This study investigates the magnet effect after relaxing the daily price limits in the Taiwan Stock Exchange by using a logit model, as proposed by Hsieh, Kim, and Yang (2009). Our empirical results indicate that the magnet effect disappears after the relaxed daily price limits, especially in...

This study proposes a structural change with threshold approach to re-evaluate the empirical validity of Okun's law using data from Canada. Based on the Hodrick-Prescott and band-pass filtered data, we find strong support of structural change as well as threshold nonlinearity. This suggests that...