PLAYBOOKS AND CHECKBOOKS: AN INTRODUCTION TO THE ECONOMICS, OF MODERN SPORTS, S. Szymanski, Princeton University Press, Princeton, 2009, 225 pages. ISBN 978-0-691-12750-7

Simon Rottenberg is credited with starting the literature on sports economics in 1956 with his analysis of major league baseball’s labour market. Over fifty years later, sports economics has evolved from the study of sports labour markets to the sophisticated use of sports datasets to test previously unexplored hypotheses in the growing fields of sportometrics and forensic econometrics (see McCormick and Tollison 1984 and Duggan and Levitt 2002). Stefan Szymanski’s Playbooks and Checkbooks gives an engaging overview of how economics can help explain the phenomenon that is modern-day professional sports which is coupled with relevant historical anecdotes.doping; economics of sport; illegal activities

Does the interest differential explain future exchange rate return? a re-examination of the UIP hypothesis for the Turkish economy

Akyuz, Y. and Boratav, K. (2003). The making of the Turkish financial crisis, World Development, 31/9, 1549-1566. Alper, C.E. (2001). The Turkish liquidity crisis of 2000: What went wrong, Russian and East European Finance and Trade, 37/6, 51-71. Aslan, O. and Korap L. (2007). Structural VAR identification of the Turkish business cycles, International Research Journal of Finance and Economics, 9, 72-86. Baillie, R.T. and Bollerslev, T. (2000). The forward premium anomaly is not as bad as you think, Journal of International Money and Finance, 19, 471-488. Beyaert, A., García-Solanes, J., and Pérez-Castejón, J.J. (2007). Uncovered interest parity with switching regimes, Economic Modelling, 24, 189-202. Bhatti, R.H. and Moosa, I.A. (1995). An alternative approach to testing uncovered interest parity, Applied Economics Letters, 2, 478-481. Chinn, M.D. and Meredith, G. (2004). Monetary policy and long-horizon uncovered interest parity, IMF Staff Papers, 51/3, 409-430. DeJong, D. N., Nankervis, J. C., Savin, N. E. and Whiteman, C. H. (1989). Integration versus trend-stationarity in macroeconomic time-series, University of Iowa Working Paper Series, No. 89/31, December. Dickey, D. A., Jansen, D. W. and Thornton, D. L. (1991). A primer on cointegration with an application to money and income, The Federal Reserve Bank of St. Louis Review, March/April, 58-78. Dornbusch, R. (2001). A primer on emerging market crises, NBER Working Paper, 8326, June. Dulger, F. and Cin, M.F. (2002). Monetary approach to determining exchange rate dynamics in Turkey and a test for co-integration (in Turkish), METU Studies in Development, 29/1-2, 47-68. Eichengreen, B. (2001). Crisis preventation and management: Any new lessons from Argentina and Turkey?, Background Paper Written for the World Bank’s Global Development Finance 2002, University of California, Berkeley. Ekinci, N.K. and Erturk, K.A. (2007). Turkish currency crisis of 2000-2001, revisited, International Review of Applied Economics, 21/1, January, 29-41. Engle, R. F. and Granger, C. W. J. (1987). Co-integration and error correction: Representation, estimation, and testing, Econometrica, 55, 251-276. Ertugrul, A. and Yeldan, E. (2002). On the structural weakness of the post-1999 Turkish disinflation program, Turkish Studies Quarterly, 4/2, 53-67. Flood, R.P. and Rose, A.K. (2002). Uncovered interest parity in crisis, IMF Staff Papers, 49/2, 252-266. Granger, C. W. J. (1986). Developments in the study of cointegrated economic variables, Oxford Bulletin of Economics and Statistics, 48/3, 213-228. Granger, C.W.J. and Newbold, P. (1974). Spurious regressions in economics, Journal of Econometrics, 2/2, 111-120. Huisman, R., Koedijk, K., Kool, C., and Nissen, F. (1998). Extreme support for uncovered interest parity, Journal of International Money and Finance, 17, 211-228. Isard, P. (2006). Uncovered interest parity, IMF Working Paper, WP/06/96. Johansen, S. (1988). Statistical analysis of cointegration vectors, Journal of Economic Dynamics and Control, 12, 231-254. Johansen, S. and Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration-with applications to the demand for money, Oxford Bulletin of Economics and Statistics, 52, 169-210. Kesriyeli, M. (1994). Policy regime changes and testing for the Fisher and UIP hypothesis: The Turkish experience, CBRT Research Department Discussion Paper, No. 9411, December. Kwiatkowski, D., Phillips, P.C.B., Schmidt, P. and Shin, Y. (1992). Testing the null hypothesis of stationary against the alternative of a unit root, Journal of Econometrics, 54, 159-178. Leigh, D. and Rossi, M. (2002). Exchange rate pass-through in Turkey, IMF Working Paper, WP/02/2004. MacKinnon, J.G. (1996). Numerical distribution functions for unit root and cointegration tests, Journal of Applied Econometrics, 11, 601-618. McCallum, B. T. (1994). A reconsideration of the uncovered interest parity relationship, Journal of Monetary Economics, 33, 105-132. Phillips, P. (1986). Understanding spurious regressions in econometrics, Journal of Econometrics, 33, 311-40. Sachsida, A., Ellery Jr., R. and Teixeira, J.R. (2001). Uncovered interest parity and the peso problem: The Brazilian case, Applied Economics Letters, 8, 179-181. Sul, D. (1999). Does ex-post uncovered interest differential reflect the degrees of capital mobility?, Applied Economics Letters, 6, 97-102. Uygur, E. (2001). From crisis to crisis in Turkey: 2000 November and 2001 February crises (in Turkish), Turkish Economic Association Discussion Paper, 2001/1.Exchange rates ; Interest differentials ; Uncovered interest parity ; Turkish economy ;

Variation, jumps, market frictions and high frequency data in financial econometrics

We will review the econometrics of non-parametric estimation of the components of the variation of asset prices. This very active literature has been stimulated by the recent advent of complete records of transaction prices, quote data and order books. In our view the interaction of the new data sources with new econometric methodology is leading to a paradigm shift in one of the most important areas in econometrics: volatility measurement, modelling and forecasting. We will describe this new paradigm which draws together econometrics with arbitrage free financial economics theory. Perhaps the two most influential papers in this area have been Andersen, Bollerslev, Diebold and Labys(2001) and Barndorff-Nielsen and Shephard(2002), but many other papers have made important contributions. This work is likely to have deep impacts on the econometrics of asset allocation and risk management. One of our observations will be that inferences based on these methods, computed from observed market prices and so under the physical measure, are also valid as inferences under all equivalent measures. This puts this subject also at the heart of the econometrics of derivative pricing. One of the most challenging problems in this context is dealing with various forms of market frictions, which obscure the efficient price from the econometrician. Here we will characterise four types of statistical models of frictions and discuss how econometricians have been attempting to overcome them.

TEACHING OF BEHAVIORAL AND EXPERIMENTAL ECONOMICS AND THE PROSPECTS FOR TEACHING IT IN DEVELOPING COUNTRIES: A SURVEY

The rising trend of behavioral and experimental economics is observed through a survey of the top 100 academic institutions in economics and econometrics. The survey found that this subject is relatively popular with around 44% of academic institutions offering this course to undergraduate students. Another survey on publication interest found a surge since 2002 that was experienced by this subject along with only a few other subjects such as labor economics and business economics. Lastly, four short experiments on undergraduate students were conducted in Indonesia to explain economics, and this activity seems to support the studentcentered learning that has since became the focus of the Directorate General of Higher Education in Indonesia

The co-movement between cotton and polyester prices

The authors examine the price linkages among polyester (the dominant chemical fiber), cotton (the dominant natural fiber), and crude oil (the dominant energy commodity), based on monthly data between 1980 and 2002. The modeling framework incorporates several aspects of the unit root econometrics literature. They find that: a) There is strong co-movement between cotton and polyester prices, well above the co-movement observed between these two prices and prices of other primary commodities. b) Crude oil prices have a stronger effect on polyester prices compared with cotton prices. c) Price shocks originating in the polyester market are transmitted at much higher speed to the cotton market than vice-versa.Markets and Market Access,Access to Markets,Textiles, Apparel&Leather Industry,Environmental Economics&Policies,Crops&Crop Management Systems

A Note On The Use Of Quantile Regression In Beta Convergence Analysis

We discuss how to interpret conflicting results obtained by the use of quantile regression methods in growth regression tests of I̊2-convergence hypothesis and the results obtained by nonparametric methods. We show that the assumption of linearity may cause the non-rejection of the I̊2-convergence hypothesis by quantile regression. We also show that using a nonparametric form of quantile regression, we can reject the hypothesis of I̊2-convergence and confirm the results of divergence and formation of convergence clubs. We illustrate the discussion by using the conflicting results on convergence found in the dataset of per-capita income of Brazilian municipalities between 1970 and 1996.352Andrade, E., Laurini, M.P., Madalozzo, R., Valls Pereira, P.V., Convergence clubs among Brazilian municipalities (2004) Economics Letters, 83 (2), pp. 179-184Andrade, E., Laurini, M.P., Madalozzo, R., Valls Pereira, P.V., Testing convergence across municipalities in Brazil using quantile regression (2003) In Proceedings of 18 Meeting of European Economic AssociationAzariadis, C., Drazen, A., Threshold externalities in economic development (1990) Quarterly Journal of Economics, 105 (2), pp. 501-526Barreto, R.A., Hughes, A.W., Under performers and over achievers: A quantile regression analysis of growth (2004) Economic Record, 80, pp. 17-35Barro, R., Economic growth in a cross-section of countries (1991) Quarterly Journal of Economics, 106 (2), pp. 407-443Bernard, A., Durlauf, S., Interpreting tests of the convergence hypothesis (1996) Journal of Econometrics, 71, pp. 161-173Bosch, R.J.Y., Ye, Y., Woodworth, G.G., A Convergent algorithm for the quantile regression with smoothing splines (1995) Computational Statistics & Data Analysis, 19, pp. 613-630Durlauf, S., Johnson, P., Temple, J., Handbook of Economic Growth, chap (2005) Growth econometrics, pp. 5-41. , North-HollandFan, J., Yao, Q., (2003) Nonlinear Time Series: Nonparametric and Parametric Methods, , SpringerFan, J., Zhang, C., Zhang, J., Generalized likelihood ratio statistics and Wilks phenomenon (2001) The Annals of Statistics, 29, pp. 153-193Friedman, M., Do old fallacies ever die? (1992) Journal of Economic Literature, 30, pp. 2129-2132Hardle, W., (1990) Applied Nonparametric Regression, , Cambridge University PressKoenker, R., Basset, G., Regression quantiles (1978) Econometrica, 46, pp. 33-50Koenker, R., Galton, Edgeworth, Frisch, and prospects for quantile regression in econometrics (2000) Journal of Econometrics, 95, pp. 347-374Koenker, R., (2005) Quantile Regression, , Cambridge University PressLaurini, M.P., Andrade, E., Valls Pereira, P.V., Income convergence clubs for Brazilian Municipalities: A non-parametric analysis (2005) Applied Economics, 37 (18), pp. 2099-2118Lucas, R., On the mechanics of economic development (1988) Journal of Monetary Economics, 22 (1), pp. 3-42Mello, M., Novo, A., (2002) The new empirics of economic growth: Quantile regression estimation of growth equations, , Unpublished Working PaperMello, M., Perrelli, R., Growth equations: A quantile regression exploration (2003) The Quarterly Review of Economics and Finance, 43 (4), pp. 643-667Miles, W., Human capital and economic growth: A quantile regression approach (2004) Applied Econometrics and International Development, 2Nelsen, R., (1999) An Introduction to Copulas, , Lectures Notes in Statistics, Springer VerlagQuah, D., Galton's fallacy and tests of convergence hypothesis (1993) Scandinavian Journal of Economics, 95 (4), pp. 427-443Quah, D., Empirics for growth and distribution: Stratificiation, polarization and convergence clubs (1997) Journal of Economic Growth, 2, pp. 27-59Romer, P., Increasing returns and long run growth (1986) Journal of Political Economy, 94 (5), pp. 1002-1037Solow, R., A contribution to the theory of economic growth (1956) Quarterly Journal of Economics, 70, pp. 65-94Swan, T., Economic growth and capital accumulation (1956) Economic Record, 32, pp. 334-36

The role of seaports in regional employment: evidence from South Korea

<p>The role of seaports in regional employment: evidence from South Korea. <i>Regional Studies</i>. This study examines the seaport’s influence on regional employment in all 16 regions of Korea, including seven metropolitan areas, based on panel data between 2002 and 2013. It expands an economic model of regional unemployment from labour economics and an autoregressive model from econometrics by employing port potentials separately estimated in a Tobit model. The result indicates that port activities significantly reduce regional unemployment rates relative to the national level. The role of population, gross domestic product (GDP) and household income on unemployment rate was highlighted, whilst various determinants of port potentials were investigated about whether they stimulate port potentials.</p

Does the interest differential explain future exchange rate return? a re-examination of the UIP hypothesis for the Turkish economy

Akyuz, Y. and Boratav, K. (2003). The making of the Turkish financial crisis, World Development, 31/9, 1549-1566. Alper, C.E. (2001). The Turkish liquidity crisis of 2000: What went wrong, Russian and East European Finance and Trade, 37/6, 51-71. Aslan, O. and Korap L. (2007). Structural VAR identification of the Turkish business cycles, International Research Journal of Finance and Economics, 9, 72-86. Baillie, R.T. and Bollerslev, T. (2000). The forward premium anomaly is not as bad as you think, Journal of International Money and Finance, 19, 471-488. Beyaert, A., García-Solanes, J., and Pérez-Castejón, J.J. (2007). Uncovered interest parity with switching regimes, Economic Modelling, 24, 189-202. Bhatti, R.H. and Moosa, I.A. (1995). An alternative approach to testing uncovered interest parity, Applied Economics Letters, 2, 478-481. Chinn, M.D. and Meredith, G. (2004). Monetary policy and long-horizon uncovered interest parity, IMF Staff Papers, 51/3, 409-430. DeJong, D. N., Nankervis, J. C., Savin, N. E. and Whiteman, C. H. (1989). Integration versus trend-stationarity in macroeconomic time-series, University of Iowa Working Paper Series, No. 89/31, December. Dickey, D. A., Jansen, D. W. and Thornton, D. L. (1991). A primer on cointegration with an application to money and income, The Federal Reserve Bank of St. Louis Review, March/April, 58-78. Dornbusch, R. (2001). A primer on emerging market crises, NBER Working Paper, 8326, June. Dulger, F. and Cin, M.F. (2002). Monetary approach to determining exchange rate dynamics in Turkey and a test for co-integration (in Turkish), METU Studies in Development, 29/1-2, 47-68. Eichengreen, B. (2001). Crisis preventation and management: Any new lessons from Argentina and Turkey?, Background Paper Written for the World Bank’s Global Development Finance 2002, University of California, Berkeley. Ekinci, N.K. and Erturk, K.A. (2007). Turkish currency crisis of 2000-2001, revisited, International Review of Applied Economics, 21/1, January, 29-41. Engle, R. F. and Granger, C. W. J. (1987). Co-integration and error correction: Representation, estimation, and testing, Econometrica, 55, 251-276. Ertugrul, A. and Yeldan, E. (2002). On the structural weakness of the post-1999 Turkish disinflation program, Turkish Studies Quarterly, 4/2, 53-67. Flood, R.P. and Rose, A.K. (2002). Uncovered interest parity in crisis, IMF Staff Papers, 49/2, 252-266. Granger, C. W. J. (1986). Developments in the study of cointegrated economic variables, Oxford Bulletin of Economics and Statistics, 48/3, 213-228. Granger, C.W.J. and Newbold, P. (1974). Spurious regressions in economics, Journal of Econometrics, 2/2, 111-120. Huisman, R., Koedijk, K., Kool, C., and Nissen, F. (1998). Extreme support for uncovered interest parity, Journal of International Money and Finance, 17, 211-228. Isard, P. (2006). Uncovered interest parity, IMF Working Paper, WP/06/96. Johansen, S. (1988). Statistical analysis of cointegration vectors, Journal of Economic Dynamics and Control, 12, 231-254. Johansen, S. and Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration-with applications to the demand for money, Oxford Bulletin of Economics and Statistics, 52, 169-210. Kesriyeli, M. (1994). Policy regime changes and testing for the Fisher and UIP hypothesis: The Turkish experience, CBRT Research Department Discussion Paper, No. 9411, December. Kwiatkowski, D., Phillips, P.C.B., Schmidt, P. and Shin, Y. (1992). Testing the null hypothesis of stationary against the alternative of a unit root, Journal of Econometrics, 54, 159-178. Leigh, D. and Rossi, M. (2002). Exchange rate pass-through in Turkey, IMF Working Paper, WP/02/2004. MacKinnon, J.G. (1996). Numerical distribution functions for unit root and cointegration tests, Journal of Applied Econometrics, 11, 601-618. McCallum, B. T. (1994). A reconsideration of the uncovered interest parity relationship, Journal of Monetary Economics, 33, 105-132. Phillips, P. (1986). Understanding spurious regressions in econometrics, Journal of Econometrics, 33, 311-40. Sachsida, A., Ellery Jr., R. and Teixeira, J.R. (2001). Uncovered interest parity and the peso problem: The Brazilian case, Applied Economics Letters, 8, 179-181. Sul, D. (1999). Does ex-post uncovered interest differential reflect the degrees of capital mobility?, Applied Economics Letters, 6, 97-102. Uygur, E. (2001). From crisis to crisis in Turkey: 2000 November and 2001 February crises (in Turkish), Turkish Economic Association Discussion Paper, 2001/1

Econometrics: A bird's eye view

As a unified discipline, econometrics is still relatively young and has been transforming and expanding very rapidly over the past few decades. Major advances have taken place in the analysis of cross sectional data by means of semi-parametric and non-parametric techniques. Heterogeneity of economic relations across individuals, firms and industries is increasingly acknowledge and attempts have been made to take them into account either by integrating out their effects or by modeling the sources of heterogeneity when suitable panel data exists. The counterfactual considerations that underlie policy analysis and treatment evaluation have been given a more satisfactory foundation. New time series econometric techniques have been developed and employed extensively in the areas of macroeconometrics and finance. Non-linear econometric techniques are used increasingly in the analysis of cross section and time series observations. Applications of Bayesian techniques to econometric problems have been given new impetus largely thanks to advances in computer power and computational techniques. The use of Bayesian techniques have in turn provided the investigators with a unifying framework where the tasks and forecasting, decision making, model evaluation and learning can be considered as parts of the same interactive and iterative process; thus paving the way for establishing the foundation of the "real time econometrics". This paper attempts to provide an overview of some of these developments