International Journal of Computational Economics and Econometrics (7 papers in press)

Regular Issues

• Evaluation and improvement of two homogeneous stock trading systems under computational and experimental finance in China: based on IASM model  
  by Zhuwei Li, Baolu Wang, Rong He 
  Abstract: Artificial simulated stock market model is widely used because it can provide repeatable simulation experiment platform for different trading systems to play a role in the financial market. Based on the investor structure, trading behaviours and institutional rules of Chinese stock market, this paper uses intelligent artificial stock market (IASM) model, aims to build a comprehensive evaluation index system of stock market quality, evaluate the effect of the T + N trading system and the price limit system on the quality of Chinese stock market, and then gives analysis results and improvement suggestions. It is found that T + 0 trading system and narrowing the range of limit price fluctuation can significantly improve the quality of Chinese stock market. At the same time, among the combinations of various T + N trading systems and price limit systems, the combination of T + 0 trading system and 5% price limit system of Chinese stock market has the highest comprehensive quality.
  Keywords: stock trading system; IASM model; market quality evaluation; system improvement; computational and experimental finance.
  DOI: 10.1504/IJCEE.2024.10063567
   
  
• General financial economic equilibria  
  by Dilip B. Madan 
  Abstract: Uncertain demands and supplies, given prices, may not be equated to define an equilibrium. New concepts of equilibria are then formulated by modeling markets as an abstract agent absorbing the clearing risk. The new equilibria invoke the theory of acceptable risks to define a two-price equilibrium termed a general financial economic equilibrium (GFEE). The market sets two prices for each commodity, one at which it buys and the other at which it sells. The two prices are determined by targeting the aggregate random net inventory and net revenue exposures to be acceptable risks. The introduction of a two price labour market naturally leads to the concept of both an equilibrium unemployment rate and an equilibrium unemployment insurance rate. It is shown that the unemployment rate rises with the productivity of the economy and can be mitigated by expanding the number of products.
  Keywords: acceptable risks; distorted expectations; equilibrium unemployment; equilibrium unemployment insurance.
  DOI: 10.1504/IJCEE.2024.10064461
   
  
• The Trade led-growth hypothesis in China and G8 countries: pooled mean group estimation  
  by Khalid Usman 
  Abstract: This research aims to examine the trade-led growth (TLG) hypothesis, especially the relationship between trade openness (TRA) and economic growth (GDP) in China and G8 (UK, Russia, Canada, USA, France, Italy, Germany, Japan) economies with two threshold variables, labour force (LF) and gross fixed capital formation (GFC). The study explores cointegration among these variables and evaluates their short and long-term effects utilising data from 1992 to 2021. Different tests, including CADF unit root, Westerlund panel cointegration, and pooled mean group estimation (PMG), are used while considering cross-section dependence (CD) and D-H tests. The PMG estimator identifies a positive long-term impact of GFC on GDP in both China and the G8 economies. Conversely, the D-H test exposes no causal relationship between GDP, labour force and gross fixed capital, and trade and gross fixed capital. These findings recommend that policymakers should prioritise trade development by spending on capital formation and labour production to improve economic growth. Furthermore, adopting amplified trade cooperation between China and G8 economies is suggested.
  Keywords: trade openness; economic growth; pooled mean group estimation; PMG; D-H test; trade-led growth hypothesis; China; G8 countries.
  DOI: 10.1504/IJCEE.2024.10064462
   
  
• Fiscal policy and private investment: some anomalies from Saudi Arabia  
  by Salaheddine El Omari, Noureddine Ben Lagha 
  Abstract: This article examines the relationship between fiscal policy and private investment in Saudi Arabia, a country heavily dependent on government spending for its economy. Rather than solely analysing aggregate government expenditures, our study focuses on various government spending components, such as infrastructure, human resources, health and social development, economic resources, transport and communication, and municipal services. We employ the auto-regressive distributed lag (ARDL) model and an error-correction approach to assess the short-term and long-term impacts of these components on private investment. The empirical findings indicate that all components of public expenditures in Saudi Arabia have significant effects on private investment, in the long-run and/or the short-run, except spending on human resources. This lack of impact from expenditures on human resources development contradicts the theoretical prediction that such public spending stimulates labour productivity and encourages private investment.
  Keywords: government expenditures; fiscal policy; private investment; crowding-out effect; crowding-in effect; cointegration; error-correction model; Saudi Arabia.
  
  

Special Issue on: ICOAE2023 Applied Economics and Competition

• Minimum wage as the determinant of productivity in EU countries  
  by Jana Kopecká, Lenka Viskotová, David Hampel 
  Abstract: When introducing and setting minimum wages, primarily to reduce poverty and avoid undesirable phenomena in the labour market, it is necessary to monitor the impact on various aspects of the real economy. This paper focuses on demonstrating the positive impact of nominal minimum wage growth on productivity in EU countries. A cluster analysis is used to divide countries into two distinguished clusters. Using panel regression, the effect of a minimum wage is found to be significant and positive. To rule out spurious regressions and to demonstrate the robustness of the performed analyses, appropriate covariates are included in the models, different forms of productivity are modelled, and the models are also estimated independently for each cluster.
  Keywords: cluster analysis; company production process; EU27; human capital; labour costs; low-wage employees; minimum wage; productivity of labour; panel regression model; training of employees.
  DOI: 10.1504/IJCEE.2024.10062965
   
  
• Heterogeneous impacts of the COVID-19 pandemic on financial performance among European hotels  
  by Tomáš Heryán, Petra Růčková, Jana Šimáková 
  Abstract: The purpose of the paper is to investigate whether there would have been differences in the change of shareholders’ funds caused by the COVID-19 pandemic in Europe among medium-sized hotels. Annual data for 17 European countries have been obtained from the Bureau van Dijk Orbis database and clustered with epidemiological data from NUTS-3 regions among selected countries. Using heterogeneous difference-in-differences with cohorts, the average treatment effect on treated has been estimated with panel data. Specifically, differences between the levels of shareholders’ funds and the impact of the moderation effect between return on equity and dividends during the pandemic considering the morbidity among pandemic patients in selected regions. The results have suggested that the impact of the pandemic varies between hotels with a high concentration of ownership structure having a major owner and those with a low concentration and dispersed ownership structure.
  Keywords: heterogeneous impacts; COVID-19 pandemic; European hotels; financial performance; heterogeneous DiD models; difference-in-differences; cohorts.
  DOI: 10.1504/IJCEE.2024.10063831
   
  
• Tourism product life cycle dynamics: a computational approach to identifying tourism stages in Italy and Greece  
  by Zacharoula Kalogiratou, Theodoros Monovasilis, Nicholas Tsounis, Gerassimos Bertsatos 
  Abstract: An adaptation of the tourist area life cycle model is used to computationally identify each stage of the tourism product life cycle to explain the dynamics of tourist arrivals to Italy and Greece. It was found that the first stage of the cycle started considerably earlier in Italy than in Greece, well before WWII, while in Greece, it started during the 1950s. A new life cycle began in Greece in 2012. Italy is still in the consolidation stage and has shown growth, and this stage will continue until 2044. However, if suitable policies are applied in terms of investments in infrastructure and human capital and in marketing, this cycle can be interrupted, and a new cycle could begin directly from the development stage, where the growth rates of the number of tourist arrivals are exponential. Investing and providing services in alternative tourism may lead to this result.
  Keywords: tourism; product life cycle; Italy; Greece.
  DOI: 10.1504/IJCEE.2024.10064668