Wage-Price Dynamics and Deflation in Hong Kong

This paper provides empirical evidence on the dynamics of prices and wages in Hong Kong. The results imply that the deflation in Hong Kong since 1997 can be understood using a conventional macroeconomic framework wherein foreign influences constitute the basic underlying shocks, and adjustment processes in domestic wages and prices determine the details of the transmission mechanism. Our results indicate that the decline in local nominal prices owes much to declining prices of imported intermediate goods. The negative output gap and the increase in unemployment experienced during the deflation period also have their origin in foreign shocks, but the domestic wage adjustment process constitutes an important contributing factor.Deflation, wage-price dynamics, Hong Kong data.

Is There a Euro Effect on Trade? An Application of End-of-Sample Structural Break Tests for Panel Data

Whether trade has increased due to the Euro is a question at the heart of lively policy debates and academic research. We revisit the question with a new, more powerful econometric test for end-of-sample breaks to formally identify the timing and duration of the structural break implied by the ÒRose effectÓ on the Euro AreaÕs trade. We find a significant break in 1999Q1 when using a traditional gravity equa- tion, corroborating the general consensus in the literature. However, we find that this break is short lived. Furthermore, we show that the break can be explained both by the marked decrease in real interest rates across the Euro Area and by deepening European institutional integration.Gravity equation, International Trade, Common Currency, Structural break tests in panel data, Euro Area

Modelling Environmental Risk

As environmental issues have become increasingly important in economic research and policy for sustainable development, firms in the private sector have introduced environmental and social issues in conducting their business activities. Such behaviour is tracked by the Dow Jones Sustainable Indexes (DJSI) through financial market indexes that are derived from the Dow Jones Global Indexes. The sustainability activities of firms are assessed using criteria in three areas, namely economic, environmental and social. Risk (or uncertainty) is analysed empirically through the use of conditional volatility models of investment in sustainability-driven firms that are selected through the DJSI. The empirical analysis is based on financial econometric models to determine the underlying conditional volatility, with the estimates showing that there is strong evidence of volatility clustering, short and long run persistence of shocks to the index returns, and asymmetric leverage between positive and negative shocks to returns.Environmental sustainability index, environmental risk, conditional volatility, Dow Jones Sustainability Indexes, GARCH, GJR, persistence, shocks, asymmetry, moment condition, log-moment condition.

Stability Tests for Heterogeneous Panel Data

This paper proposes a new test for structural instability in heterogeneous panels. The test builds on the seminal work of Andrews (2003) originally developed for time series. It is robust to non-normal, heteroskedastic and serially correlated errors, and allows for the number of post break observations to be small. Importantly, the test considers the alternative of a break affecting only some - and not all - individuals of the panel. Under mild assumptions the test statistic is shown to be asymptotically normal, thanks to the additional cross sectional dimension of panel data. This greatly facilitates the calculation of critical values. Monte Carlo experiments show that the test has good size and power under a wide range of circumstances. The test is then applied to investigate the effect of the Euro on trade.Structural change, end-of-sample instability tests, heterogeneous panels, Monte Carlo, Euro effect on trade.

Stability tests for heterogeneous panel data

This paper proposes a new test for structural instability in heterogeneous panels. The test builds on the seminal work of Andrews (2003) originally developed for time series. It is robust to non-normal, heteroskedastic and serially correlated errors, and allows for the number of post break observations to be small. Importantly, the test considers the alternative of a break affecting only some - and not all - individuals of the panel. Under mild assumptions the test statistic is shown to be asymptotically normal, thanks to the additional cross sectional dimension of panel data. This greatly facilitates the calculation of critical values. Monte Carlo experiments show that the test has good size and power under a wide range of circumstances. The test is then applied to investigate the effect of the Euro on trade.structural change ; end-of-sample instability tests ; heterogeneous panels ; Monte Carlo ; Euro effect on trade

Pairing-excitation versus intruder states in 68Ni and 90Zr

A discussion on the nature of the 0+ states in 68Ni (Z=28, N=40) is presented and a comparison is made with its valence counterpart 90Zr (Z=40, N=50). Evidence is given for a 0+ proton intruder state at only ~2.2 MeV excitation energy in 68Ni, while the analogous neutron intruder states in 90Zr reside at 4126 keV and 5441 keV. The application of a shell-model description of 0+ intruder states reveals that many pair-scattered neutrons across N=40 have to be involved to explain the low excitation energy of the proton-intruder configuration in 68Ni.Comment: 10 pages, 2 figures, 1 tabl

“Give me happy pop songs in C major and with a fast tempo”: A vocal assistant for content-based queries to online music repositories

This paper presents an Internet of Musical Things system devised to support recreational music-making, improvisation, composition, and music learning via vocal queries to an online music repository. The system involves a commercial voice-based interface and the Jamendo cloud-based repository of Creative Commons music content. Thanks to the system the user can query the Jamendo music repository by six content-based features and each combination thereof: mood, genre, tempo, chords, key and tuning. Such queries differ from the conventional methods for music retrieval, which are based on the piece's title and the artist's name. These features were identified following a survey with 112 musicians, which preliminary validated the concept underlying the proposed system. A user study with 20 musicians showed that the system was deemed usable, able to provide a satisfactory user experience, and useful in a variety of musical activities. Differences in the participants’ needs were identified, which highlighted the need for personalization mechanisms based on the expertise level of the user. Importantly, the system was seen as a concrete solution to physical encumbrances that arise from the concurrent use of the instrument and devices providing interactive media resources. Finally, the system offers benefits to visually-impaired musicians