This paper uses the panel data of energy consumption and GDP for 82 countries from 1972 to 2002. Based on the income levels defined by the World Bank, the data are divided into four categories: low income group, lower middle income group, upper middle income group, and high income group. We...

This paper replicates two spatial monopoly models by Takayama and Judge. The first one is a simple spatial monopoly model. The second model allows the activity of arbitrage between any pains of consumption regions if the price differential exceeds the corresponding unit transportation cost. With...

The combinatorial nature of integer programming is inevitable even after takingspecific model structure into consideration. This is the root problem in implementing large-scale nonlinear integer programming models regardless of which algorithm one chooses to use. Consequently, we suggest that...

This paper estimates the demand for cigarettes using panel data – 42 states and Washington, D.C. – from 1961 to 2002. We first employ the panel unit root test before estimating the demand structure. We have found that (i) the price and income elasticities are approximately –0.41 and 0.06,...

This paper applies recently developed unit root and cointegration models to determine the appropriate Granger causality relations between stock prices and exchange rates using recent Asian flu data. Coupled with impulse response functions, it is found that data from Japan and Thailand are in...

During the process of economic development, different economic policies are adopted in accordance with particular circumstances. Therefore, conventional methods of time-series analysis may give misleading results if the problems associated with regime switches are not considered. The...

Forecasting is an underestimated field of research in supply chain management. Recently advanced methods are coming into use. Initial results are encouraging, but often require changes in policies for collaboration and transparency. In this paper we explore advanced forecasting tools for...

The long memory characteristic of financial market volatility is well documentedand has important implications for volatility forecasting and optionpricing. When fitted to the same data, different volatility models calculate theunconditional variance differently and could have very different...

This paper shows that the properties of nonlinear transformations of a fractionally integrated process depend strongly on whether the initial series is stationary or not. Transforming a stationary Gaussian I(d) process with d 0 leads to a long-memory process with the same or a smaller...

Brazil has long ago removed most of the perverse government incentives that stimulated massive deforestation in the Amazon in the 70s and 80s, but one highly controversial policy remains: Road building. While data is now abundantly available due to the constant satellite surveillance of the...