This study proposes an alternative theoretical framework for testing twin deficits hypothesis from the general equilibrium perspective (income-expenditure equilibrium) that takes both the behavioural variables - saving and investment into consideration. Empirically, the cointegration tests show...

The paper examines the effects of skilled immigration on US wages that are due to innovation. We extend the studies by Hunt & Gauthier-Loiselle (2010), and Hunt (2011) to explore the immigration-innovation-wages nexus. Using the National Survey of College Graduates (NSCG) and the US Census...

A theoretical framework based on economics is provided for assessing tourism's costs and benefits. Suppose that resources utilized by tourists are owned by residents and, as marketed goods or services, are priced efficiently. Then increased tourism promotes net average (i.e., Pareto) economic...

Fixed effects vector decomposition (FEVD) is simply an instrumental variables (IV) estimator with a particular choice of instruments and a special case of the well-known Hausman-Taylor IV procedure. Plümper and Troeger (PT) now acknowledge this point and disown the three-stage procedure that...

This article studies a simple, coherent approach for identifying and estimating error correcting vector autoregressive moving average (EC-VARMA) models. Canonical correlation analysis is implemented for both determining the cointegrating rank, using a strongly consistent method, and identifying...

This paper investigates international responses of key macroeconomic variables, particularly real exchange rates, to simultaneous shocks to productivity in the traded sector in eight Asian emerging and developing countries. We use panel estimation techniques to construct component submodels in a...

Modelling stock return generating process as a single factor model, we show analytically that the relation between idiosyncratic volatility measured as variance of the residuals and expected stock return in the cross-section may be represented by a parabola that opens to the left and has...

A new innovations state space modeling framework, incorporating Box-Cox transformations, Fourier series with time varying coefficients and ARMA error correction, is introduced for forecasting complex seasonal time series that cannot be handled using existing forecasting models. Such complex time...

Corrupt activities are seldom observed directly. Naturally, everyone involved in such behaviour has good reasons to remain silent. Much progress has been made in cross-country econometric analysis on the determinants of corruption. Still, if one wishes to have a closer look at corrupt behaviour,...