Threshold effects of financial stress on monetary policy rules: A panel data analysis

Threshold Effects of Health on Economic Growth in Sub-Saharan African Countries: Evidence from a Dynamic Panel Threshold Model

“…Finally, we envisage the possibility of the existence of a cross-sectional dependence in the error terms of the model (2). As a final robustness check, we use a factor-augmented dynamic panel threshold regression model with estimated common components to deal with cross-sectional dependence (Floro and van Roye, 2017). Indeed, in the dynamic panel threshold regression literature, error cross-sectional dependencies across countries are most of the time neglected.…”

“…Indeed, in the dynamic panel threshold regression literature, error cross-sectional dependencies across countries are most of the time neglected. Yet, the presence of cross-sectional dependence can lead to biased estimators, consistency problems or spurious regression (Phillips and Sul, 2003;Bai, 2009 Moreover, assuming independence could make one believe that there are threshold effects or non-linear effects of health on economic growth while it may not be the case.We usePesaran (2004)'s cross-sectional dependence test on the residuals the dynamic panel threshold (model 2), as in Floro and van Roye (2017). The result of the test is presented in Table 7.…”

“…The author argued that this method is a quick and effective approach of extracting common factors. In fact, the common correlated coefficients estimator (CCE) approach proposed by Pesaran (2006) requires an a priori value of the threshold variable, which would not be suitable in our analysis given that our threshold values are determined endogenously (Floro and van Roye, 2017). The question that arises now is the number of factors than should be incorporated in the regression.…”

Decrease in urban energy intensity: Is there a role for urban spatial structure?

“…As proven by existing literature, urban spatial agglomeration can bring about agglomeration economies. [30][31][32] First, the model needed to set the threshold variable and the indicator function. 27,28 Therefore, to effectively analyze the different effects of various stages of urban spatial structure on urban energy intensity, this paper adopts the threshold panel analysis model.…”

“…29 This model can effectively classify the core variables and their phased effects on dependent variables, which has been successfully used in many fields of research. [30][31][32] First, the model needed to set the threshold variable and the indicator function. The choice of the threshold variable was based on both theoretical and empirical bases.…”