With over 209 million populations, human capital is an indispensable asset for Pakistan. Besides increasing population, the country is experiencing a youth bulge, with the number of individuals entering the labor market over the upcoming years expanding at a faster rate than the total population. Hence creating enough jobs for a growing population, improve the […]
Human Resource Development in Pakistan—an obsessive quest? Read More »
Pandemic covid-19 was a global disaster and every nation was affected with different levels of intensity. Many huge industries such as the aviation and tourism industry faced huge losses. In such circumstances, it was not possible to provide a huge covid support package using the tax revenue. Despite this, many governments including those running deficit
Central Bank Borrowing and Inflation: between Myth and Reality Read More »
The mainstream monetary economics is filled with contradictions, logical inconsistencies, missed and messed normative implications and data inconsistencies. There exist heterodox theories having better match with historical data, but the theories are often undermined and ignored. It is in fact difficult to find something logical and valid in classical monetary economics. Despite a clear empirical
Mainstream Monetary Economics: A Package of Logical Fallacies Read More »
Whether if we’re working with Time Series Data or Panel Data, most of the times we want to follow the analysis of the long-run behavior and the short-run dynamics. An interesting but well-known model that enable us for such approach is the Auto-Regressive Distributed Lag model which stands as ARDL. There are a lot of
Estimating long-run coefficients from an ARDL model Read More »
In my the previous blogs, [1] [2] I have explained that following the General Specific Methodology, one can choose between theoretical models to find out a model which is compatible with data. Here is an example which shows step by step procedure of the general to simple methodology. At the end of this blog, you
General to Specific Modeling; a Step by Step Guide Read More »
Listening to the word ARDL, the first things that comes into mind is the bound testing approach introduced by Pesaran and Shin (1999).The Pesaran and Shin’s approach is an incredible use of the ARDL, however, the term ARDL is much elder, and the ARDL model has many other uses as well. In fact, the equation
ARDL model and General to simple methodology Read More »
Consider a hypothetical question, a researcher was given with a research question; compare the mathematical ability of male and female students of grade 5. The researcher collected data of 300 female students and 300 male students of grade 5 and administered a test of mathematical questions. The average score for female students was 80% and
Research in presence of multiple theories Read More »
In this article, we will follow Woolridge (2002) procedure to estimate a set of equations with nonlinear functional forms for panel data using the two-stage least squares estimator. It has to be mentioned that this topic is quite uncommon and not used a lot in applied econometrics, this is due that instrumenting the nonlinear terms
