The purpose of this study is to investigate the stability of money demand function in emerging countries using the annual data over the period 1987 to 2018. The panel data was analyzed applying both static and dynamic panel models. With the static panel analysis, the random effect method is found to be an appropriate model to determine the factors that affect money demand in emerging countries. The findings of random effect method reveal real income affect money demand positively while exchange rate and real interest rate influence money demand negatively. The results of dynamic panel approach show that real income has positive impact on broad money demand while exchange rate, real interest rate and inflation negatively influence broad money demand in the long-run. The dynamic panel approach confirms that inflation has a significant impact on money demand in addition to the variables found to significantly influence money demand with the random effect method of static panel approach. This implies that dynamic panel model better estimates the determinants of money demand function as compared to static panel model. The stability analysis of each country confirms stable money demand function. The error correction model reveals any deviation from the equilibrium is corrected each year in the selected emerging countries. Therefore, the monetary policy makers can incorporate the outcome of this study as additional input for the implementation of effective monetary policy in the selected countries of emerging economies.
The purpose of this study is to investigate the economic value of fish (Nile Tilapia) in Lake Hawassa and determine the factors affecting the households' willingness to pay for a quality improved fish product. The survey was conducted through face-to-face interview of 467 households consuming fish caught from the lake. The respondents were aware on the poor quality of the fish due to domestic and industrial effluents discharged into the lake. The consumers stated their preferences on quality improved fish product with the mean value of Birr 57.76 per kilogram, which was equivalent to USD3.20 per kilogram during the survey period. The analysis on the determinants of willingness to participate in the fish quality improvement program shows that education, annual income, frequency of fish consumption, marital status and multiple use of the lake influence the participation on the quality improvement program positively while family-size, residential-land and employee negatively influence the participation on the quality improvement program. The valuation of quality improved fish product shows that households who are aware of the poor quality of the lake, residential-land owners and those who earn high annual income are more likely to attach higher monetary value for the quality improved fish product. Therefore, identification of such variables and their relative importance in the valuation helps to obtain households who are willing to pay maximum level for the fish quality improvement.
The purpose of this study is to investigate the business cycle volatility of Turkish economy using the quarterly data over the period 1961:Q1 to 2018:Q4 and to determine the smoothing parameter, λ, of HP filter for annual frequency of observations. The macroeconomic variables such as import, investment and export are more volatile followed by government spending; while consumption and real GDP are less volatile. Price in Turkey is highly volatile, which is about four times as volatile as the average price volatility of South Africa, Japan and USA. Output, consumption and investment in Turkey are twice as volatile as the average volatility of South Africa, Japan and USA. Import and export are more volatile in emerging economies as compared to developed countries. The trend component of annual frequency with λ_annual=6.25 is practically identical to the trend component of the quarterly data with λ_quarterly=1600. In Turkish economy, investment, consumption, import, export, and government spending are procyclical; price and inflation are countercyclical; whereas, the share of government consumption in output is acyclical.
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