Eric Iksoon Im

Stationarity Condition for AR Index Process

The stationarity conditions for an autoregressive (AR) process in general are reduced to a remarkably simple inequality if the lag coefficients are restricted to be identical. The condition is not only analytically elegant but also applicable in checking the validity of the stationarity conditions for such a restricted AR process of any order.We are deeply indebted to Professor Paolo Paruolo, NP co-editor of Econometric Theory, and anonymous referees for constructive comments and suggestions that led to significant improvements. Errors, if any, are solely ours.

The interaction of tourism and cyclone activity In East Asia: Sustainability and disasters

This research investigated the relationship between cyclone activity and tourism in the Northeast Asian and Southeast Asian regions. A dataset on the damage impact of cyclones was constructed based on the Tropical Cyclone Best Track tables and the Annual Tropical Cyclone Reports provided by the United States National Climatic Data Center for the period 1995–2014. A damage index was based on the wind speed when each cyclone went through a region and the distance of the region to the largest city in the vicinity. The results showed that there were feedback effects between these cyclones and unsustainable tourism where cyclone damage reduced the number of tourist arrivals and some unsustainable activities by the tourism industry increased the cyclone damage. We then examined the disparities among the affected countries in East Asia. The results showed that that except for Philippines, which endured much more cyclone damage than that aggregate level, the other countries were either at or below the average level of damage.

Capital Estimation: Theory and US-Japan Comparative Study

Abstract: Capital stock estimation is a thorny task to deal with. To circumvent the problem, we derive a function which does not contain capital stock, yet whose regression indirectly estimates the production function. Consequently, the estimated production function can generate the capital stocks and depreciation rates. The approach applied to US data resulted in estimates of both production function and capital stock very close to those differently estimated in existing literature. Japan data are then applied as a comparative study.