College-High School Wage and Human Capital Price Differentials, and the Role of Mobility for Local Wages in the U.S.

This thesis contains three studies on national and local college wage premia, skill premia, and implications of geographic mobility for local wages. The second chapter investigates the reasons for problems with the standard supply-demand model of skill premium. This chapter shows that the problems of canonical model can be explained by mismeasurement of skills and skill prices. The standard approach assumes changes in wages are driven by changes in skill prices alone, and not by skill levels. We re-estimate the canonical model allowing for changes in skill levels over time. The results show that the demand changes have a much smaller role, and that the elasticity of substitution between college and high school labour is higher compared to the standard approach. The model also yields a much better out-of-sample prediction for the college wage premium. The third chapter examines whether implications of the canonical model continue to hold at the Census regional level using the more general approach in the second chapter. Relaxing the assumption of constant skill levels, this chapter shows that the movements in relative wages mask important trend differences in relative skill prices across regions. The results show that while the standard approach suggests very different relative demand patterns across regions, the alternative approach shows much closer patterns. In addition, elasticities of substitution between college and high school labour are more similar across regions compared to the standard approach. Therefore, differences in changes in relative skill prices across regions are mainly driven by differences in relative skill supply patterns. The fourth chapter presents recent evidence on the comparison of responsiveness of college and high school graduate wages to local demand shocks in the U.S. This chapter shows that there are significant wage effects of local demand shocks in the 1980s, which decline over time for both groups. Moreover, wage effects are deeper for high school graduates during the 1980s and 1990s, but they converge during the 2000s. This is also accompanied by converging annual inter-state mobility rates between the two education groups compared to the 1980s and 1990s, which confirms the importance of labour reallocation across markets

The relationship between income ınequality and financial development: Panel data analysis

If all classes of society cannot benefit equally from the blessings of growth, although economic growth rates reach the desired level, an income inequality problem arises. At a time when income inequality is growing at the global level, governments are looking for various remedies to establish a more equitable distribution of income. Regulation and improvement of financial markets and ensuring financial development are among the solution offers. In this study, the relationship between income inequality and financial development in the period of 2000-2015 was examined for 30 countries. The countries covered are divided into three groups as the countries with the best, medium, and poor performance in terms of financial development. Panel data-based analyses were used. In this context, the Durbin-Hausman panel cointegration test and Common Correlated Error (CCE) coefficient estimator were applied. The findings proved the existence of a long-term relationship between the variables in all country groups. As a result of coefficient estimates, it was determined that the inverted U-hypothesis was valid for the countries with the best performance, the mixed results for the countries with a medium performance, and the partially inequality-narrowing hypothesis was valid for the countries with poor performance

Avrupa Birliği ülkelerinde cari işlemler hesabının sürdürülebilirlik analizi: FADF ve FKSS birim kök testleri

This paper investigates the sustainability of the current account in 27 European Union countries over the period 2005Q1-2020Q3. First, series which is considered as the ratio of the current account to gross domestic product, was applied to the traditional unit root test ADF and the nonlinear unit root test KSS. According to the ADF test, the current account was stationary in 9 countries and according to the KSS test, current account was stationary in 5 countries. Later, nonlinear FADF and FKSS unit root tests based on Fourier were applied. According to the unit root tests results, series were found stationary in 10 countries for FADF and 3 countries for FKSS. ADF and KSS test results are valid for countries whose trigonometric terms are insignificant. According to these results, it can be said that Fourier terms should be considered in unit root tests on the current account.Bu çalışmada 27 Avrupa Birliği Ülkesinin 2005Q1-2020Q3 periyodu için cari işlemler hesabının sürdürülebilirliğinin incelenmesi amaçlanmıştır. Cari işlemler hesabının gayri safi yurtiçi hasılaya oranı olarak ele alınan seriye ilk olarak geleneksel birim kök testlerinden ADF ve doğrusal olmayan birim kök testlerinden KSS testi uygulanmıştır. ADF testine göre 9, KSS testine göre ise 5 ülkede cari işlemler hesabının durağan olduğu gözlemlenmiştir. Daha sonra fourier temelli doğrusal olmayan FADF ve FKSS birim kök testlerine yer verilmiştir. Test sonuçlarına göre FADF için 10, FKSS için 3 ülkede durağanlığa rastlanmıştır. Trigonometrik terimleri anlamsız bulunan ülkeler için ADF ve KSS testi sonuçları geçerlidir. Bu sonuçlara göre, cari işlemler hesabı üzerine yapılan birim kök sınamalarında fourier terimlerinin dikkate alınması gerektiği söylenebili

Küreselleşmenin enerji tüketimi üzerindeki etkisi: EAGLEs ülkelerinden kanıtlar

Energy is seen as one of the critical inputs of the production process to ensure countries' economic and social development. Due to the increasing economic integration between countries in recent years, the relationship between globalization and energy consumption is frequently discussed. To contribute to the discussions on this subject, the effect of the globalization process on energy consumption was investigated in this study. In addition to globalization, economic growth, urbanization, and changes in public expenditures on energy consumption are also examined. In this context, panel data analysis was made for the period 1990-2019 by using annual data of 9 countries called EAGLEs (Emerging and Growth-leading Economies). The analysis framework applied cross-section dependency and Pesaran's (2007) CADF (Cross Sectional Dickey-Fuller) unit root tests. Then, coefficient estimates were made with the random-effects model. The findings show that the increase in globalization increases energy consumption. In addition, it has been determined that economic growth, included in the model as a control variable, has an increasing effect on energy consumption. In addition, it has been observed that the increase in urbanization has reduced effects on energy consumption, but the change in public expenditures has no effect.Enerji, ülkelerin ekonomik ve sosyal gelişmelerini sağlamaları bakımından üretim sürecinin önemli girdilerinden biri olarak görülmektedir. Son yıllarda ülkeler arasında artan ekonomik entegrasyona bağlı olarak küreselleşme ile enerji tüketimi arasındaki ilişki sıklıkla tartışılmaktadır. Bu konudaki tartışmalara katkı sağlamak amacıyla bu çalışmada küreselleşme sürecinin enerji tüketimine olan etkisi araştırılmıştır. Küreselleşmenin yanında ekonomik büyüme, kentleşme ve kamu harcamalarındaki değişimin de enerji tüketimi üzerindeki etkisi belirlenmeye çalışılmıştır. Bu kapsamda EAGLEs (Yükselen ve Büyümede Öncü Ekonomiler) olarak adlandırılan 9 ülkeye ait yıllık veriler kullanılarak 1990-2019 dönemi için panel veri analizi yapılmıştır. Analiz çerçevesinde, ilk olarak yatay kesit bağımlılığı ve Pesaran (2007)’nin CADF (Cross Sectional Dickey-Fuller) birim kök testleri uygulanmıştır. Daha sonra tesadüfi etkiler modeliyle katsayı tahminleri yapılmıştır. Elde edilen bulgular küreselleşme düzeyindeki artışın enerji tüketimini arttırdığını göstermiştir. Ayrıca kontrol değişken niteliğinde modele dahil edilen ekonomik büyümenin de enerji tüketimini arttırıcı etkilerde bulunduğu tespit edilmiştir. Ayrıca enerji tüketiminde kentleşmedeki artışın azaltıcı etkilerinin olduğu fakat kamu harcamalarındaki değişimin bir etkisinin olmadığı görülmüştür

A bootstrap efficiency analysis based on economic sensitivity for the first term of covid-19

No situation similar to the Covid-19 pandemic on a global scale has been encountered in the world lately. The uncertainty caused by the nature of the disease at the time of the emergence of Covid-19 also led to the fact that the methods of struggling with it were not fully known. Governments have started to implement strategies to combat the pandemic. However, it is debated whether the interventions of the countries are fast, serial, and effective enough. Although it is accepted that the Covid-19 crisis caused an unprecedented economic downsizing after the great depression of 1929, it is also known that countries responded seriously. In this study, the performance of countries in the pandemic was handled from an economic point of view, taking into account the Covid-19 parameters. Bootstrap Efficiency analyses conducted in 24 European countries during the period March 2020-March 2021 revealed that the countries did not exert full efficiency in terms of economic sensitivity which was used as output. The results indicated that countries should be more prepared for future risks related to the fight against the virus when assessed from an economic point of view

Enerji tüketimi ve finansal gelişme: Saklı eşbütünleşme ile MENA ülkelerinden kanıtlar

Enerji, ekonomilerin gelişmeleri hakkında ipucu veren önemli bir parametredir. Ülkelerdeki enerji tüketimi ekonomik yapıyı özetlemektedir. Günümüzde ekonomik büyümenin reel sektör belirleyicileri dışında dikkat çeken bileşeni finansal gelişme olarak kabul edilmektedir. Bu çalışmada enerji tüketimi ve finansal gelişme ilişkisi MENA ülkeleri için incelenmiştir. 1980-2017 dönemini ele alan araştırmada ekonometrik analizler Hatemi J (2011) Panel Saklı Eşbütünleşme Testi ve Panel VECM analizi ile gerçekleştirilmiştir. Test sonuçları değişkenlerin orijinal değerleri arasında eşbütünleşme olmadığını, fakat pozitif ve negatif bileşenlerinin bazıları arasında uzun dönemli bir ilişkinin olduğunu göstermiştir. Dolayısıyla seriler arasında saklı eşbütünleşme olduğu tespit edilmiştir. Bu bulgular ışığında değişkenlerinin bileşenleri arasında eşbütünleşme ve özellikle de uzun dönem nedensellik ilişkisi olması finansal gelişme göstergelerindeki değişikliğin enerji tüketimi üzerinde etkili olduğunu ortaya koymaktadır.Energy is an important parameter that gives clues about the developments in economies. Energy consumption (EC) in countries gives a summary of the economic structures of those countries. Today, the attention-grabbing component of economic growth, apart from the real sector determinants, is considered to be financial development. In this study, the relationship between EC and financial development in MENA countries is examined. Econometric analyzes are carried out by Hatemi J (2011) Panel Hidden Cointegration Test and Panel VECM analysis in the study covering the period between 1980 and 2017. The test results have showed that there is no cointegration between the original values of the variables, but there is a long-term relationship between some of the positive and negative components. Therefore, it has been determined that there is a hidden cointegration between the series. In light of these findings, the cointegration and especially the long-term causality relationship between the components of the variables reveal that the change in financial development indicators is effective on energy consumption

A Tobit Model Application on the Determinants of R D Efficiency

DergiPark: 464212trakyasobedThe scarcity ofresources obliges them to adapt to innovation to achieve steady growth ofcountries. The source of innovation is research and development activities. Theaim of this study is to reveal the determinants of the effectiveness ofresearch and development. 1996-2014 period data of 16 OECD countries were usedin the study. Firstly, the efficiency values of research and development werecalculated by Data Envelopment Analysis Method and then Total FactorProductivity, which is considered to be the determinant of the effectiveness ofresearch and development, was obtained. Malmquist Index Method was used inTotal Factor Productivity calculations. In the final stage of the study, TobitModel in which the efficiency values of research and development are used asdependent variables was estimated. Total factor productivity calculated, energyconsumption and foreign direct investment data were used as independentvariable. According to Tobit model estimation results, it was determined thattotal factor productivity and energy consumption variables have a directed lineeffect on the efficiency of research and development, while foreign directinvestment has a back line effect on the efficiency of research anddevelopment.Kaynaklarınkıtlığı, ülkelerin istikrarlı büyümeyi yakalamalarında yeniliğe adapteolmalarını zorunlu kılmaktadır. Yeniliğin kaynağı ise araştırma geliştirmefaaliyetleridir.  Bu çalışmanın amacıaraştırma geliştirmenin etkinliğinin belirleyicilerini ortaya koymaktır.Araştırmada 16 OECD ülkesine ait 1996-2014 dönemi verileri kullanılmıştır. İlkolarak araştırma geliştirmenin etkinlik değerleri Veri Zarflama Analizi Yöntemiile hesaplanmıştır. Daha sonra araştırma geliştirmenin etkinliğininbelirleyicisi olduğu düşülen Toplam Faktör Verimliliği elde edilmiştir. ToplamFaktör Verimliliği hesaplamalarında Malmquist Endeks Yöntemine başvurulmuştur.Araştırmanın son aşamasında araştırma geliştirmenin etkinlik değerlerininbağımlı değişken olarak kullanıldığı Tobit Model tahmin edilmiştir. Bağımsızdeğişken olarak hesaplanan toplam faktör verimliliği, enerji tüketimi vedoğrudan yabancı yatırım verileri kullanılmıştır.  Tobit model tahmin sonuçlarına göre toplamfaktör verimliliği ve enerji tüketimi değişkenlerinin araştırma geliştirmeninetkinliği üzerinde doğru yönlü; buna karşılık doğrudan yabancı yatırımların iseters yönlü etkiye sahip olduğu tespit edilmiştir

Reflections of Geopolitical Risk on Foreign Direct Investments: The Case of Türkiye

A way to achieve sustainable economic growth in developing countries is to increase investments with domestic savings. However, not every country has an equal opportunity in terms of domestic savings. The desired level of investment expenditures cannot be reached in countries with a savings gap. In this case, foreign direct investment (FDI) becomes more valuable in meeting countries’ investment needs. Nevertheless, companies may not behave very bravely in their investment actions in other countries. There is a considerable risk and uncertainty avoidance in the nature of investment because uncertainty and risk are accepted as harbingers of instability for a country. Since the main goal of companies is to make a profit, they may start thinking that they will not have the opportunity to make a profit in an unstable economy. Hence, the risk perception in the investment environment must be low for developing countries to become attractive for FDI inflows. Geopolitical risks, as well as economic, political, and strategic risks that countries will be exposed to, are important indicators considered in FDI inflows. Literature research shows that investors are aggressive in investing with a profit appetite and, with exceptions, are sensitive to geopolitical risks. In other words, FDI decreases in countries where geopolitical risks tend to increase. The present study tested the validity of this assumption in the literature for Türkiye. The impact of geopolitical risks on FDI was analyzed with the ARDL Boundary Test Approach for the period 1985-2020. FDI inflows were used as the dependent variable, and the Geopolitical Risk (GPR) Index, a measure of geopolitical risk, was used as the independent variable. Moreover, growth, globalization, and inflation are the other independent variables analyzed. The test results demonstrated the negative effect of the increase in the GPR index on FDI inflows. In terms of the results obtained, the study provides an important perspective on the prioritization of the geopolitical risk factor in the evaluation of foreign investment performance

RELATIONSHIP BETWEEN PRODUCTIVITY AND DIGITALIZATION WITH TOBIT MODEL BASED ON MALMQUIST INDEX

Purpose: The sources of economic growth include capital, labor and the Solow surplus, dedicated to the study of Solow (1956). Solow surplus is the inexplicable part of growth with labor and capital and is expressed as technological advances. Solow surplus also means total factor productivity (TFP). In other words, economic growth is explained by TFP depending on technology from the past to the present. These days, digitalization is known to be the new technological revolution. In light of this concept, the study aims to demonstrate the impact of digitalization on TFP. Methodology: A TFP calculation based on the Malmquist index was made using labor, capital and gross domestic product data for 30 countries in the period 2012-2020. The Tobit Panel estimate was then used to determine the effect of digitalization on TFP in the relevant period. Findings: the results of the panel estimate are that digitalization has a significant and positive impact on TFP. The findings suggest that digitalization contributes to productivity. Originality: The most important feature that distinguishes research from studies in the literature is that a verification method is selected that uses real data. In addition, works covering many countries in literature is limited. The research has results from a multi-country perspective