1,721,040 research outputs found
Panel Unit Root Tests under Cross-sectional Dependence: An Overview
No full textThe increasing availability of new datasets where the time-series dimension and the cross-section dimension are of the same order of magnitude asks for new techniques for the analysis of this peculiar kind of data. In the panel unit root test framework, two generations of tests have been developed: a first generation whose main limit is the assumption of cross-sectional independence across units; a second generation of tests that rejects the cross-sectional independence hypothesis. Although within this second generation of tests different approaches can be distinguished on the basis of the way in which the cross-sectional dependence is modelled the one that has encountered the most attention among researchers is the factor structure approach. This paper provides an updated overview of the main tests belonging to the second generation, and underlines the main issues which remain to be solved
The Italian labour market. A "global" regional econometric model
No full textThe starting point of this work is the remark that recent decades have been characterized by a rising complexity in the economic and political context both at the national and international level. This is due both to the European economic and monetary integration process and to the regional decentralisation process. With the aim of providing a useful tool of analysis for the decision-maker, a global regional model for the Italian labour market has been constructed on the basis of annual data from ISTAT-SVIMEZ over the 1970-2003 period. This model could be viewed as an extension to a multi-regional framework of the previous one-region model developed by Baussola (2007). The model shows good performance not only in representing regional labour market specificities, but also in reproducing national variable values. It is also robust and effective in a time-series context
Causality and interdependence analysis in linear econometric models with an application to fertility
No full textThis paper is an applied analysis of the causal structure of linear multi-equational econometric models. Its
aim is to identify the kind of relationships linking the endogenous variables of the model, distinguishing
between causal links and feedback loops. The investigation is first carried out within a deterministic
framework and then moves on to show how the results may change inside a more realistic stochastic
context. The causal analysis is then specifically applied to a linear simultaneous equation model explaining
fertility rates. The analysis is carried out by means of a specific RATS programming code designed to show
the specific nature of the relationships within the model
International competitiveness in post-Keynesian growth theory: controversies and empirical evidence
No full textA fundamental starting point for post-Keynesian theory concerning growth in open economies is succinctly expressed in the following statement by Kaldor:
‘[T]he main autonomous factor governing both the level and the rate of growth of effective demand of an industrial country...is the external demand for its exports:
and the main factor governing the latter is international competitiveness, which in turn depends on the level of its industrial cost relatively to other industrial exporters’
(Kaldor, 1971, p. 7; italics added). Moreover, thanks to increasing returns in manufacturing, export expansion and international competitiveness would interact
so as to create vicious or virtuous circles of cumulative causation. A few years later Kaldor, having found a positive correlation between the time changes of the main industrial countries’ relative manufacturing export shares and that of their relative unit costs—a correlation that became known as the ‘Kaldor paradox’— dismissed his original cumulative causation theory and adopted a version close to Harrod’s ‘foreign trade multiplier’. The purpose of this paper is to reaffirm the Kaldorian cumulative causation theory in its original version, by providing a firmer analytical basis and showing that, contrary to the ‘Kaldor paradox’, time changes in export performance must be ‘explained’ by levels rather than by changes in unit costs
Non-home biased individuals’ investment choices: the role of the birthplace of investors
Full text linkThis paper investigates the determinants of non-home biased investment behaviour among individual investors, focusing on birthplace as an explanatory factor. Using microdata from the 2022 wave of the Bank of Italy’s Household Income and Wealth Survey, which distinguishes Italian citizens born in Italy from those born abroad but living in Italy, a two-stage Heckman selection model is implemented to explore both the likelihood of investing in foreign assets and
the extent of such investments. The results show that individuals born outside Italy are significantly more likely to invest in foreign securities, underscoring the role of birthplace in reducing home bias. Furthermore, non-home bias is positively associated with higher education levels, greater financial wealth, and higher risk tolerance, while age has a slight negative effect on the proportion of investment made abroad. Interestingly, the analysis reveals a negative relationship between income class and share of foreign investments, suggesting that wealthier individuals may allocate a smaller portion of their portfolios to foreign assets, despite higher participation rates.
The analysis contributes to the literature by identifying birthplace as a significant factor shaping investment decisions and extends the understanding of behavioural finance beyond traditional home bias studies. These findings have practical implications for financial advisors and regulators, helping them tailor portfolio recommendations and evaluate investor suitability based on socio-demographic and behavioural characteristics
Structural differences across macroregions: an empirical investigation
No full textUsing a macro–micro econometric framework that allows studying the labour market dynamics, this paper offers an in-depth investigation of the structures of both national and macro regional labour markets in Italy. The simulation results reveal structural differences between regions in the short as well as the long run.
Regional gaps represent one of the main components of the natural unemployment rate in Italy. The results may help regional and national policy makers in the European Union to formulate strategies tailored to the specific needs of regional labour markets
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