LM-Type tests for a Unit Root Allowing for a Break in Trend

We consider LM-type tests for a unit root allowing for a break in trend at an unknown date. In addition to the minimum LM test statistic, we propose new LM-type tests based on the least squares estimator of the break date under the null. We examine asymptotic behavior under the null hypothesis with and without a break. For all the endogenous break tests considered, the limiting distribution when there is a break in slope is not the same as when there is no break. Other authors have obtained similar results in the context of DF-type tests. Since this discrepancy is smaller for the LM-type based on the least squares estimator, smaller size distortions are to be expected when using this test statistic. Simulation experiments confirm the superiority in terms of size, power and break date estimation of the proposed methodUnit Root, Structural Change, Lagrange Multiplier Test, Breaking Trend

Determinants of FDI in Latin America

In this paper we study the determinants of inflows of foreign capital in Latin American countries. We consider the usual factors included in other studies in the literature: market size, infrastructure development, and wages. To obtain a improved measure of market size we adjust GDP by a poverty factor. In addition, we consider indicators of openness of the economy, macroeconomic stability, human capital and the importance of natural resources. We also studied the effects of privatizations. The results obtained provide important guidelines on how a country can attract more foreign direct investment.

Intelligent Management and Efficient Operation of Big Data

This chapter details how Big Data can be used and implemented in networking and computing infrastructures. Specifically, it addresses three main aspects: the timely extraction of relevant knowledge from heterogeneous, and very often unstructured large data sources, the enhancement on the performance of processing and networking (cloud) infrastructures that are the most important foundational pillars of Big Data applications or services, and novel ways to efficiently manage network infrastructures with high-level composed policies for supporting the transmission of large amounts of data with distinct requisites (video vs. non-video). A case study involving an intelligent management solution to route data traffic with diverse requirements in a wide area Internet Exchange Point is presented, discussed in the context of Big Data, and evaluated.Comment: In book Handbook of Research on Trends and Future Directions in Big Data and Web Intelligence, IGI Global, 201