Raoul Beunen, Kristof Van Assche, & Martijn Duineveld, Evolutionary Governance Theory: Theory and Applications

Book Revie

Is the response of output to monetary policy asymmetric? evidence from a regime-switching coefficients model

This paper investigates regime switching in the response of U.S. output to a monetary policy action. We find substantial, statistically significant, time variation in this response, and that this time variation corresponds to "high response" and "low response" regimes. We then investigate whether the timing of the regime shifts are consistent with three particular manifestations of asymmetry by modeling the transition probabilities governing the switching process as a function of state variables. We find strong evidence that the regime shifts can be explained by whether the economy is in a recession at the time the policy action was taken. In particular, policy actions taken during recessions seem to have larger effects than those taken during expansions. We find much less evidence of any asymmetry related to the direction or size of the policy action. (Formerly titled: "When Does Monetary Policy Matter? Evidence from an Unobserved Components Model with regime Switching")Monetary policy ; Business cycles

Nonlinearities in the Real Exchange Rates: New Evidence from Developed and Developing Countries

This paper investigates nonlinearities in the dynamics of real exchange rates. We use Monte Carlo simulations to establish the size properties of the Teräsvirta-Anderson (1992) and the Teräsvirta (1994) test, when the dynamics of the real exchange rate is influenced by an exogenous process. In addition, we examine the modification proposed by Ahmad, Lo and Mykhaylova (2013; Journal of International Economics) to show that the modified nonlinearity test performs much better than the original in both Monte Carlo exercises and in the actual data on 1431 bilateral real exchange rate series. Finally, we investigate the dynamics of the real exchange rate for both developed and developing countries using the modified test for the recent floating period. In general, the results finds a greater incidence of nonlinear dynamics for developing country real exchange rates

Does income influence rational decisions?

This study explores the impact of income on customer loyalty so as to verify whether consumer decision-making is bounded by rationality or not. The empirical findings show that income positively affects customer loyalty in choosing leisure parks. Specifically, high-income customers prefer to reduce the time cost of information collection. Therefore, they are more inclined to choose a specific resort or a leisure activity park of a particular brand rather than spend their time searching and planning for the most appropriate location of a leisure activity park. This result supports the notion that customers’ consumption decisions are bounded by rationality, not for the purpose of making the optimal decision, but in order to pursue satisfying their own needs instead

Strategies for Transformational Change in the Health Care System: Challenges Facing an Aging Population

Abstract Reforming the health care system is a challenge for every country in the world in the 21st century. What is beneficial for an individual condition may not be good for patients with multiple conditions. Based on the actual medical records of a population age 55 and older as outpatients and inpatients, this study used a person-based longitudinal analysis to investigate the trends in healthcare seeking and the consumption of medical care resources. Amonga cohort comprised of 300,000 patients randomly chosen from the National Health Insurance Research Database of Taiwan, 48,836 persons aged 55 and older were then followed longitudinally 10 years. The results clearly demonstrated that there were gender and age differences, as men had a lower frequency of consultation but a greater frequency of admissions and consumption of medical care resources than women. Age 75 was a key point in healthcare utilization. Since population aging is inevitable and continues to increase rapidly, it is important to establish a new health care system, raise awareness of health risks, strengthen preventive health services, especially for men, and plan health manpower resources to train enough professionals in the care of the elderly