Panayiotis Tzeremes

Time-varying causality between energy consumption, CO 2 emissions, and economic growth: evidence from US states

This study is the first attempt to investigate the relationship between CO2 emissions, energy consumption, and economic growth at a state level, for the 50 US states, through a time-varying causality approach using annual data over the periods 1960–2010. The time-varying causality test facilitates the better understanding of the causal relationship between the covariates owing to the fact that it might identify causalities when the time-constant hypothesis is rejected. Our findings indicate the existence of a time-varying causality at the state level. Specifically, the results probe eight bidirectional time-varying causalities between energy consumption and CO2 emission, six cases of two-way time-varying causalities between economic growth and energy consumption, and five bidirectional time-varying causalities between economic growth and CO2 emission. Moreover, we examine the traditional environmental Kuznets curve hypothesis for the states. Notably, our results do not endorse the validity of the EKC, albeit the majority of states support an inverted N-shaped relationship. Lastly, we can identify multiple policy implications based on the empirical results.

Estimating Malmquist productivity indexes using probabilistic directional distances: An application to the European banking sector

Our paper by adopting the latest advances on the probabilistic characterization of directional distance functions as has been introduced by Daraio and Simar (2014), develops a Malmquist productivity index and presents its main decompositions. Specifically, the proposed productivity index is based on the probabilistic version of directional distance functions which are expressed as transformations of radial distances. We illustrate how these indexes can be computed and how different components can be derived. Specifically, we demonstrate how a probabilistic version of the following categories of change can be obtained: technical, efficiency, pure efficiency, scale efficiency, scale change factor and scale bias of technical change. Finally, we apply the probabilistic productivity indexes alongside with their decompositions to inputs/outputs data from a sample of 644 banks from 28 European countries between the years 2007, 2010 and 2014. The results suggest that the EU banks’ productivity levels remained relative unchanged from the initiation of U.S. prime crisis and during the EU sovereign debt crisis. Finally, during the U.S. prime crisis and the Global Financial Crisis, banks’ maintained their productivity levels by utilizing better their inputs and by exploiting scale economies. However, during the sovereign debt crisis banks maintained their productivity levels by investing on financial engineering competences.

Integration of tourism markets in Australia: An international visitor arrivals’ convergence assessment

By applying the methodological framework of transition modeling and econometric convergence tests introduced by Phillips and Sul, we reveal the existence of convergence clubs and transition convergence paths of international visitor arrivals for Australia. Specifically, by using monthly data of international arrivals over the period of January 1991 to September 2017, we provide evidence that tourism markets can integrate. The analysis suggests the identification of five distinct convergence clubs. This in turn signifies an integration phenomenon of Australia’s tourism market, which is revealed through the different convergence patterns of international visitor arrivals. Finally, it is evident that the revealed integration behavior of Australia’s international tourism market will enable policy makers to target better tourism needs through customized policies.

European financial crisis and bank productivity: evidence from Eastern European Countries

ABSTRACT The paper examines the productivity levels of the largest banks operating in the Eastern European countries over the period of the ongoing European financial crisis. Specifically, the analysis covers the periods of U.S. subprime crisis, the global financial crisis and the sovereign debt crisis. By adopting a fully nonparametric framework, it provides a probabilistic version of a directional input-oriented Malmquist productivity index alongside with its main decomposition. The results from the analysis suggest that banks have faced a deterioration of their productivity levels between the examined periods. It is evident that during the initiation of European sovereign debt crisis, the banks have weakened their ability to utilize efficiently their inputs of production and their ability to realize scale economies.