A new quadratic asymmetric error correction model: does size matter?

<p dir="ltr">We introduce a new quadratic asymmetric error correction model that comprehensively accounts for both sign and size asymmetries. We also propose a test protocol that allows to rigorously identify different sources of long-run nonlinearity, namely quadratic nonlinearity,...

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محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Ayman Mnasri (16932486) (author)
مؤلفون آخرون: Zouhair Mrabet (17863070) (author), Mouyad Alsamara (17823668) (author)
منشور في: 2022
الموضوعات:
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author Ayman Mnasri (16932486)
author2 Zouhair Mrabet (17863070)
Mouyad Alsamara (17823668)
author2_role author
author
author_facet Ayman Mnasri (16932486)
Zouhair Mrabet (17863070)
Mouyad Alsamara (17823668)
author_role author
dc.creator.none.fl_str_mv Ayman Mnasri (16932486)
Zouhair Mrabet (17863070)
Mouyad Alsamara (17823668)
dc.date.none.fl_str_mv 2022-11-11T09:00:00Z
dc.identifier.none.fl_str_mv 10.1007/s00181-022-02323-4
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/A_new_quadratic_asymmetric_error_correction_model_does_size_matter_/29413340
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Economics
Applied economics
Econometrics
Mathematical sciences
Statistics
Error correction model
Quadratic nonlinearity
Asymmetry
Bootstrap
Okun’s law
Monte Carlo simulations
Forecast
dc.title.none.fl_str_mv A new quadratic asymmetric error correction model: does size matter?
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p dir="ltr">We introduce a new quadratic asymmetric error correction model that comprehensively accounts for both sign and size asymmetries. We also propose a test protocol that allows to rigorously identify different sources of long-run nonlinearity, namely quadratic nonlinearity, size asymmetry and sign asymmetry. We use a nonparametric residual recursive bootstrap technique to report p-values for the long-run tests. Simulation results confirm the consistency of our proposed estimator in finite samples and show that the bootstrapped tests have reasonably good size and power properties. Although our estimation of the Okun’s Law for the USA confirms previous findings on the direction of the sign asymmetry, its reveals that the magnitude of the impact of economic downturns on unemployment decreases faster than the impact of upturns. Forecasting results show that our new model performs better than NARDL.</p><h2>Other Information</h2><p dir="ltr">Published in: Empirical Economics<br>License: <a href="https://creativecommons.org/licenses/by/4.0" target="_blank">https://creativecommons.org/licenses/by/4.0</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1007/s00181-022-02323-4" target="_blank">https://dx.doi.org/10.1007/s00181-022-02323-4</a></p>
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identifier_str_mv 10.1007/s00181-022-02323-4
network_acronym_str Manara2
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oai_identifier_str oai:figshare.com:article/29413340
publishDate 2022
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spelling A new quadratic asymmetric error correction model: does size matter?Ayman Mnasri (16932486)Zouhair Mrabet (17863070)Mouyad Alsamara (17823668)EconomicsApplied economicsEconometricsMathematical sciencesStatisticsError correction modelQuadratic nonlinearityAsymmetryBootstrapOkun’s lawMonte Carlo simulationsForecast<p dir="ltr">We introduce a new quadratic asymmetric error correction model that comprehensively accounts for both sign and size asymmetries. We also propose a test protocol that allows to rigorously identify different sources of long-run nonlinearity, namely quadratic nonlinearity, size asymmetry and sign asymmetry. We use a nonparametric residual recursive bootstrap technique to report p-values for the long-run tests. Simulation results confirm the consistency of our proposed estimator in finite samples and show that the bootstrapped tests have reasonably good size and power properties. Although our estimation of the Okun’s Law for the USA confirms previous findings on the direction of the sign asymmetry, its reveals that the magnitude of the impact of economic downturns on unemployment decreases faster than the impact of upturns. Forecasting results show that our new model performs better than NARDL.</p><h2>Other Information</h2><p dir="ltr">Published in: Empirical Economics<br>License: <a href="https://creativecommons.org/licenses/by/4.0" target="_blank">https://creativecommons.org/licenses/by/4.0</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1007/s00181-022-02323-4" target="_blank">https://dx.doi.org/10.1007/s00181-022-02323-4</a></p>2022-11-11T09:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1007/s00181-022-02323-4https://figshare.com/articles/journal_contribution/A_new_quadratic_asymmetric_error_correction_model_does_size_matter_/29413340CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/294133402022-11-11T09:00:00Z
spellingShingle A new quadratic asymmetric error correction model: does size matter?
Ayman Mnasri (16932486)
Economics
Applied economics
Econometrics
Mathematical sciences
Statistics
Error correction model
Quadratic nonlinearity
Asymmetry
Bootstrap
Okun’s law
Monte Carlo simulations
Forecast
status_str publishedVersion
title A new quadratic asymmetric error correction model: does size matter?
title_full A new quadratic asymmetric error correction model: does size matter?
title_fullStr A new quadratic asymmetric error correction model: does size matter?
title_full_unstemmed A new quadratic asymmetric error correction model: does size matter?
title_short A new quadratic asymmetric error correction model: does size matter?
title_sort A new quadratic asymmetric error correction model: does size matter?
topic Economics
Applied economics
Econometrics
Mathematical sciences
Statistics
Error correction model
Quadratic nonlinearity
Asymmetry
Bootstrap
Okun’s law
Monte Carlo simulations
Forecast