Simultaneous Equation Model Research Articles

An econometric study of Oregon's log and lumber markets: Estimation of price elasticities using two approaches

Estimation of price elasticities for regional and state-level timber and lumber markets is essential for conducting market-level analyses of how new policies or different types of market shocks might impact, or have impacted, the market outcomes and the economic returns experienced by market participants, such as landowners and lumber mills. By using two standard estimation approaches, 2SLS and VECM, we estimate the price elasticities from a system of simultaneous equations representing the log and lumber markets in Oregon. In contrast to previous studies, we estimate the elasticity coefficients by treating the markets for the two outputs as a whole system, meaning that both product prices are endogenous. Our empirical results show that the point estimates for price elasticities from the two approaches are reasonably similar. However, there are also differences, especially in the case of the price elasticity of lumber demand. Additionally, most of the price elasticity estimates from the 2SLS are statistically not significant with our data, whereas the VECM estimates are all statistically significant. At a general level, our results show that the demand and supply of logs and lumber in Oregon are both price inelastic, which partly helps to explain the considerable degree of variation typically witnessed in prices in both log and lumber markets.

Testing Taylor’s Law in Urban Population Dynamics Worldwide with Simultaneous Equation Models

Knowledge of long-term population trends is still incomplete at the global scale. In this perspective, human and animal ecology has intensively studied the relationship between the Mean (M) size and the Variance (V) of specific attributes of subpopulations within a given regional system. One of the best-known relationships between these two attributes suitable to describe long-term population trends is governed by Taylor’s law (TL). The present article contributes to the recent literature on population trends worldwide by testing the long-term relationship (1950–2015) between the overall variance and mean in the total population of 1857 metropolitan agglomerations in 155 countries classified into 9 world macro-regions. To estimate the unknown parameter(s) of the V–M relation we made use of a simultaneous equation system using both linear (classical TL) and quadratic specifications, with the aim of ascertaining a wide range of simplified (or more complex) association rules between the two dimensions of demographic change. The empirical results show that TL is verified in all nine cases, although a quadratic relationship provides slightly better results than the classical, linear relationship. More specifically, similar estimates for both linear and quadratic relationships were characteristic of ‘new’ demographic continents with more recent and intense urbanization processes (the Americas, and African and Asian countries). The predominance of quadratic relationships characterized regions with long-established urbanization processes, such as Europe, Russia, and, partly, China and the Middle East. The relevance of the TL for a refined understanding of urbanization mechanisms worldwide, and the importance of a quadratic term for distinguishing metropolitan systems that have experienced different development paths, were finally discussed.

Research on the Relationship between Agricultural Insurance Participation and Chemical Input in Grain Production

As an important agricultural policy, agricultural insurance will affect farmers’ production input, such as fertilizers and pesticides. Its development needs to consider the environmental impact and adapt to the needs of sustainable development. In addition, farmers’ chemical input behavior during the agricultural production process may also affect their agricultural insurance participation behavior. Based on data from a survey of 1318 farmers in the Shandong, Liaoning, Jiangxi, and Sichuan provinces of China, this paper established a simultaneous equations model to explore the interaction between farmers’ agricultural insurance participation behavior and chemical input in the grain production process. The results show a mutual causality between the decision to obtain insurance and chemical input in grain production. Farmers who input fewer chemical fertilizers and more pesticides per mu are more inclined to purchase agricultural insurance. Agricultural insurance participation significantly increases the input of chemical fertilizers and reduces the input of pesticides in the grain-production process. On this basis, the following policy recommendations are proposed: firstly, we should pay attention to the increasing role of agricultural insurance in agricultural sustainable development and further improve the agricultural insurance policy system; secondly, we should innovate and develop “green”-oriented agricultural insurance policies to accelerate the high-quality development of agricultural insurance; third, we should increase publicity and guidance to encourage more farmers to engage in green production.

Certain Iterative Methods to Solve System of Equations by Python Programming

In the 1980s and 1990s, a field known as scientific computing or computational science began to emerge as a result of the increasing significance of using computers to carry out numerical operations in order to solve mathematical models of the world. This paper examines numerical analysis’s application from a computer science view point; see[3][4][5].In this paper, Iterative methods like Gauss Jacobi and Gauss Serial were used to solve the system of simultaneous equation by using Python Programming.

Spatial panel simultaneous equations models with error components

Spatial panel simultaneous equations models with error components

The Dynamic Nexus of Fossil Energy Consumption, Temperature and Carbon Emissions: Evidence from Simultaneous Equation Model.

With the continuous increase in global fossil energy consumption, carbon dioxide emissions and the greenhouse effect have gradually increased. This study uses a simultaneous equations model to explore the dynamic nexus of fossil energy consumption, temperature, and carbon emissions in OECD and non-OECD countries, with panel data from 2004 to 2019. The results show that the improvement of international competitiveness has reduced the frequency of extreme weather in OECD and non-OECD countries, significantly reducing fossil energy consumption in non-OECD countries and carbon emissions in OECD countries. Sustainable economic growth has significantly reduced fossil energy consumption in OECD countries but increased carbon emissions, especially in non-OECD countries. In addition, in the short term, the improvement of international competitiveness has significantly reduced fossil energy consumption and carbon emissions in OECD and non-OECD countries. In the long term, the improvement of international competitiveness has a greater impact on reducing fossil energy consumption and carbon emissions in non-OECD countries and has a significant impact on reducing the frequency of extreme weather in OECD countries. Moreover, the long-term impacts of sustainable economic growth on fossil energy consumption and carbon emissions are more significant.

Impact of COVID-19’s supply and demand shocks on the household economy of tilapia smallholder farmer

PurposeThis study aims to verify the impact of the supply shock (fall in harvested output) and demand shock (fall in household income) due to the pandemic on the consumption of necessities and household savings of tilapia's smallholder farmer.Design/methodology/approachThe researchers randomly chose 144 households as research samples using the proportional random sampling technique in Padang Jaya District, North Bengkulu Regency. Researchers collected data on household income, farm losses, household consumption for basic needs, labor demand, use of production inputs, the amount of output sold and saving both during and before the pandemic. The data were collected from the sample using a questionnaire prepared by the researchers. This study used a simultaneous equations system for arranging tilapia's smallholder farmer household economic model.FindingsThis study verified that the demand shock phenomenon makes households more severe than the supply shock phenomenon. The demand shock phenomenon made worse-off tilapia smallholder farmers because it caused their household savings to drop during the pandemic. The fall in savings will disrupt the stability of consumption of household necessities (health, food, education and clothing) in the future.Originality/valueThe main contribution of this study was providing empirical evidence about the impact of the demand and supply shock of COVID-19 on the most vulnerable entities in the Indonesian freshwater aquaculture industry, namely, smallholder farmer households of freshwater aquaculture fish.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2022-0554.

Linking urban park cool island effects to the landscape patterns inside and outside the park: A simultaneous equation modeling approach

Urban parks have significant cooling effects that alleviate the urban heat island (UHI). The park cool island intensity (PCII), the temperature difference between outside and inside a park, is a widely used indicator of a park’s cooling ability. Understanding the driving factors of the PCII is crucial for better urban park planning and management. Taking the subtropical city of Changsha, China, as a case study, factors such as the landscape patterns inside and outside a park and the geometric morphology of a park were investigated, based on 153 urban parks. A novel simultaneous equation modeling (SEM) approach was used to account for the mutual interactions between the temperatures of a park and its buffer. The results show that: (1) Park geometric morphology and landscape patterns inside and outside the park all significantly impact the PCII. Specifically, doubling the park size can increase the PCII by 0.8 K. Increasing by ten percent the tree cover and water cover in the park can enhance the PCII by 0.12 K and 0.41 K, respectively. Increasing the mean tree patch size by 1 ha can increase the PCII by 0.43 K. Decreasing by one unit the mean tree patch shape index can increase the PCII by 0.31 K. (2) An elasticity analysis, which measures the PCII percent change resulting from one percent change in a driving factor, indicates the relative importance ranking of these driving factors: percent cover of impervious surface outside the park (0.77), park size (0.72), percent cover of tree within the park (0.51), percent cover of water within the park (0.12), and mean patch size of tree cover within the park (0.086). To enhance the PCII, we recommend building parks in the hot areas of the city, increasing their size, increasing the percentages of tree cover and water cover in the park, and optimizing the spatial configuration of the tree cover in the park (i.e., aggregating trees in a smaller number of large patches and reducing the irregularity of tree patches).

Do Poverty and Economic Growth Matter for Income Inequality Reduction in Yogyakarta Province?

It has been observed that income inequality is an economic element that may impede a nation's economic development. In general, Indonesia's Gini ratio has remained low for nearly a decade, although one region, Yogyakarta Province, unexpectedly exceeds the national average. The provincial government of Yogyakarta must focus more on reducing income inequality. Therefore, this study employs the Poverty-Growth-Inequality Triangle model approach to investigate the complexity of income inequality in Yogyakarta Province. The data is collected from five cities in Yogyakarta Province from 2010 to 2021. For the quantitative study, a Simultaneous Equation Model analysis with three iterations of least squares is performed. The results indicate that there is no causal relationship between income inequality and economic growth or poverty. According to the model of income inequality, education and the district minimum wage have a significant impact on income inequality. Therefore, local governments are advocated to evaluate policies aimed at reducing income inequality through education system reform, equity in district minimum wage and economic growth, and efficiency in the utilization of income inequality-related funds.

Daily Covid-19 infected population densities in Italian provinces follow Taylor’s law

ABSTRACT Taylor’s law states that the spatial variance of the population density varies as the power function of the mean population density. This law is tested on daily Covid-19 infection density for five periods between February 25, 2020 and March 15, 2021. The Italian provinces are grouped by geography into three ensembles. A simultaneous-equation model accounts for correlations between the ensembles, between Italian provinces within each ensemble, and for temporal autocorrelations. The selected periods show ensembles with all Taylor’s law slopes below 2 (reflecting State interventions at the national level), or all above 2 (reflecting interventions at the local level), or some ensembles above while others were below. Slope of Taylor’s law and average density trend indicate whether the infection density is highly concentrated in a few provinces (when the slope is greater than 2 with increasing density, and when the slope is less than 2 with decreasing density) or spread evenly among all provinces in an ensemble (when the slope is greater than 2 with decreasing density, and when the slope is less than 2 with increasing density), which allows the government and epidemiologists to design disease control policies for targeted provinces and ensembles in Italy.

The Impact of Labor Force Participation on Elderly Health in China.

In the context of the deepening of population aging and the trial implementation of a progressive retirement delay policy in China, understanding the relationship between the labor force participation and health status of the elderly will not only enrich relevant research but also help the elderly better achieve their goals of active aging and aging. Using the 2018 China Health and Retirement Longitudinal Study, this paper first established multiple linear regression models to analyze the impact of labor force participation on the health status of elderly people in China and then established simultaneous equation models using households living on minimum living allowances and the community average of labor participation as instrumental variables to deal with the endogeneity caused by two-way causality. The findings confirmed significant positive correlations between labor force participation and physical and mental health, while caring for grandchildren and participating in social activities were found to be negatively moderated the relationship between labor force participation and the physical and mental health of older adults. The impact of labor force participation on the physical health status of older men and the mental health status of older women may be greater. In addition, labor force participation may have a greater impact on the physical health of the rural elderly, and its impact on mental health was not found to be statistically significant between urban and rural areas.

Cultural context, organizational performance and Sustainable Development Goals: A pending task

<abstract> <p>The collaboration of private companies in the fulfillment of the Sustainable Development Goals (SDGs) is key to address global challenges of climate change, social inequality and environmental degradation. This collaboration can also boost their own organizational performance. However, the research on the relationship between SDG commitment and organizational performance remains inconclusive. The diversity of findings could stem from cross-cultural differences in corporate environments. The aim of this study, therefore, was to analyze the interaction between SDG commitment and organizational performance and to examine how this interaction is influenced by cultural factors. Using simultaneous equation modeling on a sample of 3,420 companies from 30 countries for the period 2015 to 2020, our results show that engagement with SDGs has an impact on organizational performance levels which is further enhanced by the catalytic effect of certain cultural factors.</p> </abstract>

Board Structure in Emerging Markets: A Simultaneous Equation Modeling

Board Structure in Emerging Markets: A Simultaneous Equation Modeling

Simultaneous Determination of Mixed Heavy Metal Ions Cr (III) and Co (II) in Wastewater by Cloud Point Extraction Dual Wavelength Spectrophotometry

Using cloud point extraction technology and the principle of absorbance addition in multi-component system, the mixed metal ions Cr (III) and Co (II) in industrial wastewater were enriched and determined at pH 5.0 and 50℃, using ammonium pyrrolidine dithiocarbamate (APDC) as complexing agent and Triton X-114 as extractant. The results indicate that the contents of Cr (III) and Co (II) can be calculated using a simultaneous equation system. The detection limits for Cr (III) and Co (II) are 0.74 ng/ml and 2.12 ng/ml, respectively. The recovery rates are 95.3% -104.0% and 96.9% -103.5%, respectively. This method has the characteristics of high accuracy, good repeatability, and fast detection speed, and has good practical value.

The impact of central bank digital currency variation on firm's implied volatility

The paper investigates whether a firm's implied volatility is affected by the volatility of central bank digital currencies. Our sample covers 2853 listed companies in the United States from 2014 to 2018. First, we find the variation of central bank digital currency has a positive impact on a firm’s implied volatility. Second, the healthier firms’ conditions can reduce the relationship between central bank digital currency variation and a firm’s implied volatility. Third, the positive relation between central bank digital currency and firm’s implied volatility still exists in investment-grade, speculative-grade, and unrated firms. Finally, to eliminate the endogeneity problem, we adopt simultaneous equation models (SEM) and find our results are still robust after excluding endogenous concerns. Our research provides a reminder for corporate managers and new implications for policymakers.

Axisymmetric frictionless contact between an elastic layer thickness and a circular base under a rigid punch

The study presented in this work deals with analytical methods for an axisymmetric problem of an elastic layer partially reposing on a rigid circular base, and is indented along the upper surface with a rigid punch. The contact between the medium and the base is smooth. This boundary value problem is transformed into a system of dual integral equations. In contrast to the classical approach consisting in resolving the corresponding Fredholm equation of the second kind, the latter equations are obtained from an infinite algebraic system of simultaneous equations, where the particular case [Formula: see text] is verified. The results of this system are also obtained numerically. The normal displacement, normal stress, and the stress singularity factor are given analytically and shown graphically with discussion. By comparison with those predicted by the finite element method, the accuracy of the numerical method is approved.

ЕКОНОМІЧНИЙ РОЗВИТОК ТА ЛЮДСЬКИЙ КАПІТАЛ РЕГІОНУ: ВЗАЄМНИЙ ВПЛИВ НА ПРИКЛАДІ ЛЬВІВСЬКОЇ ОБЛАСТІ

Human capital is identified as one of the essential factors of economic growth. However, there is an inverse effect of the economic development of territories on the formation and improvement of human capital, which needs to be researched. It is advisable to apply the system of simultaneous equations to identify the mutual influence between human capital and economic development. To study the dependence of economic development (EPD) and human capital (number of employed population) of Lviv region, such indicators as capital investments, consumer price index, scientific expenses of enterprises for carrying out scientific research, average salary per employee, number of specialists graduated from higher education institutions were used educational institutions of the Lviv region. The simultaneous model of the influence of human capital on regional development is described by two equations: GRP and the number of the employed population. The first equation of the model describes the dependence of the volume of the gross regional product on the employed population of the region, capital investments, the consumer price index, and the scientific expenses of enterprises for conducting scientific research. The model's second equation describes the employed population's dependence on the volume of the gross regional product, the average salary, and the number of graduates of higher education institutions in the Lviv region. As shown by the results of calculations based on statistical data for 2004–2021, 99.4% of the gross regional product is explained by the influence of such indicators as capital investments, the consumer price index, scientific expenses of enterprises for carrying out scientific research and human capital – employed population of Lviv region. At the same time, 86.4% of the employed population is explained by the influence of the following indicators: the average salary per employee and the number of graduates from higher education in the Lviv region. Therefore, analyzing the obtained results, we can conclude that the model adequately reflects the influence of human capital on the regional development of the Lviv region.

Межрегиональные экономические взаимодействия в свете теории центральных мест

This paper considers basic models of functional hierarchy of central places, which are based on different systems of axioms and, therefore, reproduce different spatial structures of economic interactions. This study substantiates the possibility of using these models in researches of wider class of hierarchical systems of central places, where central places are not the settlements, characterized by relations of mutual location and subordination, but the regions, the elements of national economic space, characterized by relations of coalition productivity. For the spatial structures of economic interactions described by Christaller, Tinbergen, and Losch functional hierarchy models, matrices of income flows and spatial multipliers are constructed. The incomes in the models of successively inclusive hierarchy of Christaller and Tinbergen are determined on the basis of the system of recursive equations, in the model of fuzzy hierarchy within economic landscape of Losch – on the basis of the system of simultaneous equations. It’s shown that for identification of types of spatial structures themselves – successively inclusive or fuzzy hierarchy, the parameter of nesting market areas as such has no special importance, and the polymorphism of the central places system can be determined by the structural parameters of spatial multipliers. The resulting matrices of income flows differ mainly in the number of allocated levels of the functional hierarchy and the configuration of trade flows between different levels. Compared to other models, the role of intraregional effects in the formation of income at different levels of the hierarchy is lower in Losch’s model, and the role of system effects is higher. The directions of search for meaningful generalizations during the transition from the theory to the concept of central places, oriented to the study of a wider class of hierarchical systems, were determined. They are: refusal from planar projections; determination of generalized characteristics of the system of central places (mass of central places and ‘distance’ between them); development of principles of coordination of conclusions of theoretical and conceptual designs; formulation and solution of the problem of multilevel analysis

Empirical Research on the Relationship between Education Poverty Alleviation and Rural Revitalization—Spatial Panel Simultaneous Equation Model Based on Provincial Panel Data

Empirical Research on the Relationship between Education Poverty Alleviation and Rural Revitalization—Spatial Panel Simultaneous Equation Model Based on Provincial Panel Data

The effect of broadband on economic growth in Latin America: an approach based on a simultaneous equations model

The effect of broadband on economic growth in Latin America: an approach based on a simultaneous equations model