Testing for unit roots in three-dimensional heterogeneous panels in the presence of cross-sectional dependence

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Department of Economics University of Macedonia Greece June 2013Abstract This paper provides evidence that unemployment rates across US states are stationary and therefore behave according to the natural rate hypothesis. We provide new insights by considering the effect of key variables on the speed of adjustment associated with unemployment shocks. A highly-dimensional VAR analysis of the half-lives associated with shocks to unemployment rates in pairs of states suggests that distance between states and vacancy rates respectively exert a positive and negative influence. We find that higher homeownership rates do not lead to higher half-lives. When the symmetry assumption is relaxed through quantile regression, support for the Oswald hypothesis through a positive relationship between homeownership rates and half-lives is found at the higher quantiles.JEL Classification: E240, J600, F150, R100.Keywords: Unemployment; market integration; speed of adjustment. * We would like to thank three anonymous referees for their useful comments and suggestions on an earlier version of the paper. Any remaining errors are our own responsibility. †

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“…[19]. To account for cross section dependence, we perform an autoregressive-based bootstrap, implemented as described in Hadri and Rao [22].…”

Section: Us Unemployment Data and Their Time-series Propertiesmentioning

confidence: 99%

Modelling the behaviour of unemployment rates in the US over time and across space

Holmes¹,

Otero²,

Panagiotidis³

2013

Physica A: Statistical Mechanics and its Applications

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Analyzing three Zeros (zero poverty, unemployment, and carbon emissions) in Asia and the Pacific region: Assessment of sustainable development goals through the STIRPAT model

Khan

2024

Sustainable Development

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Poverty, unemployment, and environmental degradation are growing issues and significant challenges to sustainable development. They are visible obstacles to achieving the United Nations Sustainable Development Goals (SDGs). The three ZEROS (zero net carbon emissions, zero poverty, and zero unemployment) within the SDGs have not yet been thoroughly explored and need to be empirically examined. This is the primary aim of this study, which focuses on 10 developing countries in Asia & the Pacific. The study utilized panel data from 1997 to 2021 and a stochastic impact by regression on population, affluence, and technology (STIRPAT) model and implemented the second‐generation panel unit root test, cross‐sectional augmented autoregressive distributed lags (CS‐ARDL), panel fully modified ordinary least squares (FMOLS) approaches, and panel Granger‐causality test. The empirical results of the CS‐ARDL approach vindicate that poverty contributes to the environmental deterioration proxied by CO2 emissions, while the unemployment rate inhibits the environmental damage. The other regressors, namely national income by real gross domestic product per capita, energy use, and population are harming the environment, while technological innovation and digitalization reduce environmental degradation. These results are re‐corroborated by implementing the FMOLS estimator. The Granger causality results reveal a bidirectional causality between poverty and environmental degradation. Therefore, it is essential for management authorities to implement pragmatic public policies that focus on sustainable development strategies, such as investing in education and stimulating sustainable economic growth. This will help to reduce unemployment, improve living standards, decrease poverty, and ultimately achieve the Three Zeros Club initiative and sustainable development goals.

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The impact of income inequality on environmental quality: a sectoral-level analysis

Alataş

Akin

2022

Journal of Environmental Planning and Management

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There is a growing literature on the relationship between income inequality and emissions.However, these studies ignore the sectoral level differences in carbon emissions. We argue that the environmental effect of inequality might vary at the sectoral level. Our main purpose is to contribute to this growing literature on the inequality-emissions nexus by considering sectorallevel differences. For that purpose, we focus on five different sectors: power industry, buildings, transport, other industrial combustion, and other sectors. To specify our model, we augment the environmental Kuznets curve framework with income inequality by controlling the effect of globalization and urbanization. Our country sample consists of 28 OECD economies for the period between 1990 and 2018. Methodologically, we apply the second-generation panel unit root, cointegration tests, and estimators, which produce robust results against the cross-sectional dependence. Our findings reveal that not only income but also income inequality is a crucial factor in explaining changes in sectoral emissions. While rising income inequality increases carbon emissions from the power and building sectors, this finding turns out to be negative for the transport, other industrial combustion, and other sectors. Our results suggest that policies aimed at reducing carbon emissions should be designed at the sectoral level.

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Testing for unit roots in three-dimensional heterogeneous panels in the presence of cross-sectional dependence

Cited by 5 publications

References 14 publications

Modelling the behaviour of unemployment rates in the US over time and across space

Modelling the behaviour of unemployment rates in the US over time and across space

Analyzing three Zeros (zero poverty, unemployment, and carbon emissions) in Asia and the Pacific region: Assessment of sustainable development goals through the STIRPAT model

The impact of income inequality on environmental quality: a sectoral-level analysis

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