Posts Tagged ‘C13’

IS STABILITY FOR REGIONAL DISPARITIES OF UNEMPLOYMENT RATES TRULY MYSTERIOUS? AN ANALYSIS FROM STATISTICAL APPROACH

Tsunetada HIROBE

Professor, Department of Economics, Meikai University, 1 Akemi, Urayasu, Chiba 279-8550, Japan

tsune@meikai.ac.jp

Abstract

The paper analyzes the peculiar phenomenon of regional disparities brought by the changes in the geographical distribution of US unemployment rates. Specifically, we investigate the characteristics concerning the gap of that regional distribution especially focusing upon the statistical analysis by mainly an exploratory way. Reduction in disparities or Expansion in disparities usually involves reducing or increasing the overall level of distribution, and the so-called relative disparity between all states of the U.S. shows an extremely stable transition of distribution within a certain range. This is a mysterious phenomenon that is also shown in any other country in the world. One of the reasons that the regional distribution of unemployment rates becomes stable is derived from the robustness of that geographical distribution; this is one of the reasons that the unemployment rate does not fluctuate significantly. Even if that robustness deteriorates for some reason, then the unemployment rate updates the values of minimum and maximum, or only just the range of variation expands; the relative disparities between regions tend to be offset by increases or decreases in the same direction as a result. Since that range is usually very limited, the gap frequently fluctuates up and down within a confined extent and it does not necessarily converge or diverge to a specific point; it would constantly change within the allowable fluctuation range depending on the socio-economic situation.

Keywords: unemployment rate, regional disparity, convergence, equilibrium, stability

JEL classification: C13, C15, J69, R12, R19

read more

A MEASUREMENT ISSUE REGARDING THE LINK BETWEEN A REGION’S CREATIVE INFRASTRUCTURE AND ITS INCOME

Amitrajeet A. BATABYAL

Department of Economics, Rochester Institute of Technology, 92 Lomb Memorial Drive, Rochester, NY 14623-5604, USA.

aabgsh@rit.edu

Seung JICK YOO

Corresponding Author. Graduate School of International Service, Sookmyung Women’s University, 100 Cheongpa-ro 47-gil, Yongsan-gu, Seoul, Republic of Korea.

sjyoo@sookmyung.ac.kr

Abstract

The creative capital possessed by the members of the creative class in region  is either acquired through education or present innately in these members. Therefore, the creative infrastructure  in the  region is the sum of a part  representing creative capital obtained through education and a second part  denoting creative capital present innately in the creative class members. A researcher wishes to estimate the true relationship between the  region’s log income per creative class member  and its creative infrastructure  He has data on  but not on  We study whether an ordinary least squares (OLS) regression of  on a constant and  will produce an unbiased estimate of the impact of  on  in two cases. In the first case,  and  are uncorrelated. In the second case,  and  are positively correlated.

Keywords: Creative Capital, Creative Infrastructure, Ordinary Least Squares Estimation

JEL classification: L80, C13
read more

INVESTIGATING THE IMPACT OF FINANCIAL INNOVATION ON THE VOLATILITY OF THE DEMAND FOR MONEY IN THE UNITED STATED IN THE CONTEXT OF AN ARCH/GARCH MODEL

Payam MOHAMMAD ALIHA

Ph.D candidate, Universiti Kebangsaan Malaysia (UKM), Malaysia

payammaliha@gmail.com

Tamat SARMIDI

Associate Professor Dr. at Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM), Malaysia

tamat@ukm.edu.my

Fathin FAIZAH SAID

Dr. at Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM), Malaysia

fatin@ukm.edu.my

Abstract

This paper investigates the effect of financial innovation on real money demand in the United States using GARCH estimation technique between 1990 and 2016. Ratios of broad money stock to GDP and growth in net domestic credit to GDP were included in a conventional money demand function to account for the financial innovation. The results indicate that neither external shocks (financial innovation) nor internal shocks (previous years’ information) influence the volatility of the money demand.

Keywords: money demand, ARCH/GARCH, financial innovation, internal/external shock

JEL classification: C13, C40, C51, E40, E44
read more