Simultaneous Equation Model Research Articles

Adoption of Innovative Energy Facilities in the Tertiary Sector Buildings: Exploring Interdependencies and Key Drivers

Innovative energy facilities, such as solar panels, heat pumps, and smart control ventilation, offer substantial opportunities to improve energy efficiency and environmental performance in the tertiary sector, aligning with green building objectives. This study aims to identify the key factors influencing the adoption of these facilities by small and medium-sized enterprise owners in the tertiary sector and to explore the interdependencies among them. To achieve this, we employed a stated choice experiment to assess preferences and decision-making by presenting respondents with multiple hypothetical scenarios, each containing alternatives described by varying attributes. A simultaneous equation model was used to analyze the key drivers of adoption and the interrelationships among these facilities. The results reveal that cost-related attributes and government incentives significantly impact the acceptance of energy facilities. Notably, while environmental responsibility is slightly associated with solar panel adoption, it shows no significant link with heat pumps or ventilation systems. Furthermore, we identified a bi-directional relationship between the adoption of solar panels and heat pumps, suggesting that acceptance of one positively influences the other. Conversely, a unidirectional relationship exists between ventilation and solar panels, where the adoption of ventilation positively influences solar panel adoption, but not the other way around. These findings contribute to a deeper understanding of decision-making processes in green building projects and provide valuable insights for policymakers and industry stakeholders aiming to promote sustainable energy solutions in the tertiary sector.

Institutional Quality and Economic Growth in the Energy Transition of MENA Countries

This paper investigates the energy transition in MENA region countries, emphasizing the pivotal role of institutional quality and its impact on economic growth. It explores the interactions between institutional quality, energy transition initiatives, and economic growth, aiming to understand how strong institutions can facilitate a successful transition. The empirical analysis employs a simultaneous equations model to identify institutional factors that can either support or hinder the energy transition and its influence on economic growth. The findings provide valuable insights for policymakers and economic stakeholders, underscoring the critical importance of robust institutions in driving the energy transition process and stimulating economic growth in the MENA region from 2000 to 2022.

OJT 및 Off-JT가 일학습병행 효과성에 미치는 영향

Objectives The purpose is to identify the determining factors by which OJT and Off-JT influence the effective-ness of work-learning dual system and to propose efficient strategies for the operation of OJT and Off-JT. Methods To do this, an analysis was conducted on survey data from 2,061 respondents, who were apprentice workers, based on the 2021 work-based learning performance evaluation data from the Korea Research Institute for Vocational Education & Training. Basic statistical analysis and correlation analysis were performed using STATA 17 version to analyze the determining factors of OJT and Off-JT that affect the effectiveness of Korean Work-Learning Dual Program. Additionally, a Two-Stage Least Squares (2SLS) analysis model, which is a type of simultaneous equations model, was employed. The independent variables for OJT include the extent to which OJT helps improve job performance ability, the competency of workplace instructors, lecture satisfaction, the level of OJT relative to current ability, and OJT satisfaction. For Off-JT, the independent variables include the extent to which Off-JT helps improve job performance ability, the competency of instructors, lecture satisfaction, the level of Off-JT relative to current ability, and Off-JT satisfaction. The outcome variable is the effectiveness of work-learning dual system. Results According to the analysis, first, OJT was found to have a positive impact on improving job performance ability, which contributes to the effectiveness of work-learning dual system. Second, Off-JT also showed a pos-itive effect on improving job performance ability, which is a key indicator of the effectiveness of work-learning dual system. Third, the determining factors influencing external evaluations of the effectiveness of Korean Work- Learning Dual Program include several Off-JT factors, such as the competency of instructors, lecture satisfaction, the level of Off-JT relative to current ability, and Off-JT satisfaction, as well as educational background (high school or associate degree) and participation types, including the Industry-Academia Integrated Apprenticeship School and IPP-type work-based learning system. Conclusions The conclusions of this study are as follows: First, OJT allows apprentice workers to receive custom-ized training tailored to the company’s needs, creating an environment where they can immediately apply what they have learned to their work. As a result, the more satisfied the workers are with OJT, the more effective the work-learning dual system will be. Second, Off-JT can enhance job performance by providing theoretical supple-mentation and focusing on case studies from other companies, which helps improve the adaptability of apprentice workers to the workplace. Therefore, higher satisfaction with Off-JT will also lead to increased effectiveness of work-based learning programs. Third, since the primary goal of work-based learning is to cultivate talent that meets the needs of companies, it is important to set essential competency units required by the industry and re-flect the demands of the field. Reducing the weight of written exams while increasing the proportion of interviews and practical assessments related to on-the-job learning would positively impact the external evaluation of both OJT and Off-JT within work-learning dual system. Therefore, there is a need to develop NCS materials centered around learning companies, as well as company-specific training materials, and to structure training content ac-cordingly to better align OJT and Off-JT with the practical needs of the companies.

The effect of education level and unemployment rate on poverty in Deli Serdang regency

Poverty is a complex problem that is multidimensional and affects many people around the world, including Indonesia. In Indonesia, poverty is still high, especially in underdeveloped rural and urban areas. Low education levels and high unemployment exacerbate poverty conditions as they affect access to decent work and adequate income. In Deli Serdang Regency, North Sumatra, despite having abundant natural resources, the poverty rate is still high. Expected solutions include improved access and quality of education, increased job opportunities, entrepreneurship promotion, access to better health and social services, and effective redistribution policies. This study aims to determine the influence of education, unemployment, HDI, and income on poverty in Deli Serdang Regency and to determine the influence of wages, consumption, and poverty on income simultaneously on income in Deli Serdang Regency. The approach used in this study is a quantitative approach sourced from secondary data in a time series, namely from 2013 to 2023. The data analysis model in this study uses a simultaneous equation model. The results of the simultaneity test showed that education had a positive and significant effect on poverty, while unemployment, HDI and income had a negative and insignificant effect on poverty. And poverty has a positive and significant effect on income, while consumption and wages have a negative and insignificant effect on income.

Do diverse crops or diverse market purchases matter more for women's diet quality in farm households of Mali?

Finding pathways to improve nutrition is vital to Mali. We apply a simultaneous equation model to test whether the diversity of crops grown on farms or local market purchases has a greater effect on the diet quality of 5930 farm women in Mali. Both on-farm crop diversity and the diversity of food sources purchased in local markets have strong positive associations with women's diet quality, but crop diversity effects are greater. A larger area share devoted to cereals reduces diet quality. Results are robust to the choice of diversity indicator. Market-based incentives at a regional and local scale could enhance on-farm crop diversity and stimulate both the production and trade of diverse food products in local markets: a win-win scenario.

Economic Growth and Environmental Quality: A Study on Mineral-Rich Provinces in Indonesia

Research Originality: This research focuses on Indonesia's mineral-rich provinces and offers originality through its comprehensive analysis of the bidirectional relationship between economic growth and environmental quality, using the Environmental Quality Index (EQI). Research Objectives: This study examines the relationship between economic growth and environmental quality in the Mineral Economy Provinces of Indonesia.Research Methods: The data used in this research is secondary data from 2015 to 2022. The analysis method employed is the simultaneous equation model using Two Stage Least Squares (2SLS).Empirical Results: The results show that in model 1, economic growth is significantly influenced by exogenous variables such as the environmental quality index, energy consumption, revenue sharing funds, investment, and population. In model 2, environmental quality is significantly influenced by exogenous variables such as GDP, mining output, energy consumption, and forest. Good environmental quality can enhance economic growth. Conversely, increased Economic growth can degrade environmental quality.Implications: The study's findings suggest that policymakers in Indonesia's mineral economy provinces should prioritize sustainable development to balance economic growth with environmental preservation.JEL Classification: Q43, Q50, Q56

Macroeconomic Implications of Oil Price Fluctuations: A Simultaneous Equation Analysis of Russia's Economic Performance and Policy Responses

This study uses a simultaneous equation model (SEM) to examine the relationship between oil price fluctuations and Russia's macroeconomic performance. It uses a comprehensive set of variables, including GDP growth, investment, export and consumption rates, exchange rates, and oil prices, to estimate the interactions between these variables. The study reveals significant findings on the macroeconomic impact of oil price fluctuations on Russia's economies, including short-term and long-term effects on GDP growth, inflation, and unemployment rates. It also examines the role of monetary policy in mitigating the adverse effects of oil price shocks on the economy. The study highlights Russia's vulnerability to oil price fluctuations, especially due to its heavy reliance on oil exports. It also examines the effectiveness of policy responses, such as fiscal measures and exchange rate interventions, in mitigating the impact of oil price shocks on Russia's macroeconomic stability. The findings provide valuable insights for policymakers and stakeholders, aiming to enhance economic resilience and stability in the face of oil market fluctuations.

Industrial Agglomeration, Land Consolidation, and Agricultural Energy Inefficiency in China: An Analysis Using By-Production Technology and Simultaneous Equations Model

Improving agricultural energy inefficiency is essential for achieving sustainable agricultural development and promoting major agricultural countries to achieve carbon peak and carbon neutrality goals. This paper analyzes agricultural energy inefficiency in China, using panel data from 30 provinces between 2000 and 2021. The by-production technology model is employed to measure and decompose inefficiency, and the simultaneous equations model and moderating effect model are utilized to study the impact mechanism of industrial agglomeration, land consolidation, and agricultural energy inefficiency. The findings reveal several key points: First, the average inefficiency of agricultural energy in China increased from 0.370 to 0.514, with economic inefficiency rising at a faster rate than environmental inefficiency. Second, agricultural industrial agglomeration serves to inhibit both agricultural energy economic inefficiency and environmental inefficiency, which, in turn, hampers the development of industrial agglomeration. This relationship shows heterogeneity across the eastern, central, and western regions, as well as between major and non-major grain production areas. Third, land consolidation—both nationally and specifically in the central, major grain-producing, and non-major grain-producing areas—effectively mitigates the deterioration of agricultural energy inefficiency caused by industrial agglomeration. In the eastern region, land consolidation can enhance the inhibitory effect of industrial agglomeration on energy inefficiency. This paper highlights the interconnections between industrial agglomeration, land consolidation, and agricultural energy inefficiency, providing valuable policy references for the development of sustainable agriculture and the proactive and steady advancement of carbon peak and carbon neutrality goals.

Interplay between Network Position and Knowledge Production of Cities in China Based on Patent Measurement

The urban knowledge network in China has undergone in-depth development in recent decades, intimately connecting the position characteristics of cities in the knowledge network to their knowledge production performance. While existing research focuses predominantly on the unidirectional relationship between network position and the knowledge production of cities, there is a notable dearth of studies exploring the bidirectional relationship between the two constructs. By proposing a conceptual framework, this paper empirically examines the interplay between network position and knowledge production of cities through simultaneous equation models. The results revealed a mutually reinforcing relationship between network position and knowledge production, and this relationship exhibits heterogeneous characteristics and spillover effects. Specifically, cities in the periphery block and the central-western region benefit more from the effect of network position on knowledge production, while cities in the core block and the eastern region benefit more from the effect of knowledge production on network position. Moreover, the interactive effect between network position and knowledge production of cities is significantly affected by the network position characteristics and knowledge production performance of their neighboring cities in geographically adjacent regions and relationally adjacent regions. These findings enhance the understanding of urban network externalities and the connotations of the knowledge production function.

LINKAGES AMONG CARBON DIOXIDE (CO2) EMISSION, HEALTH SPENDING AND ECONOMIC GROWTH: A STUDY SAARC MEMBER COUNTRIES

The present world is on the good track to achieve economic growth though it results in huge environmental degradation. Hence, such economic growth poses serious detrimental impacts on human health, and it causes to increase in healthcare spending. Therefore, the present study aims to depict the relationship among carbon dioxide (CO2) emission, healthcare spending and economic growth for the South Asian countries (SAARC member countries) covering the period 1980-2014. The Dynamic Simultaneous-equation Model is fitted with the data set which is estimated by Generalized Method of Moment for investigating the causal relationship among these variables. The empirical results reveal bidirectional causality between carbon dioxide (CO2) emission and economic growth; and between economic growth and health spending. The results of the study also indicate unidirectional causality from carbon dioxide (CO2) and health spending in case of many SAARC member countries.

Estimation of simultaneous equation models by backpropagation method using stochastic gradient descent

Simultaneous equation model (SEM) is an econometric technique traditionally used in economics but with many applications in other sciences. This model allows the bidirectional relationship between variables and a simultaneous relationship between the equation set. There are many estimators used for solving an SEM. Two-steps least squares (2SLS), three-steps least squares (3SLS), indirect least squares (ILS), etc. are some of the most used of them. These estimators let us obtain a value of the coefficient of an SEM showing the relationship between the variables. There are different works to study and compare the estimators of an SEM comparing the error in the prediction of the data, the computational cost, etc. Some of these works study the estimators from different paradigms such as classical statistics, Bayesian statistics, non-linear regression models, etc. This work proposes to assume an SEM as a particular case of an artificial neural networks (ANN), considering the neurons of the ANN as the variables of the SEM and the weight of the connections of the neurons the coefficients of the SEM. Thus, backpropagation method using stochastic gradient descent (SGD) is proposed and studied as a new method to obtain the coefficient of an SEM.

A coated hypotrochoidal compressible liquid inclusion neutral to a hydrostatic stress field after relaxation by interface slip and diffusion

We study the steady-state response of a three-phase composite composed of an internal hypotrochoidal compressible liquid inclusion, an intermediate isotropic elastic coating and an outer isotropic elastic matrix with simultaneous interface slip and diffusion occurring on the solid–solid interface when the matrix is subjected to a uniform hydrostatic stress field. We design a neutral coated hypotrochoidal liquid inclusion that does not disturb the prescribed uniform hydrostatic stress field in the surrounding matrix. The neutrality is achieved when the plane-strain bulk modulus or the compressibility of the elastic matrix is determined by solving a system of simultaneous linear algebraic equations for given geometric and material parameters of the coated liquid inclusion.

Analysis of the Rebound Effect and Induced Effect of Non-residential Natural Gas Consumption: Empirical Evidence from China

Following the Paris Agreement, economic development demands energy services while reducing emissions. This study focuses on non-residential natural gas consumption, which plays a crucial role in transforming the energy sector; however, market-based mechanisms are still in the early stages and have not yet been explored. Based on the analysis of data collected from 2000 to 2020 in China, this study constructs a simultaneous equation model to analyze the rebound and induced effects of non-residential natural gas consumption. This paper finds that industrial economic growth has a significant promoting effect on non-residential gas consumption. In addition, implementing and promoting natural gas utilization policies and increases in natural gas prices can significantly reduce gas consumption intensity. This article innovatively calculates the rebound and induced effects of non-residential gas consumption, providing a decision-making reference for accelerating the realization of the dual-carbon goal.

Associations between the Number of Children, Depressive Symptoms, and Cognition in Middle-Aged and Older Adults: Evidence from the China Health and Retirement Longitudinal Study.

Background: China's rapidly aging population presents challenges for cognitive health and mental well-being among the older adults. This study examines how the number of children affects cognitive function in middle-aged and older adults and whether depressive symptoms mediate this relationship. Methods: This study analyzed data from waves 1 to 5 (2011-2020) of the China Health and Retirement Longitudinal Study (CHARLS), involving 5932 participants aged 45 and older. Participants were grouped by the number of children: childless, only child and multiple children. We used Logarithmic Generalized Linear Models (LGLMs) to explore the relationships among the number of children, depressive symptoms, and cognitive function. Indirect effect coefficients and 95% bias-corrected and accelerated confidence intervals (BCaCI) were estimated using Simultaneous Equation Models (SEM) with three-stage least squares (3SLS) and the bootstrap method to assess the mediating effect of depressive symptoms. Results: In middle-aged and older adults, a negative association was observed between the number of children and overall cognitive functioning (all p < 0.01). This association remained significant even after adjusting for covariates in groups with three (β = -0.023, p < 0.05) and four or more children (β = -0.043, p < 0.001). Conversely, the positive association between the number of children and depression also persisted after adjusting for covariates, although it weakened as the number of children increased (all p < 0.01). Depressive symptoms consistently correlated negatively with overall cognitive function (p < 0.001) and partially mediated the relationship between the number of children and cognitive function (pMe = 20.36%, p < 0.05). The proportion of the mediating effect attributed to depression was more pronounced in middle-aged and older adults who had experienced the loss of children (pMe = 24.31%) or had two children (pMe = 25.39%), with stronger mediating effects observed in males (pMe = 48.84%) and urban residents (pMe = 64.58%). Conclusions: The findings indicate that depressive symptoms partially mediate the relationship between the number of children and cognitive function in middle-aged and older adults in China. These results highlight the significance of considering mental health factors when studying cognitive function in this demographic. Notably, in families without children and those with two children, depressive symptoms play a crucial role in explaining the decline in cognitive function.

Integrated sustainability perspective and spillover effects of social, environment and economic pillars: A case study using SEY model

This study examines the integrated sustainability perspective by mapping the spillover effects among sustainable development pillars including social, environment, and economy. To this end, it estimates the sustainability elasticities between a developing country, Iran, and six global regions including 1- North America, 2- Latin America and Caribbean, 3- European Union, 4- Sub-Saharan Africa, 5- Middle East and North Africa (MENA) and 6- East Asia and Pacific. This estimation uses the SEY model, an econometric package involving simultaneous equations systems, Vector Autoregressive models (VAR), and Granger causality within 1971–2019. This research differs from the previous studies by exploring the sustainability spillovers not only spatially but also across various pillars of sustainable development. The results show that the pillars of sustainable development have significant and positive elasticities. This finding accepts the integrated sustainability perspective since the pillars of sustainable development indicate considerable and synergistic effects from both spatial and contextual outlooks. In this way, the findings support globalization, openness, and flow-based governance, consistent with Sustainable Development Goals (SDGs) 16 (Peace, justice and strong institutions) and 17 (Partnerships for the goals). Therefore, policymakers should strengthen the globalization and openness by establishing and promoting international agreements, global organizations, and inclusive frameworks not only in trade, finance, and economy but also in cultural, social, and political affairs.

Bridging the digital divide: innovation, economic growth and income inequality

ABSTRACT This study investigates the link between innovation and income inequality in a panel dataset of 50 countries from 2014 to 2019, focusing on the moderating effects of digitalization and the mediating effect of economic growth. Simultaneous quantile regression and structural equation modeling are used for analysis. The results reveal a significant negative association between innovation and lower and middle-income inequality, while higher-income inequality is not significantly linked to innovation. Moreover, the study finds that digital infrastructure negatively moderates the relationship between innovation and income inequality, whereas the digital market has a positive moderating effect. Additionally, the indirect effect of innovation through economic growth is not found to significantly contribute to reducing income inequality. To address this issue, policymakers are urged to act in bridging the digital divide and tackling income inequality.

Effect of Fintech on Sustainable Development Goals: An Empirical Analysis

Abstract This paper empirically examines the impact of financial technology (FinTech) and financial inclusion on sustainable development goals (SDGs). The adoption of FinTech has a significant positive effect on key SDGs in developing nations. Specifically, FinTech contributes to reducing income inequality and poverty, while promoting gender equality, access to basic sanitation, clean energy, and education. Additionally, the increasing adoption of FinTech is linked to overall economic growth. To address potential biases from heteroscedasticity and endogeneity, we conduct robustness checks using simultaneous equation modeling and Poisson pseudo-maximum likelihood estimations. Our findings confirm that the benchmark results are robust. JEL Codes: O1, O19, O20, Q01. Keywords: Sustainable Development Goals, SDG, Fintech, Financial Inclusion, Pseudo – Poisson Maximum Likelihood (PPML), Simultaneous Equations Model (SEM).

Association of transit-oriented development with transit use: Effects of gentrification and spatial autocorrelation

The empirical evidence in the existing literature primarily supports the positive association of transit-oriented development (TOD) with transit use. However, indirect relationships between TOD and transit use may be observed due to TOD-induced gentrification and spatial autocorrelation. This research examined the relationships between TOD, gentrification, and transit use with the consideration of spatial autocorrelation. The study observations were from the gentrifiable neighborhoods in Taipei City, Taiwan, and were analyzed using simultaneous equation models and spatial regression methods. Empirical results reveal three major findings: 1) A positive and direct association of TOD-ness with the modal share of transit substantially occurs and confirms the findings in the existing literature. 2) A negative and indirect association of TOD with transit use mediated by gentrification may occur under the moderation of rising car ownership. 3) A positive spatial autocorrelation of transit use substantially occurs between adjacent neighborhoods. These findings prompt local administrations to implement TOD policies containing or being accompanied by instruments inhibiting car ownership throughout urban areas rather than just along major transit corridors.

Female board gender diversity and financing decisions of listed firms: nonlinear threshold evidence using simultaneous equation modeling

Female board gender diversity and financing decisions of listed firms: nonlinear threshold evidence using simultaneous equation modeling

Do high housing prices inhibit entrepreneurial activity?—Evidence from Yangtze River Delta cities, China

AbstractContrary to the existing literature that suggests the inhibitory or facilitating effect of housing prices on entrepreneurial dynamism, this paper explores the nonlinear effect of housing prices on entrepreneurship and countervailing effect of entrepreneurial dynamism on housing prices, in addition to investigating the spatial interaction between the two. This paper constructs a simultaneous equation model (SEM) to empirically test the interaction and spillover effects between housing prices and entrepreneurial dynamism. The results show that: (1) there is a two‐way interaction between housing prices and entrepreneurial dynamism; (2) the estimated coefficients of housing prices and the quadratic square term of housing prices (14.285 and −0.744, respectively) are consistent and significant as expected, indicating an inverted U‐shaped effect of housing prices on entrepreneurial dynamism; and (3) in geospatial terms, there are positive spatial spillovers and negative spatial interaction effects for both house prices and entrepreneurial dynamism in Yangtze River Delta cities.