Osama Sweidan - Academia.edu (original) (raw)

Papers by Osama Sweidan

International Journal of Applied Econometrics and Quantitative Studies, Feb 1, 2004

This Paper aimed to re-test the hypothesis whether the improved inventory control affects the inv... more This Paper aimed to re-test the hypothesis whether the improved inventory control affects the inventory investment or not. This paper used model. The contribution of this letter has two dimensions; first, this paper extends the time horizon by using a quarterly data of the U.S. economy for the period 1959-2001. Also, it modifies Bechter and Stanley model under certain assumption and use the adjusted model to re-exam the hypothesis. The results of the paper support the idea that improved inventory control has a significant impact on the behavior of inventory investment. In addition, it shows that the improvement vary from one sector to another. Further, the paper showed that the speed of adjustment will be faster if the firms ignore holding inventories as a buffer stock.

Renewable and Sustainable Energy Reviews, 2015

The International Trade Journal, 2013

It is expected that inflation we will be an important issue in Jordan because the central bank of... more It is expected that inflation we will be an important issue in Jordan because the central bank of Jordan is adopting an easy monetary policy to help promoting the financial market.Therefore, this paper explores the relation between inflation and economic growth to check whether if this relation has a structural breakpoint effect or not.This paper shows that the structural breakpoint effect occurs at inflation rate equal to 2% and after this level the effect turns to be negative. This result says that the maneuver of the monetary policy will be very limited. And, the central bank of Jordan should pay attention to the inflation phenomenon while conducting the new monetary policy.

Applied Econometrics and International Development

This study seeks to test the hypothesis that policy interest rate in Jordan adjusts differently t... more This study seeks to test the hypothesis that policy interest rate in Jordan adjusts differently to expansionary versus contractionary monetary policies. The answer highlights on the behavior of the central bank of Jordan (CBJ), and helps to conclude if the CBJ is biased in favor of certain policy. The current study applies threshold autoregressive (TAR) and momentum TAR (MTAR) models. The results show that policy interest rate in Jordan displays symmetric adjustment which supports the idea that the CBJ is not prejudice of either easy or tight monetary policy.

Ekonomska Istraživanja / Economic Research

The International Trade Journal

Studies in Economics and Finance, 2009

ABSTRACT Purpose – The purpose of this paper is to examine the hypothesis that a central bank&amp... more ABSTRACT Purpose – The purpose of this paper is to examine the hypothesis that a central bank&amp;#39;s asymmetric preferences are able to explain inflation rate in a developing country. In addition, it seeks to help comprehend movements of inflation rate in Jordan and to understand Central Bank of Jordan preferences regarding inflation rate and output. Design/methodology/approach – A standard monetary model consists of a central bank&amp;#39;s loss function and an economy structure is constructed, which acts as a constraint on the central bank&amp;#39;s behavior. Then, a distribute-lag version of the derived model is estimated using ordinary least squares method. Findings – The empirical evidence from the Jordanian economy shows that inflation rate relies on the variances of inflation rate and the variances of output. This finding supports the hypothesis that a central bank&amp;#39;s asymmetric loss function is able to justify inflation rate movements. Moreover, the Jordanian central banker prefers higher inflation rate and higher level of output. Originality/value – The paper provides evidence from a developing country regarding the ability of the asymmetric central bank preferences to justify inflation rate movement. In addition, the paper links central banks&amp;#39; losses with the uncertainty level and inflation rate in the economy.

OPEC Energy Review, 2012

The current paper seeks to examine the relationship between energy consumption and real output in... more The current paper seeks to examine the relationship between energy consumption and real output in the United Arab Emirates (UAE) economy. Technically, we assess the following two questions: 'does the increase in energy consumption cause more economic growth in the UAE economy?' or 'does the rapid economic growth lead to more energy consumption?' We utilise the bounds testing approach to cointegration and error correction model and Granger causality test to achieve the paper goal. The paper employs an annual data series of the UAE real gross domestic product and energy consumption over the 1973-2008 period. The findings of the paper have two levels: shortrun and long-run. In the short-run, the results reveal a clear statistically significant bidirectional positive relationship between energy consumption and real output in the UAE economy. However, in the long-run the estimate illustrates only one relationship prevails from the short-run. This one is the statistically significant positive unidirectional relationship running from real output to energy consumption.

Journal of Economic Studies, 2011

... English, W., Nelson, W., Sack, B. (2002), "Interpreting the significance of the lagg... more ... English, W., Nelson, W., Sack, B. (2002), "Interpreting the significance of the lagged interest rate in estimated monetary policy rules", Contributions to ... Mendonca, H., Filho, J. (2007), "Economic transparency and effectiveness of monetary policy", Journal of Economic Studies, Vol. ...

International Review of Economics, 2010

This paper seeks to adjust Taylor rule to mimic an environment that has central bank inability (l... more This paper seeks to adjust Taylor rule to mimic an environment that has central bank inability (losses). Moreover, the current paper is aiming at investigating the effect of the new features of Taylor rule within a context of a New-Keynesian model on a developing economy. The current paper concludes that we can utilize Taylor rule within a New-Keynesian model to introduce the influence of the central bank inability on the economy. Central bank inability decreases both expected future real interest rate and expected future real output. On the contrary, it increases expected future nominal interest rate and expected future inflation rate. Moreover, we prove that the effect of central bank inability has larger effect on the expected inflation rate more than the influence of targeted inflation rate.

Global Economy Journal, 2000

Global Economic Review, 2008

This article was downloaded by: [ ] On: 01 July 2011, At: 01:49 Publisher: Routledge Informa Ltd ... more This article was downloaded by: [ ] On: 01 July 2011, At: 01:49 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK ... Publication details, including ...

Economic Modelling, 2011

The current paper seeks to build a theoretical explanation to understand why many central banks f... more The current paper seeks to build a theoretical explanation to understand why many central banks failed to reduce inflation variability despite having the desire. The result proves that central bank's preferences are a necessary condition but not sufficient to guarantee lower inflation variability. The structure of the economy and the types of the shocks are significant factors.

Asian-Pacific Economic Literature, 2011

This paper seeks to understand the causes and consequences of central banks' losses. Ignorance of... more This paper seeks to understand the causes and consequences of central banks' losses. Ignorance of this vital issue over a sustained period has led to negative impacts on economies and on central banking and monetary policy effectiveness. Data from developing countries and economies in transition show that central bank losses have reached significant magnitudes. Engaging in quasi-fiscal activities is responsible for most such losses because it increases central banks' expenditures. The main features of these fiscal activities are their large size and riskiness, and they are difficult to control. Central bank revenues can also be negatively affected because of declines in inflation rates and in the demand for money.a pel_1281 29..42

International Journal of Applied Econometrics and …, 2004

Journal of Economic Research (JER), 2014

ABSTRACT This paper investigates theoretically using an economic model whether inflation targetin... more ABSTRACT This paper investigates theoretically using an economic model whether inflation targeting policy is an optimum policy or not in developing countries, where central banks have engaged in quasi fiscal activities. Technically, the paper compares between two strategies; inflation targeting policy and Morris and Shin (2002a) strategy, in which the expected inflation rate is built based on external and internal signals. The result proves that inflation targeting policy is not an optimum under a dependent central bank. Agents in developing countries do not react to inflation targeting policy because of the high uncertainty level. They prefer to rely on external signals. Moreover, we prove that an effective inflation targeting policy requires more economic certainty and stability.

The goal of this paper is to extend the model of Cecchetti and Ehrmann 2000 to study the case of ... more The goal of this paper is to extend the model of Cecchetti and Ehrmann 2000 to study the case of developing countries that have a constraint in conducting their monetary policies. Contrary to Cecchetti and Ehrmann 2000 model, our model shows that the existence of such a constraint i.e. cost restriction allows the aggregate demand shock to affect the output−inflation variability. Our model also shows that adding a monetary policy cost restriction to the central bank loss function leads to either a steeper or flatter efficient frontier. This implies that the effect of monetary policy to offset aggregate demand and supply shocks is reduced. Citation: Sweidan, Osama and Fadwa Kalaji, (2005) "The central bank cost constraint and output−inflation variability: a note