Recent estimates of the income elasticity of cigarette demand have pointed to a disturbing result: a nearly zero or sometimes negative income elasticity. In order to explore the nonlinearity embedded in the cigarette demand structure, we employ a four-regime panel model (dynamic fixed effect) to...

Volatility changes before and after a major event cannot be effectively modelled without considering the impact of other events during the sample period. This paper reexamines the impact of settlement time changes on the volatility change in the Shanghai and Shenzhen Stock Exchange by Li et al....

This paper estimates the demand for cigarettes using panel data – 42 states and Washington, D.C. – from 1961 to 2002. We first employ the panel unit root test before estimating the demand structure. We have found that (i) the price and income elasticities are approximately –0.41 and 0.06,...

This paper presents an analysis of the empirical relationship between stock returns, industrial production, money supply, inflation and interest rates across five countries-Canada, France, Japan, Taiwan and the USA. Specifically, we estimate a five-variable vector autoregression model in order...

This paper employs both linear and non-linear models to investigate the relationship between national defense spending and economic growth for Taiwan and China. Using data from 1953-2000 on defense spending, GDP, import, export and capital, we find that China's defense spending leads that of...

We use cross sectional data (1995–2005 yearly averages) for 88 countries to investigate the nonlinear relationship between tourism development and economic growth when a threshold variable is used. The degree of tourism specialization (qi, defined as receipts from international tourism as a...