Whenever industrial plants consume power and heat there is a need to consider energy efficiency investment on a cogeneration (CHP) plant. We investigate economic incentives influencing the adoption of energy saving technology by industry, namely, CHP in UK and Dutch manufacturing sectors. Our analysis is based on an empirical model by the application of cross sectional time series econometric m...

Most existing econometric models such as ARCH(q) and GARCH(p,q) take into account heteroskedasticity (non-stationarity) of time series. However, the original ARCH(q) and GARCH(p,q) models do not take into account the asymmetry of the market’s response to positive and to negative changes. Several heuristic modifications of ARCH(q) and GARCH(p,q) models have been proposed that take this asymmetry...

This paper presents an econometric model that combines macroeconomic time series data with historical series relating to political instability in Israel during the Intifada period, in order to provide a conservative estimate of the extent to which variations in economic performance over time have a political explanation. Political instability is found to have a substantial effect on the cyclica...

The few existing empirical studies of U.S.-Japan trade agreements have relied primarily on descriptive statistics or univariate time series methods. We conduct a more powerful test by evaluating agreements in the context of well-specified econometric models. Consistent with trade theory, import demand is modeled as a cointegrating relationship with income and relative price variables, where a t...

This paper presents the theoretical development of new threshold autoregressive models based on trended time series. The theoretical arguments underlying the models are outlined and a nonlinear economic model is used to derive the speci cation of the empirical econometric models. Estimation and testing issues are considered and analysed. Additionally we apply the models to the empirical investi...