The regression analysis which is basic tool of econometrics was invented in 1880s by Francis Galton, a cousin of Charles Darwin who is famous for his theory of evolution. Like Darwin, Galton was a biologist interested in the laws of heredity, and he intended to use the regression for the laws of heredity. He used …
A traditional approach of analyzing the residuals in regression models can be identified over the Classical Assumptions in Linear Models (Rodríguez Revilla, 2014), which primarily involves the residuals in aspects as homoscedasticity, no serial correlation (or auto-correlation), no endogeneity, correct specification (this one includes no omitted variables, no redundant variables, and correct functional form) and …
Discussing the Importance of Stationary Residuals in Time Series Read More »
The MENA region is ranked first in terms of remittance receipts (3.83% of GDP) worldwide, it has also the highest non-oil trade deficit among other developing regions (World Bank, 2018). This study uses panel data from 11 Labor-abundant MENA countries (main destination of remittance receipts) to examine the trade balance effect of remittances. We postulate …
After the dramatic turmoils that took place in France and then have spread across other European countries. These turmoils were mainly triggered by the hikes in Oil prices in the last few months, These surges have caused rigorous supply shock to prices, causing thousands maybe million of Mid-class people in EU to struggle. Lives casts …
An excerpt from Manikw’s blog When I was CEA chair, I sent the following guidelines to my staff as they started drafting the Economic Report of the President. A friend recently emailed me a copy, and I thought I would share them with blog readers. They are good rules of thumb, especially for economists writing …
Understanding the economic intuition behind minimum wageslaw is of great importance, given the economic fluxes spreading all over theworld, from the Arab spring in Middle East, to budget deficits in USA and the debt crises in euro zone. Regarding the debatable and controversial outcomes of minimum wages, I will try to explain why governments tend …
There is an increasing concern among policy makers and economists about macro prudential policies that aim to stabilize the economy and alleviate financial distortions through affecting output and inflation levels . This paper by Claessens, and Valencia, (2013) at VOX tries to study the possible interactions between monetary and macro prudential policies. In addition, it …
The interaction between monetary and macroprudential policies Read More »
With the expected increase in world population by one billion people in just over a decade, governments in less developed countries are faced with the challenge of having to accommodate the majority of this future population growth. This is of concern since many of these countries currently face various social, economic and infrastructural challenges that …
Urban slums and their implications for national fertility rate Read More »
