“…There are different views on the long-term and short-term effects of interest rates on stock prices. Many scholars determine that the effect of interest rate adjustment on stock price is only produced with difficulty during the short term (Dabbous & Tarhini, 2021;Holston et al, 2017;Rafay & Farid, 2019). Rabushka and Kress (2019) offer a comparative analysis of stock prices in the U.K., the U.S., Japan, Hong Kong, and mainland China.…”
Whether a stock market should matter or not when monetary policy is concerned seems to be a controversial issue. The purpose of this study is to indicate whether the central bank should use monetary policy to help the stock market or not. Based on macroeconomic data such as interest rate and the stock market, we adopt a novel Bayesian time-varying regression model and determine that the impact of interest rate changes on stock returns varies over time in China, after controlling various macroeconomic factors. Although on average interest rates negatively impact stock price returns, they tend to have an abnormal positive effect at market high points, following a time-varying dynamic pattern. Surprisingly, during periods of overheated economic development, an increase in interest rates cannot suppress the rise in stock prices. Therefore, policymakers need to pay attention when accelerating the marketisation of interest rates and initiating the preventive role of timely and strategic adjustment of interest rates.
“…There are different views on the long-term and short-term effects of interest rates on stock prices. Many scholars determine that the effect of interest rate adjustment on stock price is only produced with difficulty during the short term (Dabbous & Tarhini, 2021;Holston et al, 2017;Rafay & Farid, 2019). Rabushka and Kress (2019) offer a comparative analysis of stock prices in the U.K., the U.S., Japan, Hong Kong, and mainland China.…”
Whether a stock market should matter or not when monetary policy is concerned seems to be a controversial issue. The purpose of this study is to indicate whether the central bank should use monetary policy to help the stock market or not. Based on macroeconomic data such as interest rate and the stock market, we adopt a novel Bayesian time-varying regression model and determine that the impact of interest rate changes on stock returns varies over time in China, after controlling various macroeconomic factors. Although on average interest rates negatively impact stock price returns, they tend to have an abnormal positive effect at market high points, following a time-varying dynamic pattern. Surprisingly, during periods of overheated economic development, an increase in interest rates cannot suppress the rise in stock prices. Therefore, policymakers need to pay attention when accelerating the marketisation of interest rates and initiating the preventive role of timely and strategic adjustment of interest rates.
“…Evidence suggested that both social and physical characteristics of the neighbourhood environment can influence the residents' daily life and their social interactions [11]. Sustainability debates are no longer limited to the environmental dimension, but may also incorporate economic [12] and social dimensions [13]. Although numerous studies have investigated the neighbourhood environment and individuals' health among residents, research focusing on the effect of neighbourhood characteristics on social participation through formal and informal social roles is limited [14].…”
Neighbourhood safety represents an important topic of study to illustrate the reasons behind the increases in crime and mitigate its effects in neighbourhoods. This study examines how the social and environmental features of neighbourhoods may influence the social sustainability of residents based on the assumption that the perception of safety and social cohesion mediates the effects of neighbourhood environment on social sustainability. A quantitative method was employed to collect data from residents in a low-rise residential area in Penang, Malaysia. The results of structural equation modelling (SEM) indicated the positive and significant effect of neighbourhood accessibility on perceived disorder, whilst the effect of accessibility on social cohesion was negative. Disorders may comprise social and physical disorders, and may have a negative effect on perception of safety, but not on social cohesion. The relationship between disorders and social sustainability is serially mediated by the perception of safety and social cohesion. This implies that those who perceived high disorderliness in a neighbourhood environment reported a lower level of perception of safety, social cohesion and lower levels of social sustainability. Attempts need to be made to reduce neighbourhood disorderliness to pave the way for 2030 Agenda goals implementation.
“…However, scholars of the induced innovation and the biased technical change were concerned about the endogeneity of the direction of technical change. The representative literature mainly includes Arrow et al (1961), Kennedy (1964), Acemoglu (1998Acemoglu ( , 2002Acemoglu ( , 2003Acemoglu ( , 2007, Acemoglu et al (2012), and other studies on induced innovation and biased technical change (Dabbous & Tarhini, 2021;Hu et al, 2020;Kijek & Kijek, 2019;Łukasz & Grabowski, 2019;Mushtaq et al, 2020;Philipson, 2020;Shah et al, 2020;Tiberius et al, 2021).…”
Research on the endogeneity of directed technical change is very interesting and meaningful. If the direction of technical change is endogenous, policy makers can adjust the technical change value of factors according to specific purpose. We establish a theoretical model of the direction of technical change, relative price of factors and international trade under nested and non-nested CES production functions. We use mature measurement methods such as the unit root test and cointegration analysis to test the theoretical model in practice. We find that the direction of technical change is endogenous in China. The change in the relative price of factors in China causes a technical change in the same direction. Meanwhile, international trade intensifies and accelerates the labour augmenting technical change, but blocks the pace of capital augmenting technical change. Under a substitution elasticity of less than one, technical change is biased toward energy and capital in China, and this bias is brought about by the decrease in their relative price and international trade.
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