Simultaneous Equation Regression Model Research Articles

Understanding the Dynamics of Unemployment and Poverty in the Tomini Bay Area

This study aims to analyze the effect of education level, gini ratio and labor force participation rate on unemployment, as well as the effect of unemployment on poverty in the Tomini Bay region. The data used in the study is secondary data in the form of 10 regencies/cities in the Tomini Bay area, for the 2018-2022 period, sourced from the Indonesian Central Bureau of Statistics. The novelty of this study is trying to trace the relationship between educational and economic aspects to the phenomenon of poverty in the Tomini Bay Region, as a regional economic power. The future impact of this study is the mapping of the actual condition of poverty and the availability of more evidence-based policy recommendations in reducing unemployment and poverty in the Tomini Bay Area. This study used descriptive quantitative methods. With an approach (Simultaneous equation regression model) using the Indirect Least Square (ILS) regression technique with Fixed Effect Model (FEM). The results of this study show that the level of education and the labor force participation rate have a negative and significant effect on unemployment. In contrast to the Gini ratio which actually has a positive and significant effect on unemployment. On the other hand, unemployment shows a positive and significant influence on poverty. The implication of the research is the need for a truly massive policy to strengthen the education dimension, to accelerate the increase in human capital and the importance of a sustainable program to increase employment opportunities from the government so as to reduce unemployment and poverty.

Analiis Pengaruh Belanja Modal Terhadap Pertumbuhan Ekonomi dan Ketimpangan Pendapatan di Sumatera Barat

This study aims to determine and analyze the effect of capital expenditure on economic growth and income inequality in West Sumatra. This research is descriptive and inductive. The data used in this study is secondary data with data collection using panel data obtained from BPS West Sumatra Province 2014-2018 period with 19 regencies / cities in West Sumatra. This study analyzed using a simultaneous equation model (simultaneous equation regression model). The results of this study indicate that (1) Capital Expenditures have a significant effect on Economic Growth in West Sumatra (2) Capital Expenditures have no significant effect on Income Inequality in West Sumatra (3) Simultaneously Capital Expenditures and Economic Growth have a significant effect on Income Inequality in West Sumatra.

ANALISIS PENGARUH BELANJA MODAL TERHADAP PERTUMBUHAN EKONOMI DAN KETIMPANGAN PENDAPATAN DI SUMATERA BARAT

Abstrak : This study aims to determine and analyze the effect of capital expenditureon economic growth and income inequality in West Sumatra. This research isdescriptive and inductive. The data used in this study is secondary data with datacollection using panel data obtained from BPS West Sumatra Province 2014-2018period with 19 regencies / cities in West Sumatra. This study analyzed using asimultaneous equation model (simultaneous equation regression model). The resultsof this study indicate that (1) Capital Expenditures have a significant effect onEconomic Growth in West Sumatra (2) Capital Expenditures have no significanteffect on Income Inequality in West Sumatra (3) Simultaneously Capital Expendituresand Economic Growth have a significant effect on Income Inequality in WestSumatra.Keyword : Capital Expenditure, Economic Growth, Income Inequality

ANALISIS DETERMINAN KESEMPATAN KERJA DAN KEMISKINAN PADA KABUPATEN/KOTA DI SUMATERA BARAT

Abstract : This research focuses on analyzing and knowing the effect of jobopportunities and poverty on Regencies/Cities in West Sumatra. This research isdescriptive and inductive. The data used in this study is secondary data with datacollection using panel data obtained from BPS West Sumatra Province 2013-2019period with 19 districts / cities in West Sumatra. This study analyzed using asimultaneous equation model (simultaneous equation regression model). Theresults of this study conclude that (1) Government investment has an insignificantand positive impact on employment opportunities, private investment has asignificant and positive impact on opportunities, economic growth has nosignificant effect and has a negative impact on employment opportunities. (2)Private investment has an insignificant and positive impact on poverty, economicgrowth has a significant and positive impact on poverty, education has asignificant and negative impact, while job opportunities have an insignificant andnegative impact on poverty in Regencies/Cities in West Sumatra 2013-2019.Keywords : Government Investment, Private Investment, Economic Growth,Education, Job Opportunities, Poverty.

Pengaruh Teknologi Informasi dan Komunikasi Terhadap Pasar Tenaga Kerja dan Pertumbuhan Ekonomi di Indonesia

This study discusses the study and analysis of Information and Communication Technology (ICT) on the Labor and Economic Markets in Indonesia. The data used in this study are panel secondary data from 2012 to 2018 with a sample of 34 provinces in Indonesia. Data obtained from related institutions and then analyzed using the simultaneous equation model (simultaneous equation regression model) with the Indirect Least Square (ILS) method to calculate indirect parameters and calculated using the first with the application of the OLS model through the selection of the CEM, FEM and REM model then continued with classic trials. Partial research results show, Information and communication technology has a significant influence on the Labor Market in Indonesia. Furthermore, simultaneous, Information and Communication Technology and Labor Market have a significant influence on the economic conversation in Indonesia Indonesia. However, partially, Information and Communication Technology has a negative influence on the acceleration of the Economy in Indonesia. Based on the results of this research, the steps in the progress of Information and Communication Technology have become one of the studies for governments that need help, in order to increase insight, use, use, and match for policy makers in developing countries specifically Indonesia so that it can be an appropriate intervention to influence per capita economic growth.

Analisis Determinan Kesempatan Kerja dan Kemiskinan pada Kabupaten/Kota di Sumatera Barat

This research focuses on analyzing and knowing the effect of job opportunities and poverty on Regencies/Cities in West Sumatra. This research is descriptive and inductive. The data used in this study is secondary data with data collection using panel data obtained from BPS West Sumatra Province 2013-2019 period with 19 districts / cities in West Sumatra. This study analyzed using a simultaneous equation model (simultaneous equation regression model). The results of this study conclude that (1) Government investment has an insignificant and positive impact on employment opportunities, private investment has a significant and positive impact on opportunities, economic growth has no significant effect and has a negative impact on employment opportunities. (2) Private investment has an insignificant and positive impact on poverty, economic growth has a significant and positive impact on poverty, education has a significant and negative impact, while job opportunities have an insignificant and negative impact on poverty in Regencies/Cities in West Sumatra 2013-2019.

Understanding Vietnamese Urban Consumers' Nutrition Label Use, Health Concerns, and Consumption of Food and Beverages with Added Sugars.

Vietnam is experiencing a diet and nutrition transition. Increasing consumption of food and beverages with added sugars is a significant public health concern. Policies and interventions, such as mandatory nutrition labelling, are being considered to improve consumers’ awareness and understanding of diet and health implications of added sugars in food and beverages. The effectiveness of various policy approaches relies on an improved understanding of the interrelationships between urban Vietnamese consumers’ health concerns, nutrition label use, and intake of sugars. We empirically disentangle these relationships for urban Vietnamese households using novel intra-household data covering 4047 adults and 737 adolescents from 1590 households in Hanoi and Ho Chi Minh City. The data are from comprehensive household surveys and 24-hour food diaries. Simultaneous equation regression models are estimated using three-stage least squares (3SLS) to account for possible endogeneity. Nutrition label use is significantly associated with a lower share of calories from foods and beverages with added sugars. These findings suggest that nutrition labelling programs may be an effective policy mechanism to reduce the negative health implications of increasing availability and consumption of food and beverages with added sugars in urban Vietnam.

PENGARUH TEKNOLOGI INFORMASI DAN KOMUNIKASI TERHADAP PASAR TENAGA KERJA DAN PERTUMBUHAN EKONOMI DI INDONESIA

Abstract : This study discusses the study and analysis of Information and Communication Technology (ICT) on the Labor and Economic Markets in Indonesia. The data used in this study are panel secondary data from 2012 to 2018 with a sample of 34 provinces in Indonesia. Data obtained from related institutions and then analyzed using the simultaneous equation model (simultaneous equation regression model) with the Indirect Least Square (ILS) method to calculate indirect parameters and calculated using the first with the application of the OLS model through the selection of the CEM, FEM and REM model then continued with classic trials. Partial research results show, Information and communication technology has a significant influence on the Labor Market in Indonesia. Furthermore, simultaneous, Information and Communication Technology and Labor Market have a significant influence on the economic conversation in Indonesia Indonesia. However, partially, Information and Communication Technology has a negative influence on the acceleration of the Economy in Indonesia. Based on the results of this research, the steps in the progress of Information and Communication Technology have become one of the studies for governments that need help, in order to increase insight, use, use, and match for policy makers in developing countries specifically Indonesia so that it can be an appropriate intervention to influence per capita economic growth.Keywords: Information and Communication Technology, Labor, Economic Communication, Solow Model and Simultaneous Equation Model

Analysis Of Village Dau, Dak, And Funds On Inequality Distribution Income And Growth In Indonesia 2015-2018

This study aims to analyze (1) the effect of DAU on economic growth, (2) the effect of DAK on economic growth, (3) the effect of income distribution inequality on economic growth, (4) the influence of the Village Fund on income distribution inequality, (5) the effect of growth the economy against inequality of income distribution. The data used were sourced from the Ministry of Finance through the Directorate General of Fiscal Balance and the Indonesian Central Statistics Agency during the 2015-2018 period, the unit of analysis was 33 provinces in Indonesia. This study uses a simultaneous equation regression model with the two stage least square (2SLS) regression technique with the Fixed Effect Model (FEM). The results showed that, (1) general allocation funds have a positive and significant effect on economic growth, which means that any increase in general allocation funds will be followed by an increase in economic growth. (2) special allocation funds have a negative and significant effect on economic growth. This means that any increase in special allocation funds will make economic growth decline. (3) income distribution inequality has a negative and significant effect on economic growth, which means that any increase in income distribution inequality can as much as reduce economic growth. (4) the variable of village funds has a negative and not significant effect on the inequality of income distribution, which means that any increase in village funds will make the income distribution inequality decrease. (5) economic growth variable has a negative and significant effect on inequality of income distribution, which means that any increase in economic growth can reduce inequality of income distribution decreases.
 
 Keywords: DAU, DAK, Village Funds, Economic Growth, Inequality of Income Distribution.

Financial report readability and audit fees: a simultaneous equation approach

PurposeThis paper aims to investigate whether audit fees and financial report readability are bi-directionally related.Design/methodology/approachThe authors test their hypotheses with empirical data. Specifically, they adopt a two-stage simultaneous equation regression model to assess the bi-directional relationship between audit fees and financial report readability.FindingsWhile poor readability increases the fees charged by the auditor, higher audit fees improve the readability of the financial reports.Research limitations/implicationsThis study is based on US data. Future research may extend this study to other countries.Practical implicationsPoor financial report readability encumbers stakeholders of the firms. Understanding the interaction between financial report readability and audit fees will help both auditors and firm managers.Social implicationsAudit committees aggressively negotiating for lower audit fees should be aware of the link of low audit fees, potentially indicative of poor quality, to less readable reports. Investors and regulators too should be concerned about this relationship, especially in instances when auditors low-ball audit fees or when firms aggressively negotiate for lower audit fees.Originality/valueTo the best of authors’ knowledge, this study is the first to document the bi-directional relationship between financial report readability and audit fees and assess the positive impact of audit fees on financial report readability.

Association of White Matter Rarefaction, Arteriolosclerosis, and Tau With Dementia in Chronic Traumatic Encephalopathy

Chronic traumatic encephalopathy (CTE) is a neurodegenerative disease associated with repetitive head impacts, including those from US football, that presents with cognitive and neuropsychiatric disturbances that can progress to dementia. Pathways to dementia in CTE are unclear and likely involve tau and nontau pathologic conditions. To investigate the association of white matter rarefaction and cerebrovascular disease with dementia in deceased men older than 40 years who played football and had CTE. This cross-sectional study involves analyses of data from the ongoing Understanding Neurologic Injury and Traumatic Encephalopathy (UNITE) Study, which is conducted via and included brain donors from the Veterans Affairs-Boston University-Concussion Legacy Foundation brain bank between 2008 and 2017. An original sample of 224 men who had played football and were neuropathologically diagnosed with CTE was reduced after exclusion of those younger than 40 years and those missing data. The number of years of football play as a proxy for repetitive head impacts. Neuropathological assessment of white matter rarefaction and arteriolosclerosis severity (on a scale of 0-3, where 3 is severe); number of infarcts, microinfarcts, and microbleeds; and phosphorylated tau accumulation determined by CTE stage and semiquantitative rating of dorsolateral frontal cortex (DLFC) neurofibrillary tangles (NFTs) (none or mild vs moderate or severe). Informant-based retrospective clinical interviews determined dementia diagnoses via diagnostic consensus conferences. A total of 180 men were included. The mean (SD) age of the sample at death was 67.9 (12.7) years. Of 180, 120 [66.7%]) were found to have had dementia prior to death. Moderate to severe white matter rarefaction (84 of 180 [46.6%]) and arteriolosclerosis (85 of 180 [47.2%]) were common; infarcts, microinfarcts, and microbleeds were not. A simultaneous equations regression model controlling for age and race showed that more years of play was associated with more severe white matter rarefaction (β, 0.16 [95% CI, 0.02-0.29]; P = .03) and greater phosphorylated tau accumulation (DLFC NFTs: β, 0.15 [95% CI, 0.004-0.30]; P = .04; CTE stage: β, 0.27 [95% CI, 0.14-0.41]; P < .001). White matter rarefaction (β, 0.16 [95% CI, 0.02-0.29]; P = .03) and DLFC NFTs (β, 0.16 [95% CI, 0.03-0.28]; P = .01) were associated with dementia. Arteriolosclerosis and years of play were not associated, but arteriolosclerosis was independently associated with dementia (β, 0.21 [95% CI, 0.07-0.35]; P = .003). Among older men who had played football and had CTE, more years of football play were associated with more severe white matter rarefaction and greater DLFC NFT burden. White matter rarefaction, arteriolosclerosis, and DLFC NFTs were independently associated with dementia. Dementia in CTE is likely a result of neuropathologic changes, including white matter rarefaction and phosphorylated tau, associated with repetitive head impact and pathologic changes not associated with head trauma, such as arteriolosclerosis.

¿Concentración sin poder de mercado? Un caso de estudio aplicado al sector fabricación de colchones en el Ecuador

La presente investigación tiene como objetivo establecer la estructura de mercado de la industria de fabricación de colchones en el Ecuador y las relaciones que presentan las variables concentración, precios del mercado local, tipo de cambio y rentabilidad. Se utiliza un modelo de regresión de ecuaciones simultáneas de mínimos cuadrados en tres etapas (MC3E) con información de las empresas con mayor cuota de mercado del sector. La concentración de mercado se calcula utilizando el índice Herfindahl – Hirschman. Los principales resultados exhiben que existe una estructura de mercado imperfecta y que la cuota de mercado incide en la rentabilidad del oligopolio. El oligopolio a su vez no ejerce poder de mercado, por la competitividad en precios de los colchones importados.

ANALISIS VARIABEL MONETER AMERIKA SERIKAT TERHADAP PERTUMBUHAN EKONOMI NEGARA EMERGING MARKET

This study aims to find effect of monetary variable of US on economic growth in emerging market countries, such as Indonesian, Malaysian, Thailand and Philipines. These four countries are commonly called tiger cub countries that have the potential to become developed countriesin the future. The data used are secondary data in the form of time series from 2010:Q1 until 2018:Q4. The variables used are gap of The Fed Funds rate and gap of Inflation of US as exogen variable. Then, exchange rate and economic growth as endogen variable. The research methods used are simultaneous equation regression model with indirect least square methode. The results of the study show that (1)Gap of The Fed Interest Rate has a significant effect on the exchange rate in all sample of Emerging Market Countries while US inflation only has a significant effect on the exchange rate in Indonesia.(2) in simultaneously gap of The Fed Interest rate, gap of US inflation and the exchange rate which contaminated by changes in the US monetary variable have a significant influence on economic growth in Emerging Market Countries, except in Malaysian.(3) In partially, gap of The Fed Interest rate and the exchange rate have a significant influence on economic growth in Indonesian, Thailand and Philipines.While gap of US inflation has a significant influence on economic growth only in Indonesian and Philipines.

Oil price volatility and its impact on economic growth and food security in Bangladesh

This study empirically examines oil price volatility and the impact of oil price changes on the growth of the economy and food security in Bangladesh. The study uses yearly data of macroeconomic variables from 1991 to 2015 and global food security index (GFSI) for the period 2012 to 2015. Furthermore, data of GFSI for previous four years have been simulated using exponential model. The GARCH (2, 1) model with minimum AIC postulates that volatility was high in the previous period and it has been continued to be lower in the current period (i.e. 2015). The co-integration test and error correction model exhibit that both in short-run and long-run case the increasing oil price negatively affected the growth of the economy. The simultaneous equations regression model using three-stage least squares estimator discloses that an increase in oil price declines the economic growth and food security simultaneously and significantly. Moreover, this study suggests that oil price volatility is not a good sign for the economy of Bangladesh, since, the country is an importer of crude oil, government policy should be quick responsive in relation to international oil market to create consistent oil market and sustainable economic development in Bangladesh.&#x0D; J. Bangladesh Agril. Univ. 16(3): 482–491, December 2018

Microglial neuroinflammation contributes to tau accumulation in chronic traumatic encephalopathy.

The chronic effects of repetitive head impacts (RHI) on the development of neuroinflammation and its relationship to chronic traumatic encephalopathy (CTE) are unknown. Here we set out to determine the relationship between RHI exposure, neuroinflammation, and the development of hyperphosphorylated tau (ptau) pathology and dementia risk in CTE. We studied a cohort of 66 deceased American football athletes from the Boston University-Veteran’s Affairs-Concussion Legacy Foundation Brain Bank as well as 16 non-athlete controls. Subjects with a neurodegenerative disease other than CTE were excluded. Counts of total and activated microglia, astrocytes, and ptau pathology were performed in the dorsolateral frontal cortex (DLF). Binary logistic and simultaneous equation regression models were used to test associations between RHI exposure, microglia, ptau pathology, and dementia. Duration of RHI exposure and the development and severity of CTE were associated with reactive microglial morphology and increased numbers of CD68 immunoreactive microglia in the DLF. A simultaneous equation regression model demonstrated that RHI exposure had a significant direct effect on CD68 cell density (p < 0.0001) and ptau pathology (p < 0.0001) independent of age at death. The effect of RHI on ptau pathology was partially mediated through increased CD68 positive cell density. A binary logistic regression demonstrated that a diagnosis of dementia was significantly predicted by CD68 cell density (OR = 1.010, p = 0.011) independent of age (OR = 1.055, p = 0.007), but this effect disappeared when ptau pathology was included in the model. In conclusion, RHI is associated with chronic activation of microglia, which may partially mediate the effect of RHI on the development of ptau pathology and dementia in CTE. Inflammatory molecules may be important diagnostic or predictive biomarkers as well as promising therapeutic targets in CTE.

Reconsidering trade and conflict simultaneity: The risk of emphasizing technique over substance

Goenner ( Conflict Management and Peace Science, 28(5): 1–20, 2011) criticizes the simultaneous equations regression model (SEM) of bilateral trade flows (BT) and militarized interstate disputes (MID) developed by Keshk, Pollins and Reuveny ( Journal of Politics 66(4): 1155–1179, 2004) and extended by Keshk, Reuveny and Pollins ( Conflict Management and Peace Science, 27(1): 1–20, 2010). Like Hegre, Oneal and Russett ( Journal of Peace Research 47(6): 763–774, 2010), he does not agree with Keshk, Reuveny and Pollins that a larger BT has no effect on MID. Unlike Hegre et al. (2010), who focus on the role of distance between capital cities on MID in Keshk et al.’s (2004) SEM, Goenner finds faults in their econometrics. Once these faults are fixed, he says, a larger BT reduces the probability of MID. His analysis is unconvincing. We believe our essay is of interest beyond the trade and conflict research community, as it illustrates the risk of emphasizing technique over substance.

Does Immigration Stimulate International Trade? Measuring the Channels of Influence

This article examines the relationship between immigration and international trade. It applies panel data in a simultaneous equation regression model to test six channels through which immigration is hypothesized to influence international trade. The results indicate that immigration stimulates bi-lateral trade between 16 OECD countries and a large set of immigrant source countries for the years 1991–2000 primarily by 1. increasing foreign direct investment flows back to the source countries, 2. creating trade networks between immigrants in destination and native countries, and 3. raising income in immigrant destination countries.

Overweight Korean Adolescents and Academic Achievement

The relationship between academic achievement and being overweight among South Korean high school students was examined. Data used in the regression were from the Korean Education and Employment Panel Survey. The theoretical framework that poor school performance increases the risk of adolescents’ being overweight, which, in turn, causes poor school performance, was supported. With no other direct or indirect association between weight and achievement, an overweight high school student’s poor performance in school was assumed to be a function of the psychosocial well-being variables and self-concern about weight. A simultaneous-equation regression model that endogenized the likelihood an individual is classified as overweight (a binary variable) and the performance of that individual on the College Scholastic Ability Test (CSAT) incorporates the unobserved psychosocial well-being correlated with both school grades and being overweight.

Nature and/or nurture? Analyzing the determinants of transit ridership across US urbanized areas

Public subsidy of transit services has increased dramatically in recent years, with little effect on overall ridership. Quite obviously, a clear understanding of the factors influencing transit ridership is central to decisions on investments in and the pricing and deployment of transit services. Yet the literature about the causes of transit use is quite spotty; most previous aggregate analyses of transit ridership have examined just one or a few systems, have not included many of the external, control variables thought to influence transit use, and have not addressed the simultaneous relationship between transit service supply and consumption. This study addresses each of these shortcomings by (1) conducting a cross-sectional analysis of transit use in 265 US urbanized areas, (2) testing dozens of variables measuring regional geography, metropolitan economy, population characteristics, auto/highway system characteristics, and transit system characteristics, and (3) constructing two-stage simultaneous equation regression models to account for simultaneity between transit service supply and consumption. We find that most of the variation in transit ridership among urbanized areas – in both absolute and relative terms – can be explained by factors outside of the control of public transit systems: (1) regional geography (specifically, area of urbanization, population, population density, and regional location in the US), (2) metropolitan economy (specifically, personal/household income), (3) population characteristics (specifically, the percent college students, recent immigrants, and Democratic voters in the population), and (4) auto/highway system characteristics (specifically, the percent carless households and non-transit/non-SOV trips, including commuting via carpools, walking, biking, etc.). While these external factors clearly go a long way toward determining the overall level of transit use in an urbanized area, we find that transit policies do make a significant difference. The observed range in both fares and service frequency in our sample could account for at least a doubling (or halving) of transit use in a given urbanized area. Controlling for the fact that public transit use is strongly correlated with urbanized area size, about 26% of the observed variance in per capita transit patronage across US urbanized areas is explained in the models presented here by service frequency and fare levels. The observed influence of these two factors is consistent with both the literature and intuition: frequent service draws passengers, and high fares drive them away.

Mesmerizing marketing: a compact cultural history

PurposeThe purpose of this paper is to examine the widely‐held belief that marketing holds customers in thrall and persuades them to buy things they otherwise would not.Design/methodology/approachRather than adopt a scientific approach to the mesmeric marketing phenomenon, it embraces an artistic perspective, focusing on three crucial cultural “moments” in the emergence of the great manipulator mindset.FindingsWhereas innumerable scientific experiments show that subliminal advertising does not work, except in certain circumstances, the cultural approach demonstrates that subliminals are, in fact, enormously successful. Regardless of scientific evidence to the contrary, most consumers believe that subliminal advertising not only works but is an established marketing practice.Practical implicationsThe paper suggests that marketers should place less reliance on the scientific paradigm. Marketing science has its place – a very important place – but not everything can be captured in a simultaneous equation or linear regression model. Cultural components analysis is just as significant as principal components analysis.Originality/valueReceived wisdom concerning subliminal advertising is challenged and creatively reinterpreted from a supra‐science standpoint.