Real Financial Integration among the East Asian Economies: A SURADF Panel Approach

To testify RIP, this study scrutinizes the mean-reversion behavior of bilateral real interest differentials (RIDs) in eight East Asian economies. We incorporate the ASEAN-5, South Korea and China (mainland) with the US and Japan taken as base countries. Four sub-samples within 1976-2004 are being considered to accentuate the effects of institutional changes and financial crises. To rectify the deficiency in extant univariate and panel tests, the newly proposed SURADF statistics by Breuer et al. (2002) is utilized. Overall, the findings are in favor of RIP such that RIDs are found mean-reverting (except China) and with faster adjustment, especially during the post-crisis era. Such outcome is in accord with the enhanced financial integration among the ASEAN-5 and South Korea with their major trading partners, suggesting that further economic cooperation and currency arrangements in the region are bright to preserve potential financial shocks. Conversely, the real financial integration among China-US and China-Japan are not yet empirically recognized notwithstanding the recent surge of capital flows into the mainland.Real Interest Differentials; SURADF Panel Unit Root Test; Half-life; Confidence Intervals; Financial Integration

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Investingating the Link Between Adderall Abuse, Mood, and Diet in College Students

Unprescribed Adderall use on college campuses as a means of increasing cognitive ability has become an increasingly prevalent problem today. This research explores the question of how Adderall abuse may be influenced by a poor diet or mood. An anonymous online survey was administered through word of mouth and social media platforms, such as GroupMe. The survey included basic demographic questions such as age and gender, as well as questions on dietary patterns, lifestyle choices, mood, frequency of ADHD medication use, and symptoms experienced. The data was analyzed using Pearson’s Correlation Coefficient, SPSS Version 25.0. In terms of diet, it was found that those who have taken Adderall were significantly more likely to have consumed frozen meals throughout the week, an indication of a low-quality diet. It was also found that those who reported being restless and fidgety during the past month were significantly more likely to have taken Adderall (p\u3c.05). Those who reported being restless and fidgety were also significantly more likely to have consumed components of the Western diet, such as fast foods, pre-made foods, and sweets (p\u3c.01) during the past week. Adderall abuse across college communities has been an increasing problem that has not been thoroughly acknowledged, so these results shed some light on the topic. Educating people about how their lifestyles may play a role in Adderall abuse is a step in the right direction to combat this problem.https://orb.binghamton.edu/research_days_posters_2022/1023/thumbnail.jp

Wet-gas compression in twin-screw multiphase pumps

Multiphase pumping with twin-screw pumps is a relatively new technology that has been proven successful in a variety of field applications. By using these pumps to add energy to the combined gas and liquid wellstream with minimal separation, operators have been able to reduce capital costs while increasing overall production. In many cases, such as subsea operations, multiphase pumping is the only viable option to make remote wells economic. Despite their many advantages, some problems have been encountered when operating under conditions with high gas volume fractions (GVF). Twin-screw multiphase pumps experience a severe decrease in efficiency when operating under wet-gas conditions, GVF over 95%. Field operations have revealed severe vibration and thermal issues which can lead to damage of the pump internals, requiring expensive maintenance. The research presented in this thesis seeks to investigate two novel methods of improving the performance of twin-screw pumps under wet-gas conditions. The first involves increasing the viscosity of the liquid stream. We propose that by increasing the viscosity of the liquid phase, the pump throughput can be increased. Tests were conducted at high GVF using guar gel to increase the viscosity of the liquid phase. Along with results from a multiphase pump model the pump behavior under wet-gas conditions with increased liquid viscosity was evaluated. The experimental results indicate that at high GVF, viscosity is not a dominant parameter for determining pump performance. Possible reasons for this behavior were proposed. These results were not predicted by current pump models. Therefore, several suggestions for improving the model’s predictive performance were suggested. The second method is the direct injection of liquid into the pump casing. By selectively injecting liquid into specific pump chambers, it is believed that many of the vibration issues can be eliminated with the added benefit of additional pressure boosting capacity. Since this method requires extensive mechanical modifications to an existing pump, it was studied only analytically. Calculations were carried out that show that through-casing liquid injection is feasible. More favorable pressure profiles and increased boosting ability were demonstrated

Business cycles and the synchronization process: a bounds testing approach

To justify the business cycle synchronization (BCS) process among ASEAN-5 (Indonesia, Malaysia, Philippines, Singapore and Thailand), Japan and the United States, the Autoregressive Distributed Log bounds test and the UECM (Unrestricted Error Correction Model) representation advanced in Pesaran et al. (2001) is deployed. Evidently, ASEAN-5 has achieved some important degree of business cycle co-fluctuations, attributed to the improved intra-trading and cross-boarder investments. Nonetheless, the idiosyncratic and common shocks in ASEAN economies are more identical to the Japanese experience rather than the US’s. Comparable pattern of economic development and liberalization process have created countries (ASEAN-Japan) with similar economic structures, implying that further economic cooperation and currency arrangements in the region are bright. In addition, our findings demonstrate that the bilateral exchange rate stability may not contribute to the business cycle convergence, as in the ASEAN-US case while bilateral exchange rate dispersion has neither jeopardized the ASEAN-Japan BCS process. Also, price divergences among the ASEAN-US-Japan indicate that scope remained for further price convergence if the Japanese Yen or the US dollar is to be adopted as common currency. Nonetheless, regional policy coordination should focus on narrowing the yen/dollar fluctuation, ahead of forming common currency area or monetary union

Transmission Mechanism Of Twin Deficits Hypothesis: Evidence From Two Neighbouring Countries

In spite of the apparent importance of the effect of budget deficit on macroeconomic variables, not much empirical work has been carried on the ASEAN economies. Hence, the primary objective of this study is to establish the causal relationship between the twin deficit. An insight on the particular story of twin deficits nexus in Malaysia and Thailand is presented in this paper. The role of exchange rate and interest rate which acts as a source transmission mechanism are proven to be important in the innovation of twin deficits debate and a version of a ‘vicious circle’ is detected in Malaysia. First, we found causality run from budget deficit to current account deficit (Keynesian paradigm) for Thailand and bi-directional causality for Malaysia. Second, on the whole, budget deficit is the driving force for interest rate, exchange rate and current account where the transmission mechanism channel operates through exchange rate and interest rate between the two deficits, supporting a version of Abell’s causal chain (or Keynesian view). Third the exchange rate was found to “Granger” cause current account deficit and not vice versa

Business cycles and the synchronization process: a bounds testing approach

To justify the business cycle synchronization (BCS) process among ASEAN-5 (Indonesia, Malaysia, Philippines, Singapore and Thailand), Japan and the United States, the Autoregressive Distributed Log bounds test and the UECM (Unrestricted Error Correction Model) representation advanced in Pesaran et al. (2001) is deployed. Evidently, ASEAN-5 has achieved some important degree of business cycle co-fluctuations, attributed to the improved intra-trading and cross-boarder investments. Nonetheless, the idiosyncratic and common shocks in ASEAN economies are more identical to the Japanese experience rather than the US’s. Comparable pattern of economic development and liberalization process have created countries (ASEAN-Japan) with similar economic structures, implying that further economic cooperation and currency arrangements in the region are bright. In addition, our findings demonstrate that the bilateral exchange rate stability may not contribute to the business cycle convergence, as in the ASEAN-US case while bilateral exchange rate dispersion has neither jeopardized the ASEAN-Japan BCS process. Also, price divergences among the ASEAN-US-Japan indicate that scope remained for further price convergence if the Japanese Yen or the US dollar is to be adopted as common currency. Nonetheless, regional policy coordination should focus on narrowing the yen/dollar fluctuation, ahead of forming common currency area or monetary union

Business cycles and the synchronization process: a bounds testing approach

To justify the business cycle synchronization (BCS) process among ASEAN-5 (Indonesia, Malaysia, Philippines, Singapore and Thailand), Japan and the United States, the Autoregressive Distributed Log bounds test and the UECM (Unrestricted Error Correction Model) representation advanced in Pesaran et al. (2001) is deployed. Evidently, ASEAN-5 has achieved some important degree of business cycle co-fluctuations, attributed to the improved intra-trading and cross-boarder investments. Nonetheless, the idiosyncratic and common shocks in ASEAN economies are more identical to the Japanese experience rather than the US’s. Comparable pattern of economic development and liberalization process have created countries (ASEAN-Japan) with similar economic structures, implying that further economic cooperation and currency arrangements in the region are bright. In addition, our findings demonstrate that the bilateral exchange rate stability may not contribute to the business cycle convergence, as in the ASEAN-US case while bilateral exchange rate dispersion has neither jeopardized the ASEAN-Japan BCS process. Also, price divergences among the ASEAN-US-Japan indicate that scope remained for further price convergence if the Japanese Yen or the US dollar is to be adopted as common currency. Nonetheless, regional policy coordination should focus on narrowing the yen/dollar fluctuation, ahead of forming common currency area or monetary union

Real Financial Integration among the East Asian Economies: A SURADF Panel Approach

To testify RIP, this study scrutinizes the mean-reversion behavior of bilateral real interest differentials (RIDs) in eight East Asian economies. We incorporate the ASEAN-5, South Korea and China (mainland) with the US and Japan taken as base countries. Four sub-samples within 1976-2004 are being considered to accentuate the effects of institutional changes and financial crises. To rectify the deficiency in extant univariate and panel tests, the newly proposed SURADF statistics by Breuer et al. (2002) is utilized. Overall, the findings are in favor of RIP such that RIDs are found mean-reverting (except China) and with faster adjustment, especially during the post-crisis era. Such outcome is in accord with the enhanced financial integration among the ASEAN-5 and South Korea with their major trading partners, suggesting that further economic cooperation and currency arrangements in the region are bright to preserve potential financial shocks. Conversely, the real financial integration among China-US and China-Japan are not yet empirically recognized notwithstanding the recent surge of capital flows into the mainland