Article history: Received 1 July 2010 Received in revised form 6 March 2013 Accepted 6 March 2013 Available online 16 March 2013 We investigate the transmission mechanism of monetary policy in China over the past decades with emphasis on the post-Asian crisis period. A factor-augmented VAR method is used to study the effectiveness of monetary policy instruments in stabilizing the Chinese econom...

The linear and nonlinear seemingly unrelated regression problem with general error distribution is analyzed using recent likelihood theory that arguably provides the definitive distribution for assessing a scalar parameter; this involves implicit but well defined conditioning and marginalization for determining intrinsic measures of departure. Highly accurate p-values are obtained for the key d...

This paper tests for the existence of contagion during the 1997/98 Asian crisis. We interpret contagion as a significant change in the way that countryspecific shocks are transmitted across international stock markets. Using the full-information framework of Favero and Giavazzi (2002) we find that the null hypothesis of no contagion is widely rejected. We also uncover evidence of an asymmetric ...

This paper investigates how fuel economy efficiency affects household vehicle mileage traveled and its distribution. Using a detailed micro-level data of National Household Travel Survey 2001 and 2008, we estimated a recursive structural model for joint determination of vehicle fuel efficiency choice and vehicle mileage traveled each year. We further studied the distributional effects on vehicl...

A copula is best described, as in Joe (1997), as a multivariate distribution function that is used to bind each marginal distribution function to form the joint. The copula parameterises the dependence between the margins, while the parameters of each marginal distribution function can be estimated separately. This is a brief introduction to copulas and multivariate dependence issues within a h...

Recreation is one of the ecosystem’s secondary values of a well conserved natural ecosystem, associated with the direct use individuals make of these natural assets. In this paper we define and estimate the total economic recreation value to visitors of a particular natural area, a national park. An on-site individual observation Travel Cost Model, Count Data distributions, and a version of hyp...

A key concern in policy debates over youth smoking is whether preventing children from smoking will stop them from smoking as adults or merely defer initiation into smoking. This paper estimates smoking status in late adolescence viewing smoking at age 14 as an endogenous “treatment” on subsequent smoking, an approach which disentangles causation from unobserved heterogeneity and allows the mod...

This analysis is a straightforward implementation of both long-run and short-run identifying or overidentifying restrictions on a vector error correction model in the “structural VAR” framework. The framework utilizes covariance restrictions, long-run multiplier restrictions, error correction coefficient restrictions, and restrictions on slope coefficients of the stimultaneous interactions in t...

Latent class, or finite mixture, modelling has proved a very popular, and relatively easy, way of introducing much-needed heterogeneity into empirical models right across the social sciences. The technique involves (probabilistically) splitting the population into a finite number of (relatively homogeneous) classes, or types. Within each of these, typically, the same statistical model applies, ...