Stochastic analysis of the economic growth of OECD countries

Fuente‐Mella, Hanns de la; Vallina-Hernández, Ana María; Fuentes-Solís, Rodrigo

doi:10.1080/1331677x.2019.1685397

Cited by 25 publications

(14 citation statements)

References 53 publications

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“…Maximum likelihood (ML) and generalized least squares (GLS) estimators are compared with the ordinary least squares (OLS) estimator in terms of robustness [ 45 ]. If the form of the heteroscedasticity is correctly specified, then the ML and GLS estimators are more efficient statistically than the OLS estimator.…”

Section: Modeling and Methodologymentioning

confidence: 99%

Breakpoint Analysis for the COVID-19 Pandemic and Its Effect on the Stock Markets

Chahuán-Jiménez

Rubilar

Fuente‐Mella

et al. 2021

Entropy

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In this research, statistical models are formulated to study the effect of the health crisis arising from COVID-19 in global markets. Breakpoints in the price series of stock indexes are considered. Such indexes are used as an approximation of the stock markets in different countries, taking into account that they are indicative of these markets because of their composition. The main results obtained in this investigation highlight that countries with better institutional and economic conditions are less affected by the pandemic. In addition, the effect of the health index in the models is associated with their non-significant parameters. This is due to that the health index used in the modeling would not determine the different capacities of the countries analyzed to respond efficiently to the pandemic effect. Therefore, the contagion is the preponderant factor when analyzing the structural breakdown that occurred in the world economy.

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Section: Modeling and Methodologymentioning

confidence: 99%

Breakpoint Analysis for the COVID-19 Pandemic and Its Effect on the Stock Markets

Chahuán-Jiménez

Rubilar

Fuente‐Mella

et al. 2021

Entropy

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“…In other ways, the study integrates communes from the northern, central and southern macro-zones of the national territory. A cross-sectional econometric regression model was developed to explain and predict the effect over the municipal efficiency measured by Quality of Life Index (QLI) [33][34][35][36]. This is validated by the assumptions of the residual before proceeding with the second objective, which is the estimation and interpretation of results [36,37].…”

Section: Methodsmentioning

confidence: 99%

Efficiency of the City Councils Using Cross-Sectional Model: Challenges in Times of Change and Political Tension

Gómez¹,

Fuente‐Mella²,

Alvarado³

et al. 2021

Linear and Non-Linear Financial Econometrics -Theory and Practice

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The efficiency of city councils is a matter of concern in public discussion in Chile, due to the growing political relevance that citizens demand of them for social and economic management, in the face of the effects of the pandemic and recent social unrest. Despite the marked historical centralization of power in the capital city, the efficiency of the Chilean municipalities will be key to improving the quality of life of the communities, especially in times of political tension, greater social needs and discredit toward national institutions, not well the local ones. A crosssectional econometric regression model was developed to explain the determinants of the efficiency of the municipalities and identify the variables that have the greatest impact on said efficiency. City councils that are regional capitals with more than 50,000 inhabitants were selected for this study.

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“…This very model had been used in a study of economic growth in OECD countries. [7]. In equation 1the inefficiency component (u it ) of the error term is the log difference between the maximum and the actual output, therefore u it is the percentage by which actual output can be increased using the same input if production is fully efficient (Kumbhakar and Wang, 2015).…”

Section: Stochastic Frontier Analysis With Gdpcu and Gdpcon Covariancesmentioning

confidence: 99%

“…The Impact of GDP on Cross-Country Efficiency in Wealth Maximization: a Joint… 103 Relevant literature shows that the determinants of economic development were presented and a ranking of efficiency was obtained for all OECD economies throughout the period of analysis [7]. A higher level of market dynamics increases productivity, while firm size and market concentration seem to decrease industry productivity [8].…”

Section: Introductionmentioning

confidence: 99%

The Impact of GDP on Cross-Country Efficiency in Wealth Maximization: a Joint Analysis Through the Stochastic Frontier and Generalized Method of Moments

Rosid¹,

Xuefeng²,

Hossain³

et al. 2021

Advances in Management and Applied Economics

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Wealth maximization is still the principal objective of a corporation and income plays a pivotal role in this regard. Taking this to the country context, wealth maximization can be a more refined objective alongside GDP growth. Considering GDP as the key wealth maximizer for a nation, the present work was undertaken to determine cross-country wealth efficiency and its determinants based on GDP covariates. The relationship between aggregate net wealth and GDP of 106 different countries for a period of 2009 to 2018 were analyzed to estimate annual incremental wealth efficiency based on their GDP covariates using input-output stochastic frontier analysis (SFA). Further, the determinants of incremental wealth efficiency were identified using multiple regression models. The SFA analysis shows significant negative impact of GDP on wealth maximization efficiency, like the law of diminishing marginal return to scales advocates. With the increase of GDP of a country, its marginal efficiency in wealth maximization decreases though aggregate wealth increases. The robust regression models show that imports, broad money and exchange rate undermine the wealth efficiency of a country and country’s past efficiency positively influences the subsequent year’s efficiency. These findings are expected to open new horizons for policymakers in policy analyses. JEL classification numbers: E1, E2, F4 Keywords: Wealth Maximization, GDP, SFA, Technical Efficiency, GMM, Driscoll Kraay.

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Stochastic analysis of the economic growth of OECD countries

Cited by 25 publications

References 53 publications

Breakpoint Analysis for the COVID-19 Pandemic and Its Effect on the Stock Markets

Breakpoint Analysis for the COVID-19 Pandemic and Its Effect on the Stock Markets

Efficiency of the City Councils Using Cross-Sectional Model: Challenges in Times of Change and Political Tension

The Impact of GDP on Cross-Country Efficiency in Wealth Maximization: a Joint Analysis Through the Stochastic Frontier and Generalized Method of Moments

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