Asymmetric impact of oil prices,exchange rate,and inflation on tourism demand in Pakistan: new evidence from nonlinear ARDL

This study scrutinized the asymmetric impact of oil prices, exchange rate, and inflation on tourism demand in Pakistan using [Shin, Y., Yu, B., & Greenwood-Nimmo, M. (2014) Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL framework. In Festschrift in honor of peter schmidt (pp. 281–314). New York, NY: Springer] nonlinear autoregressive distributed lag (NARDL) model. The NARDL bounds test examined the existence of cointegration in study variables, including CO₂ emissions, institutional quality, oil prices, exchange rate, inflation, and tourism demand. The evidence proposes that disregarding the intrinsic nonlinearities may misinform inference. The estimated NARDL model affirmed long-run negative and significant effect of CO₂ emissions on tourism demand, while institutional quality was positively associated with tourism demand. Furthermore, the findings of the study also suggested long-run asymmetric relationship between oil prices, exchange rate, inflation, and tourism demand.     

Fads and the Crash of '87

This paper examines changes in return-generating processes before and after the crash of '87. We find that the process for daily returns of size-sorted portfolios changed from an ARMA(1, 2) in the pre-crash period to a MA(1) in the post-crash period. The change is explained by a “fads” model similar to that proposed by Poterba and Summers [17]. The analysis suggests that the crash may have been related to speculative fads that prevailed prior to the crash. The fads component in stock prices then disappeared after the crash. Other possible explanations are also discussed.     

ESTIMATION BIAS IN REGIONAL INPUT-OUTPUT MODELS USING SECONDARY DATA*

Regional input-output models are widely utilized in policy oriented research relating to regional economic growth and development problems. National coefficients are frequently used in conjunction with existing secondary data to estimate regional input-output models, with regional exports and regional imports being estimated on net or residual basis. This paper illustrates and clarifies the nature of inaccuracy that may exist in trade, technical and interdependence coefficients and multipliers when this technique is utilized. Methods of improving regional estimates are suggested Les modéles régionaux interindustriels sont souvent utilisés dans le cas de recherche pour une politique concernant les problèmes de développement el de progrès économique dans une région. Les coefficients nationaux sont souvent employés en connection avec les données secondares existantes pour estimer les modèles, régionaux interindustriels, avec ?exportation régionale et ?importation régionale qui sont évaluées sur une base nette ou résiduelle. Cette étude met au jour et clarifie la nature de ?inexactitude technique qui peut exister dans le commerce, et ?interdépendance des coefficients et des multipliants on se sen de cette technique. On donne des méthodes pour améliorer ?évaluation des estimations régionales.     

Planning capital-labor substitution and intertemporal equilibrium with a non-linear multi-sector growth model

A non-linear multi-sector model, postulating sectoral production functions and price-responsive demand functions linked around an input-output matrix in a general equilibrium framework, is used to simulate capital-labor substitution on a growth path characterized by intertemporal equilibrium. It demonstrates how the ‘temporary equilibrium’ or ‘sequential temporary equilibrium’ form of models that allow substitution can be extended into an intertemporally indecomposable equilibrium model without abandoning interaction between prices and quantities in the determination of technology and demand. The model is applied to the analysis of the impact of changes in real-wage growth on the characteristics of the equilibrium growth path of the Turkish economy with special attention given to the employment problem.     

Uncertainty Resolution and Strategic Trade Policy in Oligopolistic Industries

This paper investigates a government's choice of strategic trade policy when the domestic firm observes a private noisy signal about the stochastic market demand while in competition with a rival firm. The government chooses between quantity controls and subsidies to maximize profits of the domestic firm. Assuming that firms compete à la Cournot in a third country, it is shown that the optimal trade policy depends not only on demand uncertainty but also on the predictability of the true market demand by the firms.     

Is corporate social responsibility sufficient enough to explain the investment by socially responsible funds?

I propose an explanation for investment decisions by socially responsible investment funds (SRI) on the firms with higher corporate social responsibility (CSR). Different from the previous literature, I use a unique and comprehensive measure that considers both firm CSR ratings and fund CSR perception. I show SRI mutual funds increase their ownership about 15 % for one unit increase in the firm CSR score when those funds are highly sensitive to CSR. This finding is more pronounced for employee relations and society areas of CSR. The results also hold for a broader range of mutual funds. While industry concentration does not have influence on the fund investment, SRI funds particularly choose socially responsible firms operating in construction, transportation, personal services, and financial sector. I show the funds with CSR sensitivity underperform the market in general and fail to improve their portfolio performance after they invest in the firms with high CSR.     

Influence of Leadership on Job Satisfaction: The Moderating Effects of Follower Individual‐Level Masculinity–Femininity Values

The current study examined whether employee individual‐level masculinity–femininity values moderate the relationship between leadership styles (structural, human resource, political, and symbolic) and employee job satisfaction. Overall, the research provided support for the impact of individual‐level masculinity–femininity on follower reactions to various leadership behaviors. The findings indicated that followers who scored high on feminine orientation perceived a weaker relationship between all leadership behaviors and job satisfaction. Followers with more masculine values associated more perceptions of job satisfaction with human resource, political, and symbolic leadership and viewed leaders' structural behaviors as less important for satisfaction at work.     

Type-2 TOPSIS: A Group Decision Problem When Ideal Values are not Extreme Endpoints

In the traditional TOPSIS, the ideal solutions are assumed to be located at the endpoints of the data interval. However, not all performance attributes possess ideal values at the endpoints. We termed performance attributes that have ideal values at extreme points as Type-1 attributes. Type-2 attributes however possess ideal values somewhere within the data interval instead of being at the extreme end points. This provides a preference ranking problem when all attributes are computed and assumed to be of the Type-1 nature. To overcome this issue, we propose a new Fuzzy DEA method for computing the ideal values and distance function of Type-2 attributes in a TOPSIS methodology. Our method allows Type-1 and Type-2 attributes to be included in an evaluation system without compromising the ranking quality. The efficacy of the proposed model is illustrated with a vendor evaluation case for a high-tech investment decision making exercise. A comparison analysis with the traditional TOPSIS is also presented.     

The effect of foreign ownership restrictions on stock price dynamics

The Effect of Foreign Ownership Restrictions on Stock Price Dynamics. —This paper uses Finnish data to explore the impact of foreign ownership restrictions on the dynamic properties of domestic stock prices. These restrictions create unrestricted stocks (foreign and domestic ownership) and restricted stocks (domestic ownership). Unrestricted share prices are significantly more volatile than those of restricted shares but their means are not significantly different from each other. The returns on the two types of shares are found to be generated by an error correction model. These results support the hypothesis that the unrestricted share prices tend to overshoot relative to equilibrium with the arrival of new information.     

Analyzing the resource pull effects of devaluation under exchange control

This paper analyzes the resource pull effects of a discrete change in the exchange rate under conditions of exchange control and import rationing. A devaluation leads to contraction rather than expansion in import substituting subsectors if the predevaluation situation is characterized by effective inport rationing. The argument is illustrated using a multi-sector model of the Turkish economy.