Panel Simultaneous Equation Research Articles

Analysis of Social, Economic and Population in Central Java Using the Dynamic Data Panel Simultaneous Equation Model

A single equation model that is often used ignores the interdependence between response variables. Frequently encountered variables that have a two-way relationship. These interrelated two-way relationships can be summarized in a simultaneous equation model system. There is a relationship between variables which are in fact dynamic. In the system model of simultaneous equations with dynamic panel data, each structural equation is a dynamic panel data regression equation. The estimation of using Ordinary Least Square (OLS) in the dynamic panel data model results in biased and inconsistent predictors because there is a lag of the dependent variable that correlates with the error. First difference in dynamic panel models is used to eliminate individual effects. Instrument variables are needed, namely variables that do not correlate with errors. Therefore, dynamic panel data models are more suitable to be used in analyzing poverty and social change. From the simultaneous equation model obtained, the dominant factors affecting the level of poverty in Central Java Province are the unemployment rate, Human Development Index, labor force participation rate, population, and Gross Regional Domestic Product.

The democracy and economic growth nexus: do FDI and government spending matter? Evidence from the Arab world

Abstract The purpose of the paper is to examine the direct and indirect links between democracy and economic growth. To do so, the authors estimate a dynamic panel simultaneous equations model on a sample of 16 Arab countries during the period 2002–2013. This study focuses on two particular channels through which democracy affects growth, namely FDI inflows and public consumption expenditure. The results show that there is no clear relationship between democracy and economic growth in the Arab countries, which confirms the skeptical approach. The ambiguity of this relationship can be explained by the fact that democracy promotes growth indirectly by stimulating FDI inflows and hinders growth by generating higher public consumption expenditure.

Identification and estimation of spatial dynamic panel simultaneous equations models

This paper investigates the identification and estimation of spatial dynamic panel simultaneous equations models with simultaneous effects, spatial effects, and time lagged effects. The model in this paper explicitly models interactions among different economic variables with simultaneous effects. Spatial interactions are presented by spatial weight matrices and, in addition to dynamics in space and time, we allow both individual and time fixed effects. For estimation, we study asymptotic properties of quasi-maximum likelihood estimators with large spatial units n and time periods T and IV-based estimators with large or small T. Finite sample properties of these estimators are studied using Monte Carlo experiments.

EVOLUTION OF ENVIRONMENTAL REGULATION STRATEGY AMONG LOCAL GOVERNMENTS AND ITS IMPACT ON REGIONAL ECOLOGICAL EFFICIENCY IN CHINA

An evolutionary game of environmental regulation among local governments in China was established in this paper, and we analyzed the dynamic evolution rules of the environmental regulation strategy among local governments as well as the impact of environmental regulation on regional ecological efficiency in China by using the spatial panel simultaneous equations based on the panel data of various regions in China from 2007 to 2014. The research results show that the local government will adjust their own strategies during the environmental regulation strategy game constantly, and the external effect does not affect the choice of government s environment regulation strategy, and the government will choose their environmental regulation strategy by measuring the gain and cost of the environmental regulation under the condition with no constraint mechanism, and the government will not be intent to perform the environmental regulation, and it will lead to the phenomena of prisoner's dilemma. And the empirical research result shows that there exists the behavior of mutual imitation during the process of establishment and implement of environmental regulation and the environmental regulation has obvious restrictive function on the local ecological efficiency in China.

패널연립방정식을 이용한 오피스 시장 예측에 관한 실증연구

패널연립방정식을 이용한 오피스 시장 예측에 관한 실증연구

Simulated Effects of the Location of High-Speed Rail Stations on Land Development: Case Study of the Lisbon Metropolitan Area, Portugal

This paper studies the effects of high-speed rail (HSR) on land cover change in the Lisbon metropolitan area (LMA) in Portugal according to a bilevel cellular automata/agent-based modeling framework. The model incorporates spatial mixed logit models at the local level and panel simultaneous equations models at the regional level. The regional submodel generates socioeconomic activities that are input into the local submodel for land development. The regional activities are also influenced by the local outputs. A backcasting simulation is executed to validate the model on the basis of the actual land cover change from 1991 to 2011. Five scenarios are then designed according to the numbers and the locations of HSR stations in the LMA. The simulation shows that the unbuilt land covers are largely developed by 2031, regardless of the inauguration of HSR. Under the scenarios with HSR, because of the dramatic improvement of accessibility, the land cover change speed is largely accelerated. With an additional station on the southern bank of the Tagus River, the overall accessibility does not further increase from the scenario with only one HSR station. Thus, the total land development remains similar. The enhanced access to the HSR service from the additional station contributes to the redistribution of the land cover change activities by moving them slightly southeastward. The results highlight the effect that station location could have on land cover change, pointing out the importance of carefully choosing the location.

Driving forces of economic growth in the second decade of transition

This paper examines driving forces of economic growth in the second transition decade, by testing which determinants from the first decade remain dominant, and which new factors appear in explaining growth. To this end a panel simultaneous equation model is estimated based on a sample of 27 transition countries in the period 1999- 2009. According to the main findings of the paper initial conditions do not play a role in determining economic growth in the second decade, but macroeconomic stabilization and structural reforms still matter. However, in contrast to the first decade, the overall impact of structural reforms is not positive, indicating that difficult progress with reforms in the second decade could slow down economic growth. Moreover, EU membership seems to have the additional effect of slowing down the growth of the accessing countries, meaning that once a transition country becomes an EU member it has a similar growth path to other EU countries in terms of lower growth rates. All this indicates that only countries that undertook fast reforms in the early phase of transition experienced significant benefits from reforms, achieving higher levels of economic development and becoming closer to developed EU countries. Finally, investments and openness of the economy appear as new important determinants of growth.