Article
Mathematics, Interdisciplinary Applications
Dexin Shi, Christine DiStefano, Alberto Maydeu-Olivares, Taehun Lee
Summary: Research has shown that the performance of root mean square error of approximation (RMSEA) is suboptimal for assessing structural equation models with small degrees of freedom (df). This study compares the performance of standardized root mean square residual (SRMR) and comparative fit index (CFI) in small df models with different factor loadings, sample sizes, and model misspecifications. The results indicate that in comparison to RMSEA, SRMR and CFI are less influenced by df and can provide more useful information in differentiating models with varying degrees of misfit. Researchers are advised to exercise caution when interpreting RMSEA for models with small df and rely more on SRMR and CFI.
MULTIVARIATE BEHAVIORAL RESEARCH
(2022)
Article
Economics
Tiantian Liu, Tadahiro Nakajima, Shigeyuki Hamori
Summary: By utilizing time-frequency-domain frameworks, this study examines the spillover effects of news-based economic uncertainty on renewable energy stock indices in the USA, Europe, and the world during the pandemic. Empirical results indicate that the impact of uncertainty on returns was concentrated at high frequencies, while that on volatilities appeared at low frequencies. The study reveals that the effects of uncertainty from COVID-19 on stock returns and volatilities were more significant than those from the global financial crisis.
EMPIRICAL ECONOMICS
(2022)
Article
Economics
Yiannis Karavias, Paresh Kumar Narayan, Joakim Westerlund
Summary: Dealing with structural breaks is crucial in economic research. This article introduces a new toolbox for detecting structural breaks, which is applicable to various panel data and robust to heterogeneity. Applying this toolbox to panel data of 61 countries, a structural break dated to the first week of April is detected, indicating the impact of COVID-19 on stock returns. The reaction of the markets was negative before the break but zero thereafter, possibly influenced by quantitative easing programs announced by central banks.
JOURNAL OF BUSINESS & ECONOMIC STATISTICS
(2023)
Article
Social Sciences, Mathematical Methods
Marco Giesselmann, Alexander W. Schmidt-Catran
Summary: An interaction in a fixed effects regression is usually specified by demeaning the product term. However, this strategy does not yield a within-unit estimator. The standard fixed effects interaction estimator reflects unit-level differences of the interacted variables. In cases where both variables vary within units, the standard fixed effects estimator may yield biased results, especially when there is correlation with unobserved unit-specific moderator.
SOCIOLOGICAL METHODS & RESEARCH
(2022)
Article
Social Sciences, Mathematical Methods
Liying Luo, James S. Hodges
Summary: This article introduces a new method, the age-period-cohort-interaction (APC-I) model, for studying the distinct effects of age, period, and cohort on individuals. The traditional age-period-cohort framework is insufficient in accurately representing cohort effects and can lead to problematic statistical assumptions. With this new model, it becomes possible to better understand the patterns of age, period, and cohort effects on women's labor force participation.
SOCIOLOGICAL METHODS & RESEARCH
(2022)
Article
Economics
Ashok Kaul, Stefan Kloessner, Gregor Pfeifer, Manuel Schieler
Summary: Using all outcome lags as predictors renders other covariates irrelevant, impacting estimation results and policy conclusions. Restricting the usage of outcome lags can result in other covariates obtaining positive weights.
JOURNAL OF BUSINESS & ECONOMIC STATISTICS
(2022)
Article
Economics
Tasso Adamopoulos, Loren Brandt, Jessica Leight, Diego Restuccia
Summary: Based on household-level panel data from China and a quantitative framework, this study examines the extent and consequences of factor misallocation in agriculture. It finds that within-village frictions in land and capital markets, linked to rural land institutions, disproportionately constrain more productive farmers. These frictions reduce aggregate agricultural productivity by affecting resource allocation across farmers and worker allocation across sectors, particularly in terms of the type of farmers operating in agriculture.
Article
Business, Finance
Minli Yu, Fu-Sheng Tsai, Hui Jin, Hejie Zhang
Summary: This paper examines the impact of digital finance on China's renewable energy consumption (REC) and explores the underlying mechanisms. The results show that digital finance significantly improves China's REC, with credit-related digital finance having the most significant impact. Loan scale and income level are identified as the main mediation variables through which digital finance affects REC.
FINANCIAL INNOVATION
(2022)
Article
Economics
Daniel Borup, Erik Christian Montes Schutte
Summary: This study demonstrates a strong correlation between Google search activity and employment growth in the United States, showing that Google search results are an effective predictor for future employment growth. By constructing a large panel of 172 variables and utilizing Google's own algorithms to find semantically related search queries, the Google Trends model outperforms other predictors in its ability to forecast employment growth.
JOURNAL OF BUSINESS & ECONOMIC STATISTICS
(2022)
Article
Business, Finance
Tadiwanashe Muganyi, Linnan Yan, Yingkai Yin, Huaping Sun, Xiangbin Gong, Farhad Taghizadeh-Hesary
Summary: This study investigates the influence of fintech on developments in China's financial sector between 2011 and 2018. The results establish a positive link between fintech and financial development by enhancing access, depth, and savings within China's financial institutions. Furthermore, the emergence of regtech in the area of financial regulation also improves financial development outcomes significantly.
FINANCIAL INNOVATION
(2022)
Article
Social Sciences, Mathematical Methods
Florian Keusch, Sebastian Baehr, Georg-Christoph Haas, Frauke Kreuter, Mark Trappmann
Summary: Researchers are increasingly combining self-reports from mobile surveys with passive data collection using sensors and apps on smartphones. However, the penetration of smartphones varies across different groups, and the limitations of different operating systems affect passive mobile data collection. Based on data from the PASS survey in Germany, smartphone ownership and specific operating systems are correlated with sociodemographic and substantive variables.
SOCIOLOGICAL METHODS & RESEARCH
(2023)
Article
Economics
Michele Lenza, Giorgio E. Primiceri
Summary: This paper illustrates how to handle a sequence of extreme observations when estimating a vector autoregression, and shows that dropping these observations may be acceptable for parameter estimation but inappropriate for forecasting the future evolution of the economy.
JOURNAL OF APPLIED ECONOMETRICS
(2022)
Article
Social Sciences, Mathematical Methods
Rolf Becker
Summary: This study examines systematic gender differences in survey participation and finds that the indirect measures of individual perceptions and benefits and costs are insufficient to explain the gender difference. Direct tests of theoretical approaches are needed in the future to better understand this issue.
METHODS DATA ANALYSES
(2022)
Article
Mathematics, Interdisciplinary Applications
Sacha Epskamp, Adela-Maria Isvoranu, Mike W. L. Cheung
Summary: This study introduces a method for estimating GGM by aggregating multiple datasets, discussing fixed-effects and random-effects MAGNA models, evaluating their performance in large-scale simulation studies, and exemplifying the method using four PTSD symptom datasets, summarizing findings from a larger meta-analysis of PTSD symptoms.
Article
Management
Xin-Jiang He, Wenting Chen
Summary: This paper considers the pricing of foreign exchange options under a modified Heston-Cox-Ingersoll-Ross hybrid model, which includes regime switching in key parameters. A closed-form pricing formula for foreign exchange options is derived and its performance is shown through numerical experiments. An empirical study suggests that this new model is a good alternative to the Heston-Cox-Ingersoll-Ross model for practical purposes.
IMA JOURNAL OF MANAGEMENT MATHEMATICS
(2022)
Article
Mathematics, Interdisciplinary Applications
Victoria Savalei, Yves Rosseel
Summary: This article provides an overview of different computational options for inference in structural equation modeling with normal theory maximum likelihood estimation, covering both incomplete normal and nonnormal data. By adjusting options such as observed/expected information matrix, numerical/analytic estimation, and evaluation location of information matrix and score vector outer product matrix, various standard errors and robust test statistics can be obtained. The article reviews the asymptotic properties of these computational variations and demonstrates how to obtain them using lavaan in R, aiming to encourage methodologists to study the impact of these options on the performance of standard errors and test statistics in SEM.
STRUCTURAL EQUATION MODELING-A MULTIDISCIPLINARY JOURNAL
(2022)
Article
Social Sciences, Mathematical Methods
Emily Chen, Ashok Deb, Emilio Ferrara
Summary: Credible evidence-based political discourse is crucial for democracy and ensuring fair elections. Studying online chatter, especially after important voting events, is essential. However, limited access to social media data often hampers our ability to understand and study online political discourse. To address this issue, a massive-scale, longitudinal dataset of U.S. politics- and election-related tweets has been publicly released, aiming to empower the research community and facilitate the study of relevant scientific and social issues.
JOURNAL OF COMPUTATIONAL SOCIAL SCIENCE
(2022)
Article
Mathematics, Interdisciplinary Applications
Oliver Luedtke, Alexander Robitzsch
Summary: This article compares different approaches for estimating cross-lagged effects with a cross-lagged panel design under a causal inference perspective. The results indicate that the cross-lagged panel model provides biased estimates of the cross-lagged effect in the presence of unmeasured confounding. Similarly, the latent variable-type approaches strongly depend on specific parametric assumptions and produce biased estimates under different data-generating scenarios. The findings highlight the importance of controlling for confounding factors and considering the applicability of parametric assumptions in estimating cross-lagged effects.
STRUCTURAL EQUATION MODELING-A MULTIDISCIPLINARY JOURNAL
(2022)
Article
Business, Finance
Maxwell Chukwudi Udeagha, Marthinus Christoffel Breitenbach
Summary: The extant literature has produced mixed evidence on the relationship between financial development and ecological sustainability. This study uses the environmental Kuznets curve (EKC) approach to analyze the direct and indirect impacts of financial development on ecological quality. The empirical analysis based on South Africa's data from 1960 to 2020 reveals that financial development contributes to ecological integrity and sustainability, confirms the validity of the EKC theory, and demonstrates the role of energy usage and other factors in pollution.
FINANCIAL INNOVATION
(2023)
Article
Social Sciences, Mathematical Methods
Alrik Thiem
Summary: Qualitative Comparative Analysis (QCA) is a method of causal inference, but recent methodological research has found that certain solution types of QCA fail fundamental tests of correctness. On the other hand, the parsimonious solution type (QCA-PS) does not have these issues.
SOCIOLOGICAL METHODS & RESEARCH
(2022)
