Hands-On Intermediate Econometrics Using R

Abstracts not available for BookReview

Household saving behavior under liquidity constraints

Binding liquidity constraints is a commonly cited explanation for the empirical failure of the standard life-cycle permanent income hypothesis. The down payment required for a mortgage loan is a well defined liquidity constraint and an average household faces this limitation at some point in their lifetime. Consequently, we propose an original dynamic model custom-tailored for studying the impact of this constraint type on household consumption and saving. In our model, the consumer deliberately sacrifices today\u27s consumption in order to accumulate the down payment required for the purchase of a high denomination asset, which provides a steady stream of utility for a long period. We provide empirical support for the model by conducting a pooled cross-sectional analysis using the Panel Study of Income Dynamics (P.S.I.D.) data on U.S. households covering different periods between 1984 and 2003. Notwithstanding the relatively low borrowing constraints, we find evidence that a significant part of the overall household saving can be explained with liquidity constraints in the form of down payments. This result is useful for explaining various issues in the literature such as the cross-country and long-run within a country variations in saving rates. (JEL E21

Modern Mikroekonomiye Giriş

[No abstract available]Giriş -- Piyasa dengesi -- Esneklik -- Ekonomik etkinlik ve devletin rolü -- Tüketim kuramı -- Üretim kuramı -- Üretim giderleri -- Tam rekabet -- Tekel -- Tekelci rekabet -- Oligopol -- Faktör piyasaları -- Piyasa aksaklıkları -- Gelir dağılımı

Dependency on imported oil and its effects on current account

Oil price hikes can have disruptive effects on the current account balances of oil-importing developing countries, which largely depend on external energy sources for domestic output. Nonetheless, the relation between oil prices and current account has been analyzed only in a limited number of studies for the developing countries. This paper contributes to the literature by examining the dynamics of how oil prices impact the current account in Turkey for the period between 2004 and 2015. For this purpose, a rolling window analysis using an advanced resampling technique, namely maximum entropy bootstrap (meboot), for strongly dependent time series data was performed. The empirical results reveal that oil price fluctuations have considerable effects on Turkey's current account balance. In order to curtail the current account deficit, it is crucial that Turkey redesigns its energy policies and seeks alternative energy sources