Causal inference using regression-based statistical control: Confusion in Econometrics

Regression is a widely used econometric tool in research. In observational studies, based on a number of assumptions, regression-based statistical control methods attempt to analyze the causation between treatment and outcome by adding control variables. However, this approach may not produce reliable estimates of causal effects. In addition to the shortcomings of the method, this lack of confidence is mainly related to ambiguous formulations in econometrics, such as the definition of selection bias, selection of core control variables, and method of testing for robustness. Within the framework of the causal models, we clarify the assumption of causal inference using regression-based statistical controls, as described in econometrics, and discuss how to select core control variables to satisfy this assumption and conduct robustness tests for regression estimates.

Examine the Reliability of Econometrics Software: An Empirical Comparison of Time Series Modelling

Researchers must understand that naively relying on the reliability of statistical software packages may result in suboptimal, biased, or erroneous results, which affects applied economic theory and the conclusions and policy recommendations drawn from it. To create confidence in a result, several software packages should be applied to the same estimation problem. This study examines the results of three software packages (EViews, R, and Stata) in the analysis of time-series econometric data. The time-series data analysis which presents the determinants of macroeconomic growth of Sri Lanka from 1978 to 2020 has been used. The study focuses on testing for stationarity, cointegration, and significant relationships among the variables. The Augmented Dickey-Fuller and Phillips Perron tests were employed in this study to test for stationarity, while the Johansen cointegration test was utilized to test for cointegration. The study employs the vector error correction model to assess the short-run and long-term dynamics of the variables in an attempt to determine the relationship between them. Finally, the Granger Causality test is employed in order to examine the linear causation between the concerned variables. The study revealed that the results produced by three software packages for the same dataset and the same lag order vary significantly. This implies that time series econometrics results are sensitive to the software that is used by the researchers while providing different policy implications even for the same dataset. The present study highlights the necessity of further analysis to investigate the impact of software packages in time series analysis of economic scenarios.

Discussion on Collaborative Teaching of Econometrics in the Field of Environmental Economics

To capitalize on the synergies between the Econometrics course and the Environmental Economics major,this paper aims to enhance students’ability to conduct empirical analysis and practical application using econometric models.It also seeks to promote collaborative teaching through case studies and model research.The primary focus is on the hot research issues within the field of environmental economics,utilizing the econometric model as a vehicle for instruction.To achieve this,the paper proposes the development of a comprehensive case library specific to environmental economics.This resource will serve to optimize the case teaching approach,incorporating the use of econometric software,and fostering interactive teaching models between educators and students.By implementing these strategies,the paper outlines a path and mode for collaborative teaching that effectively bridges the gap between econometrics and environmental economics.

The Impact of Urbanization and Factor Inputs on China's Economic Growth--A Spatial Econometrics Approach

This paper utilizes a panel data of 31 provinces in China spanning from 2007 to 2014.Spatial econometrics is applied to carry out regression analysis of the impact of urbanization and factor inputs on China's economic growth.By comparing differences among regions,this paper finds that in the regional level,the positive effect of urbanization in the Eastern region and the Western region is significant,and the positive effect of the proportion of input factors in the Central region is also significant but to a lesser extent.In general,there exists spatial spill-over effect between urbanization and factor inputs structure and economic growth,i.e.,both are capable of producing positive effect,but the input role played by the scale factor has diminishing marginal effect.Urbanization is more likely to become the driving force of economic growth and to stimulate economic growth.

Innovative Research on the Blending Learning Mode of Econometrics

Due to the outbreak of the Covid-19 in 2020,online education has become the mainstream.After the epidemic,the blending learning mode has also become a key goal of the teaching reform of colleges and universities,and the blending learning mode of various courses has blossomed everywhere.In this context,this paper used the Econometrics course as the carrier,analyzed the many unreasonable problems in the traditional Econometrics course,and proposed an optimization plan and path for the blending learning mode to address these problems.

Using Spatial Econometrics to Measure Ozone Pollution Externalities

This paper summarizes my previous work in Lin (2010), in which I use spatial econometrics to analyze air pollution externalities. In Lin (2010), state-by-state source-receptor transfer coefficients that can be used as a basis for a location- differentiated permit system are estimated. Results affirm the importance of regional transport in determining local ozone air quality, although owing to non-monotonicities in ozone production the externality is not always negative. Because the origin of emissions matters, results also reject a non-spatially differentiated NOx cap and trade program as an appropriate mechanism for reducing ozone smog.

Time Series Econometrics: A Critique

This is a critical note regarding the currently established econometrics of time series. The criticism involves commonly practiced mechanistic modeling and testing of relationships, taking econometrics away from economics. Among others, modeling economic trends as simple functions of time is extremely naive and testing for cointegration lacks a proper economic foundation.

关于"Econometrics"学术译名的统一问题

本文讨论"Econometrics"的学术译名应该是"经济计量学"还是"计量经济学"的问题。作者从英文翻译习惯、语法结构、学科形成若干条件、与统计学的关系、实际用法、学科名称惯例六个方面阐述了作者主张采用"经济计量学"译名的观点。

Analysis of spatial distribution characteristics and driving factors of ethnicminority villages in China using geospatial technology and statistical models

This study aims to reveal the spatial structural characteristics of 1,652 Ethnic-Minority Villages(EMV)in China and to analyze the mechanisms driving their spatial heterogeneity.EMV are a special type of settlement space that preserve a large number of historical traces of the ethnic culture of ancient China.They are important carriers of China’s excellent traditional culture and are key to the implementation of rural revitalization strategies.In this study,1652 EMV in China were selected as the research subjects.The Nearest Neighbor Index,kernel density,and spatial autocorrelation index were employed to reveal the spatial structural characteristics of minority villages.Neural network models,spatial lag models,and geographical detectors were used to analyze the formation mechanism of spatial heterogeneity in EMV.The results indicate that:(1)EMV exhibit significant spatial differentiation characterized by“single-core with multiple surrounding sub-centers,”“polarization between east and west,”“decreasing quantity from southwest to east coast to northeast to northwest,”and“large dispersion with small agglomeration.”(2)EMV are mainly distributed in areas rich in intangible cultural heritage,with high vegetation coverage and low altitude,far from central cities,and having limited arable land and an underdeveloped economy and transportation,particularly in shaded or riverbank areas.(3)Distance from the nearest river(X3),distance from central cities(X8),national intangible cultural heritage(X9),and NDVI(X10)were the main driving factors affecting the spatial distribution of EMV,whereas elevation(X1)and GDP(X5)had the weakest influence.As EMV are a relatively unique territorial spatial unit,the identification of their spatial heterogeneity characteristics not only deepens the research content of settlement geography,but also involves the assessment,protection,and development of Minority Villages,which is of great significance for the inheritance and utilization of excellent ethnic cultures in the era.

Emission-side drivers affecting carbon neutrality based on vegetation carbon sequestration:Evidence from China

To address climate change,the world needs deep decarbonization to achieve carbon neutrality(CN),which implies net-zero human-caused CO_(2) emissions in the atmosphere.This study used emission-side drivers,including socioeconomic and net primary productivity(NPP)-based factors,to determine the changes in CN based on vegetation carbon sequestration in the case of China during 2001-2015.Spatial exploratory analysis as well as the combined use of production-theoretical decomposition analysis(PDA)and an econometric model were also utilized.We showed that CN was significantly spatially correlated over the study period;Yunnan,Heilongjiang,and Jilin presented positive spatial autocorrelations,whereas Guizhou showed a negative spatial autocorrelation.More than half of CN declined over the period during which potential energy intensity(PEIE)and energy usage technological change were the largest negative and positive drivers for increasing CN.PEIE played a significantly negative role in increasing CN.We advise policymakers to focus more on emission-side drivers(e.g.,energy intensity)in addition to strengthening NPP management to achieve CN.

A Comparative Study on Factors Influencing Food Security in China and India

This paper analyzes and compares the key factors influencing food security in two populous countries(China and India),and cate-gorizes them into three types:agricultural production,economic development and income level,and income distribution.Using the prevalence of undernourishment as an indicator of food security,the paper empirically tests the degree of impact of various factors on food security in both countries using Tobit regression and Newey regression methods.The study finds that improving the level of economic development can significantly enhance food security in both countriesꎻreducing the Gini coefficient has a significant impact on India,but not on Chinaꎻincreasing the agricultural production per capita has a much greater effect on China than on India.Therefore,both countries should take measures that are both similar and different according to their national conditions to improve their food security level.

Measurement Analysis and Evaluation of Twenty-Five Years of Mathematics Education Research in China:Visual Econometric Analysis Based on CiteSpace Knowledge Mapping(1999-2024)

Since the new century,China’s mathematics curriculum reform in basic education has continued to move forward in attempts and explorations,presenting many new changes,trends,movements,and developments.Sorting out,analyzing,and summarizing the achievements,experiences,problems,and challenges in this journey are conducive to providing insights for the reform and development of the Chinese basic education mathematics curriculum in the new era.This paper analyses the research on mathematics education in China(1999-2024)using the visual measurement of CiteSpace knowledge mapping,hoping to provide directions for the future of mathematics education in China.

Local Linear Estimation by TSLS with Variable Bandwidth for Semi-parametric Simultaneous Equation Models in Econometrics

Econometric simultaneous equation models play an important role in making economic policies, analyzing economic structure and economic forecasting. This paper presents local linear estimators by TSLS with variable bandwidth for every structural equation in semi-parametric simultaneous equation models in econometrics. The properties under large sample size were studied by using the asymptotic theory when all variables were random. The results show that the estimators of the parameters have consistency and asymptotic normality, and their convergence rates are equal to n^-1/2. And the estimator of the nonparametric function has the consistency and asymptotic normality in interior points and its rate of convergence is equal to the optimal convergence rate of the nonparametric function estimation.

Can environmental sustainability be decoupled from economic growth? Empirical evidence from Eastern Europe using the common correlated effect mean group test

The European Union(EU) and Organisation for Economic Co-operation and Development(OECD) aim to develop long-term policies for their respective member countries. Having observed increasing dangers to the environment posed by rising economic growth, they are seeking pathways to enable policy action on economic growth and environmental sustainability. Given the facts in theoretical and empirical studies, this study assessed the validity of the decoupling hypothesis by investigating asymmetricity in the relationship between environmental sustainability and economic growth in nine Eastern European countries from 1998 to 2017 using the cross-section augmented Dickey-Fuller(CADF) unit root, panel corrected standard error(PCSE), common correlated effect mean group(CCEMG), and Dumitrescu Hurlin causality approaches. Both population growth and drinking water are used as controlled variables. The outcomes establish strong cointegration among all the variables of interest. According to the results of CCEMG test, economic growth exerts short-term environmental degradation but has long-term environmental benefits in Eastern Europe;and population growth and drinking water exert a positive effect on environmental sustainability in both the short-and long-run. The results of Dumitrescu Hurlin causality test indicate that environmental sustainability is unidirectionally affected by economic growth. Based on these outcomes, we suggest the following policies:(1) the EU and OECD should implement member-targeted policies on economic growth and fossil-fuel use towards regulating industrial pollution, water use, and population control;and(2) the EU and OECD member countries should invest in environmental technologies through green research and development(R&D) to transform their dirty industrial processes and ensure productive energy use.

Toward a sustainable growth path in Arab economies:an extension of classical growth model

Background/Objectives:Many economies are on the trajectory of alternative growth drivers other than conventional capital and labor.Access to credit facilities is a pertinent indicator of economic growth.In line with the United Nations Sustainable Development Goals(UNSDGs-8)agenda,the national goal for sustainable development for most economies and Arab economies is no exception.Therefore,the current study adopts a traditional growth model by exploring the relationship between gross domestic product(GDP)per capita,credit for private sectors,ratio of exports,real GDP,and per labor force participants for selected Arab economies annually from 2001 to 2020.Research design:This study leverages the Fourier Kwiatkowski–Phillips–Schmidt–Shin(KPSS)unit root test and second-generation panel econometrics as estimation techniques,such as Westerlund and Edgerton panel cointegration test,and the use of two estimators,namely the augmented mean group(AMG)and common correlated error mean group(CCEMG),to obtain robust results.Findings:Empirical findings from Westerlund and Edgerton panel cointegration tests validate the long-run equilibrium relationship among the outlined variables.Further empirical results indicate that the share of exports is negatively significant with economic growth in countries such as Kuwait,Lebanon,Tunisia,and Jordan.Additionally,savings and labor force participation have a positive relationship with economic growth in individual countries such as Algeria and Bahrain.As per the panel,there is no significant relationship between labor force participation and economic growth.This indicates that the skilled labor force enhanced economic growth.Conclusions:These findings come with inherent far-reaching policy suggestions for economies and panels.Further details on country-specific policy actions are presented in the concluding section.

Data envelopment analysis for scale elasticity measurement in the stochastic case:with an application to Indian banking

In the nonparametric data envelopment analysis literature,scale elasticity is evaluated in two alternative ways:using either the technical efficiency model or the cost efficiency model.This evaluation becomes problematic in several situations,for example(a)when input proportions change in the long run,(b)when inputs are heterogeneous,and(c)when firms face ex-ante price uncertainty in making their production decisions.To address these situations,a scale elasticity evaluation was performed using a value-based cost efficiency model.However,this alternative value-based scale elasticity evaluation is sensitive to the uncertainty and variability underlying input and output data.Therefore,in this study,we introduce a stochastic cost-efficiency model based on chance-constrained programming to develop a value-based measure of the scale elasticity of firms facing data uncertainty.An illustrative empirical application to the Indian banking industry comprising 71 banks for eight years(1998–2005)was made to compare inferences about their efficiency and scale properties.The key findings are as follows:First,both the deterministic model and our proposed stochastic model yield distinctly different results concerning the efficiency and scale elasticity scores at various tolerance levels of chance constraints.However,both models yield the same results at a tolerance level of 0.5,implying that the deterministic model is a special case of the stochastic model in that it reveals the same efficiency and returns to scale characterizations of banks.Second,the stochastic model generates higher efficiency scores for inefficient banks than its deterministic counterpart.Third,public banks exhibit higher efficiency than private and foreign banks.Finally,public and old private banks mostly exhibit either decreasing or constant returns to scale,whereas foreign and new private banks experience either increasing or decreasing returns to scale.Although the application of our proposed stochastic model is illustrative,it can be potentially applied to all firms in the information and distribution-intensive industry with high fixed costs,which have ample potential for reaping scale and scope benefits.

Is there regional convergence between Morocco and its OECD partner countries in terms of well-being?

Morocco wants its 12 regions to play the role as the main lever of its public policies to initiate harmonized spatial multidimensional development. In the context of this goal and Morocco’s openness over the past two decades to bilateral and multilateral cooperation in an effort toward regional integration, this article studies the convergence of 389 regions in 36 countries(Morocco and 35 of its partner member countries in the Organization for Economic Co-operation and Development(OECD)) between 2000 and 2019 in terms of well-being. To this end, we considered the territorial dimension of β-convergence models for well-being and its four domains(economic, social, environmental, and governance). Then, we adapted the absolute β-convergence model by taking into account the existence of spatial heterogeneity according to five specifications of spatial models. Thus, apart from environmental domain, we found that β-convergence of regions is significant for well-being and three of its domains(economic, social, and governance). These convergences are made by a spatially autocorrelated error model(SEM). However, the speed and period of convergence are relatively low for social domain, partly explaining the very exacerbated tensions at the territorial level. The fastest convergence was achieved in governance domain, followed by economic domain. This suggests that emerging countries must pay particular attention to national public action in favor of social cohesion at the territorial level. The lack of convergence in environmental domain calls for common actions for all countries at the supranational level to protect the commons at the territorial level.

Asymmetric Price Transmission Analysis of the International Soybean Market

This study analyzed the asymmetric price transmission in the international soybean market, using data from the US (Chicago Futures), European (Rotterdam), Brazilian (Paranaguá), Argentinian (Rosario Futures and Rosario Spot), and Chinese (Spot and Futures) markets. The study looked at the price transmission between these markets over a period of almost 10 years, from September 2009 to May 2019. The Phillips-Perron unit root test was used to determine the order of integration of the time series. The Engle-Granger cointegration test failed to find any evidence of cointegration between the Chinese and Argentinian markets with any others of the international markets. The lack of cointegration was associated with highly government intervened markets. The cointegration and threshold test proposed by Enders and Siklos, succeeded in rejecting the Null hypothesis and finding cointegration among the series after structural breaks had been taken into account. The BDS test for nonlinearity showed that most of the time series were nonlinear, which prompted the investigation to look into nonlinear modelling. To evaluate asymmetric price transmission, the study used the Threshold autoregressive (TAR) model and the momentum threshold model (MTAR). The Argentine and Chinese markets were primarily suspected of exhibiting asymmetric price transmission due to structural government intervention. However, the test results failed to reject the null hypothesis and revealed asymmetric price transmission between these markets and the international market. As expected, the results found no evidence of asymmetric price transmission in the Paranaguá, Rotterdam, and Chicago markets. Hence, it can be concluded that symmetric price transmission is more prevalent in the global soybean market than asymmetric price transmission.

Analysis on the Spatial Agglomeration and Coupling of Socioeconomic Factors in Qinghai Tourism Under the Background of“Belt and Road”

Qinghai is the strategic base and important fulcrum of the Belt and Road Initiative while tourism is a strategic pillar industry in Qinghai Province.Due to its rich tourism resources and unique ecological environment,the integration of tourism in Qinghai into the Belt and Road has attracted great attention of the Asian Development Bank(ADB).With the spatial data of tourism elements POI and the statistical data of 44 counties in Qinghai to analyze the characteristics and influencing factors of the spatial agglomeration of tourism in Qinghai,the paper conducts research on spatial coupling and concludes with the following results:The spatial agglomeration of tourism in Qinghai presents the distribution pattern of“one circle and one belt”;economic density and population density play an important role in the formation of the spatial agglomeration pattern of tourism with some spatial spillovers;Belt and Road has a significant impact on the promotion of tourism agglomeration in Qinghai.The paper suggests that tourism in Qinghai should fully integrate into the Belt and Road,giving full play to the guiding role of Belt and Road in the allocation of social and economic resources,and optimizing the spatial layout.

Urban Agglomerations in China: Characteristics and Influencing Factors of Population Agglomeration

Urban agglomeration(UA)is an advanced spatial economic form formed and developed in the process of rapid industrialization and urbanization,and an important carrier of urbanization and economic development.The economy has developed rapidly in the recent decades of China,and the UAs have also developed rapidly.However,as a large population country,the population distribution and changes of UAs in China has unique characteristics.Using the fifth,sixth and seventh population census data,spatial auto-correlation and spatial econometric models,we analyzed the spatial-temporal evolution characteristics and influencing factors of population agglomeration in China’s UAs.Results revealed that:1)from 2000 to 2020,the population gradually converged into UAs,and the characteristics of population agglomeration in different development degree of UAs differ.The higher the development degree of UA,the higher the population agglomeration degree.Besides,UAs are the main area with the most significant population agglomeration degree,and the spatial autocorrelation show that the cities with similar degree tend to be concentrated in space.The urban population gathering in UAs has a certain positive spillover effect on population size of neighboring cities.2)Economic development and social conditions factors are important factors affecting population agglomeration degree in UAs.The main factors of population gather into UAs are similar with the outside UAs,but the positive promotion of urbanization rate and proportion of tertiary industry in GDP on population agglomeration of UAs in China are enhancing from 2000 to 2020.Meanwhile,the other factors,such as high-quality public services,good urban living environment conditions,high-quality medical and educational resources,are also important factors to promote urban population gather into UAs.This study provides a basis for formulating the development planning of UAs in China,and enriches the relevant theoretical research of population evolution and influencing factors of UAs.