital as important factors of production function in case of china over the period of 1971 2011 the ardl bounds testing approach to cointegration was applied to examine long run relationship among the series while stationarity properties of the variables was tested by applying structural break test our empirical evidence confirmed long run relationship among the variables the results showed that energy use financial development capital exports imports and international trade have positive impact on economic growth the granger causality analysis revealed that unidirectional causal relationship running from energy use to economic growth financial development and energy use granger cause each other there is bidirectional causality between international trade and energy use the feedback relation exists between financial development and international trade there is also bidirectional causality exists between capital and energy demand financial development and economic growth and international trade and economic growth this paper makes significant contribution in energy economics and opens up new direction for policy makers to explore new and alternative sources of energy which would be helpful in meeting the rising demand of energy due to sustained rate of economic growth

the saving and investment nexus for china evidence from cointegration tests the saving and investment nexus as postulated by feldstein and horioka fh 1980 is revisited the saving investment correlation for china is estimated over the periods 1952 1998 and 1952 1994 the latter culminating in a period of fixed exchange rate regime amongst the key results it is found that saving and investment are correlated for china for both the period of the fixed exchange rate and the entire sample period with high saving investment correlation the results suggest that the chinese economy is in conformity with the fh hypothesis this is a valid outcome for in china capital mobility was fairly restricted over the 1952 1994 period as indicated by the relatively low foreign direct investment

revisiting the environmental kuznets curve hypothesis evidence from the asean 5 countries with structural breaks abstractthis paper tests if the environmental kuznets curve ekc hypothesis exists for asean 5 countries in an annual sample data that covers 1971 2013 by utilizing auto regressive distributed la