Chih-Chuan Yeh - Profile on Academia.edu (original) (raw)
Papers by Chih-Chuan Yeh
Social Science Research Network, 2012
Panel data tests of energy service company (ESCO) activities effect on energy use. c System GMM e... more Panel data tests of energy service company (ESCO) activities effect on energy use. c System GMM estimation of ESCOs effect on energy use. c The ESCO reduction effect increases over time. c The long-run reduction provides energy savings of around 20 percent.
Scottish Journal of Political Economy, 2010
This paper investigates whether the impacts of financial development on growth convergence vary w... more This paper investigates whether the impacts of financial development on growth convergence vary with the stage of real development. We implement this analysis through the instrumental variable threshold regression approach proposed by Caner and Hansen. Our empirical evidence shows that financial intermediary development leads to long-run convergence in growth of both economic activity and productivity. Moreover, such convergence-enhancing effects of financial intermediation are stronger for less-developed countries than for the more industrialized. In addition, the data reveal that stock market development assists growth convergence only in low-income countries.
Convergence in price levels across US cities
Economics Letters, 2012
Abstract This paper empirically tests for convergence in consumer price indices across 17 major c... more Abstract This paper empirically tests for convergence in consumer price indices across 17 major cities in US over the 19182008 period. By using the novel OLS estimator introduced by Bao and Dhongde (2009), we find overwhelming evidences in support of price level ...
Economic Modelling, 2010
This paper re-investigates whether there exist inflation thresholds in the finance-growth linkage... more This paper re-investigates whether there exist inflation thresholds in the finance-growth linkage. By applying the Caner and Hansen's (2004) instrumental-variable threshold regression approach to the dataset of Levine et al. (2000), we find strong evidence of a nonlinear inflation threshold in the relationship, below which financial development exerts a significantly positive effect on economic growth, while, above which, the growth effect of finance appears to be insignificant. Furthermore, we also find a positive and significant relationship between finance and productivity for inflation rates below the threshold level, but no such relationship is detected for inflation rates above the critical level. This result suggests that finance influences growth mainly through the productivity channel.
Economics Letters, 2009
This paper jointly estimates the effect of inequality on growth and the impact of growth on inequ... more This paper jointly estimates the effect of inequality on growth and the impact of growth on inequality vis a simultaneous equations model. Results show that higher inequality is detrimental to growth whereas faster growth worsens the extent of income distribution.
Studies in Nonlinear Dynamics & Econometrics, 2009
The existing literature shows that income inequality plays an important role in growth process, a... more The existing literature shows that income inequality plays an important role in growth process, and such a relationship is better characterized as nonlinearity. The paper revisits the issue by employing the threshold regressions with instrumental variables approach. Using the initial level of economic development as a threshold variable, we find strong evidence in support of a nonlinear income threshold in the relationship. In particular, the data show that an increase in inequality would hinder growth in low-income countries but accelerate growth in high-income ones. The results therefore suggest that redistributive policy that alleviates inequality can foster economic growth in low-income countries, while policymakers confront a tradeoff between inequality and growth in high-income countries. * We are grateful to Garbis Iradian for making data available and Bruce E. Hansen and Pierre Perron for sharing the GAUSS code used in this study. We also thank an anonymous referee and the editor for their insightful suggestions. All remaining errors are our own responsibility.
The effect of ECSOs on energy use
Working Papers, Aug 1, 2012
Learning to Contract in Repeated Inter-Organizational Exchanges: Antecedents and Consequences
Academy of Management Proceedings
Contract is regarded as knowledge repositories in governing inter-organizational exchanges, and t... more Contract is regarded as knowledge repositories in governing inter-organizational exchanges, and transaction partners can learn from prior interactions to have the contract to be specified in greate...
Using quantile regressions and cross-sectional data from 152 countries, we examine the relationsh... more Using quantile regressions and cross-sectional data from 152 countries, we examine the relationship between inflation and its variability. We consider two measures of inflation the mean and median and three different measures of inflation variability the standard deviation, coefficient of variation, and median deviation. Using the mean and standard deviation or the median and the median deviation, the results support both the hypothesis that higher inflation creates more inflation variability and that inflation variability raises inflation across quantiles. Moreover, higher quantiles in both cases lead to larger marginal effects of inflation (inflation variability) on inflation variability (inflation). Using the mean and the coefficient of variation, however, the findings largely support no correlation between inflation and its variability. Finally, we also consider whether thresholds for inflation rate or inflation variability exist before finding such positive correlations. We fin...
A simultaneous evolution for analysing the interactions between CO2 emissions and national income
International Journal of Social and Humanistic Computing
Level, structure, and volatility of financial development and inflation targeting
Journal of Empirical Finance
Inflation targeting and output-inflation tradeoffs
Journal of International Money and Finance
The relationship between CSR and performance: Evidence in China
Pacific-Basin Finance Journal
A quantile framework for analysing the links between inflation uncertainty and inflation dynamics across countries
In contrast to the conventional conditional mean approaches, this study uses quantile regression ... more In contrast to the conventional conditional mean approaches, this study uses quantile regression techniques to present some new statistical evidence on the links between inflation uncertainty and the level of inflation with cross-sectional data from 90 countries during the period 1961 to 2006. The results suggest that positive inflation shocks have stronger impact on inflation uncertainty which varies across the
The effects of inflation targeting on Okun’s law
Applied Economics Letters, 2016
SSRN Electronic Journal, 2000
This paper assesses the long-run effect of growth volatility on income inequality using a compreh... more This paper assesses the long-run effect of growth volatility on income inequality using a comprehensive panel of annual U.S. state-level data during the 1945 to 2004 period. Using the pooled mean group (PMG) estimator, we find overwhelming evidence supporting the hypothesis that larger growth volatility positively and significantly associates with higher income inequality. In addition, our key finding is robust to alternative lag structures, conditioning variables, inequality measures, volatility indicators, and time periods.
Inequality-growth nexus along the development process
Studies in Nonlinear Dynamics and Econometrics, 2000
The paper examines whether the effect of inequality on growth varies with the level of economic d... more The paper examines whether the effect of inequality on growth varies with the level of economic development. Using a comprehensive panel of annual data for the 48 contiguous US states over the period 1945–2004, we find overwhelming evidence in support of threshold effects in the relationship between inequality and growth. Our analysis shows that while the effect of inequality on growth is significantly negative at lower levels of development, this effect diminishes along the growth process and then turns significantly positive at higher levels of development. Quantitatively, the coefficient estimates imply that when real income per capita is below the threshold of $12,140 (2004 US dollar), a one standard deviation increase in the share of income held by the top 1% of the population
This paper carries out the methodology suggested by Den Haan (2000) to investigate the co-movemen... more This paper carries out the methodology suggested by Den Haan (2000) to investigate the co-movement of inflation and real stock returns using quarterly data from OECD countries. We confirm the existence of both short-run and long-run relationships between inflation and real stock returns, regardless of whether the underlying time series data are purely I(0), purely I(1), or mutually co-integrated. Moreover, we use the confidence interval approach introduced by Stock (1991) to further point out the ambiguity in unit root tests. However, our results support the existence of an inverse co-movement and long-run relationship between these two variables in 12 OECD countries. That is, an increase in inflation depresses real stock prices. This evidence is consistent with both the inflation illusion hypothesis and with the classical view that stock returns should be undervalued to reflect the imbalance in the tax treatment of inventory.
The effect of ESCOs on energy use
Energy Policy, 2012
ABSTRACT Energy saving can importantly help prevent greenhouse gas emissions and, thus, climate c... more ABSTRACT Energy saving can importantly help prevent greenhouse gas emissions and, thus, climate change. Energy service companies (ESCOs) provide a crucial instrument for delivering improved energy efficiency and potentially contributing to substantial energy savings in the public and private sectors. This paper investigates empirically the effect of ESCO activities on energy use. Based on a dynamic IPAT model, using a panel data of 94 countries over the period 1981 to 2007, we provide significant evidence that ESCOs reduce energy use. This finding proves robust to different dates of the first ESCO. The negative ESCO effect increases over time. The dynamic adjustment process produces small effects in the short run, but large effects in the long run. Moreover, the long-run ESCO effect differs across the stages of development. That is, for the high- and low-income countries, the short-run ESCO effect remains negative, but the long-run effects differ, remaining negative in high-income countries, but becoming positive in low-income countries. Finally, we discuss energy policy implications.
Empirical Economics, 2010
Using quantile regressions and cross-sectional data from 152 countries, we examine the relationsh... more Using quantile regressions and cross-sectional data from 152 countries, we examine the relationship between inflation and its variability. We consider two measures of inflation-the mean and median-and three different measures of inflation variability-the standard deviation, relative variation, and median deviation. All results from the mean and standard deviation, the mean and relative variation, or the median and the median deviation support both the hypothesis that higher inflation creates more inflation variability and that inflation variability raises inflation across quantiles. Moreover, higher quantiles in both cases lead to larger marginal effects of inflation (inflation variability) on inflation variability (inflation). We particularly consider whether thresholds for inflation rate or inflation variability exist before finding such positive correlations. We find evidence of thresholds for the effect of inflation (inflation variability) on inflation variability (inflation). That is, for low inflation (inflation variability) countries, inflation (inflation variability) does not affect inflation variability (inflation). Finally, a series of robustness checks, including a set of additional explanatory variables as well as controlling for potential endogeneity with instrumental variables, leaves our findings generally unchanged.
Social Science Research Network, 2012
Panel data tests of energy service company (ESCO) activities effect on energy use. c System GMM e... more Panel data tests of energy service company (ESCO) activities effect on energy use. c System GMM estimation of ESCOs effect on energy use. c The ESCO reduction effect increases over time. c The long-run reduction provides energy savings of around 20 percent.
Scottish Journal of Political Economy, 2010
This paper investigates whether the impacts of financial development on growth convergence vary w... more This paper investigates whether the impacts of financial development on growth convergence vary with the stage of real development. We implement this analysis through the instrumental variable threshold regression approach proposed by Caner and Hansen. Our empirical evidence shows that financial intermediary development leads to long-run convergence in growth of both economic activity and productivity. Moreover, such convergence-enhancing effects of financial intermediation are stronger for less-developed countries than for the more industrialized. In addition, the data reveal that stock market development assists growth convergence only in low-income countries.
Convergence in price levels across US cities
Economics Letters, 2012
Abstract This paper empirically tests for convergence in consumer price indices across 17 major c... more Abstract This paper empirically tests for convergence in consumer price indices across 17 major cities in US over the 19182008 period. By using the novel OLS estimator introduced by Bao and Dhongde (2009), we find overwhelming evidences in support of price level ...
Economic Modelling, 2010
This paper re-investigates whether there exist inflation thresholds in the finance-growth linkage... more This paper re-investigates whether there exist inflation thresholds in the finance-growth linkage. By applying the Caner and Hansen's (2004) instrumental-variable threshold regression approach to the dataset of Levine et al. (2000), we find strong evidence of a nonlinear inflation threshold in the relationship, below which financial development exerts a significantly positive effect on economic growth, while, above which, the growth effect of finance appears to be insignificant. Furthermore, we also find a positive and significant relationship between finance and productivity for inflation rates below the threshold level, but no such relationship is detected for inflation rates above the critical level. This result suggests that finance influences growth mainly through the productivity channel.
Economics Letters, 2009
This paper jointly estimates the effect of inequality on growth and the impact of growth on inequ... more This paper jointly estimates the effect of inequality on growth and the impact of growth on inequality vis a simultaneous equations model. Results show that higher inequality is detrimental to growth whereas faster growth worsens the extent of income distribution.
Studies in Nonlinear Dynamics & Econometrics, 2009
The existing literature shows that income inequality plays an important role in growth process, a... more The existing literature shows that income inequality plays an important role in growth process, and such a relationship is better characterized as nonlinearity. The paper revisits the issue by employing the threshold regressions with instrumental variables approach. Using the initial level of economic development as a threshold variable, we find strong evidence in support of a nonlinear income threshold in the relationship. In particular, the data show that an increase in inequality would hinder growth in low-income countries but accelerate growth in high-income ones. The results therefore suggest that redistributive policy that alleviates inequality can foster economic growth in low-income countries, while policymakers confront a tradeoff between inequality and growth in high-income countries. * We are grateful to Garbis Iradian for making data available and Bruce E. Hansen and Pierre Perron for sharing the GAUSS code used in this study. We also thank an anonymous referee and the editor for their insightful suggestions. All remaining errors are our own responsibility.
The effect of ECSOs on energy use
Working Papers, Aug 1, 2012
Learning to Contract in Repeated Inter-Organizational Exchanges: Antecedents and Consequences
Academy of Management Proceedings
Contract is regarded as knowledge repositories in governing inter-organizational exchanges, and t... more Contract is regarded as knowledge repositories in governing inter-organizational exchanges, and transaction partners can learn from prior interactions to have the contract to be specified in greate...
Using quantile regressions and cross-sectional data from 152 countries, we examine the relationsh... more Using quantile regressions and cross-sectional data from 152 countries, we examine the relationship between inflation and its variability. We consider two measures of inflation the mean and median and three different measures of inflation variability the standard deviation, coefficient of variation, and median deviation. Using the mean and standard deviation or the median and the median deviation, the results support both the hypothesis that higher inflation creates more inflation variability and that inflation variability raises inflation across quantiles. Moreover, higher quantiles in both cases lead to larger marginal effects of inflation (inflation variability) on inflation variability (inflation). Using the mean and the coefficient of variation, however, the findings largely support no correlation between inflation and its variability. Finally, we also consider whether thresholds for inflation rate or inflation variability exist before finding such positive correlations. We fin...
A simultaneous evolution for analysing the interactions between CO2 emissions and national income
International Journal of Social and Humanistic Computing
Level, structure, and volatility of financial development and inflation targeting
Journal of Empirical Finance
Inflation targeting and output-inflation tradeoffs
Journal of International Money and Finance
The relationship between CSR and performance: Evidence in China
Pacific-Basin Finance Journal
A quantile framework for analysing the links between inflation uncertainty and inflation dynamics across countries
In contrast to the conventional conditional mean approaches, this study uses quantile regression ... more In contrast to the conventional conditional mean approaches, this study uses quantile regression techniques to present some new statistical evidence on the links between inflation uncertainty and the level of inflation with cross-sectional data from 90 countries during the period 1961 to 2006. The results suggest that positive inflation shocks have stronger impact on inflation uncertainty which varies across the
The effects of inflation targeting on Okun’s law
Applied Economics Letters, 2016
SSRN Electronic Journal, 2000
This paper assesses the long-run effect of growth volatility on income inequality using a compreh... more This paper assesses the long-run effect of growth volatility on income inequality using a comprehensive panel of annual U.S. state-level data during the 1945 to 2004 period. Using the pooled mean group (PMG) estimator, we find overwhelming evidence supporting the hypothesis that larger growth volatility positively and significantly associates with higher income inequality. In addition, our key finding is robust to alternative lag structures, conditioning variables, inequality measures, volatility indicators, and time periods.
Inequality-growth nexus along the development process
Studies in Nonlinear Dynamics and Econometrics, 2000
The paper examines whether the effect of inequality on growth varies with the level of economic d... more The paper examines whether the effect of inequality on growth varies with the level of economic development. Using a comprehensive panel of annual data for the 48 contiguous US states over the period 1945–2004, we find overwhelming evidence in support of threshold effects in the relationship between inequality and growth. Our analysis shows that while the effect of inequality on growth is significantly negative at lower levels of development, this effect diminishes along the growth process and then turns significantly positive at higher levels of development. Quantitatively, the coefficient estimates imply that when real income per capita is below the threshold of $12,140 (2004 US dollar), a one standard deviation increase in the share of income held by the top 1% of the population
This paper carries out the methodology suggested by Den Haan (2000) to investigate the co-movemen... more This paper carries out the methodology suggested by Den Haan (2000) to investigate the co-movement of inflation and real stock returns using quarterly data from OECD countries. We confirm the existence of both short-run and long-run relationships between inflation and real stock returns, regardless of whether the underlying time series data are purely I(0), purely I(1), or mutually co-integrated. Moreover, we use the confidence interval approach introduced by Stock (1991) to further point out the ambiguity in unit root tests. However, our results support the existence of an inverse co-movement and long-run relationship between these two variables in 12 OECD countries. That is, an increase in inflation depresses real stock prices. This evidence is consistent with both the inflation illusion hypothesis and with the classical view that stock returns should be undervalued to reflect the imbalance in the tax treatment of inventory.
The effect of ESCOs on energy use
Energy Policy, 2012
ABSTRACT Energy saving can importantly help prevent greenhouse gas emissions and, thus, climate c... more ABSTRACT Energy saving can importantly help prevent greenhouse gas emissions and, thus, climate change. Energy service companies (ESCOs) provide a crucial instrument for delivering improved energy efficiency and potentially contributing to substantial energy savings in the public and private sectors. This paper investigates empirically the effect of ESCO activities on energy use. Based on a dynamic IPAT model, using a panel data of 94 countries over the period 1981 to 2007, we provide significant evidence that ESCOs reduce energy use. This finding proves robust to different dates of the first ESCO. The negative ESCO effect increases over time. The dynamic adjustment process produces small effects in the short run, but large effects in the long run. Moreover, the long-run ESCO effect differs across the stages of development. That is, for the high- and low-income countries, the short-run ESCO effect remains negative, but the long-run effects differ, remaining negative in high-income countries, but becoming positive in low-income countries. Finally, we discuss energy policy implications.
Empirical Economics, 2010
Using quantile regressions and cross-sectional data from 152 countries, we examine the relationsh... more Using quantile regressions and cross-sectional data from 152 countries, we examine the relationship between inflation and its variability. We consider two measures of inflation-the mean and median-and three different measures of inflation variability-the standard deviation, relative variation, and median deviation. All results from the mean and standard deviation, the mean and relative variation, or the median and the median deviation support both the hypothesis that higher inflation creates more inflation variability and that inflation variability raises inflation across quantiles. Moreover, higher quantiles in both cases lead to larger marginal effects of inflation (inflation variability) on inflation variability (inflation). We particularly consider whether thresholds for inflation rate or inflation variability exist before finding such positive correlations. We find evidence of thresholds for the effect of inflation (inflation variability) on inflation variability (inflation). That is, for low inflation (inflation variability) countries, inflation (inflation variability) does not affect inflation variability (inflation). Finally, a series of robustness checks, including a set of additional explanatory variables as well as controlling for potential endogeneity with instrumental variables, leaves our findings generally unchanged.