This paper studies the cost efficiency of bank in a partial universal banking system (PUBS), Taiwan. Instead of assuming one common technology in the bank cost function, two technologies are assumed to be imbedded in the cost function. We use fee revenues as threshold to divide the banks into two technologies. A bank whose fee revenues exceeding the threshold is designated as universal bank tec...

Our approach involves the use of switching regime models, to take account of the structural asymmetry and time instability of Okun’s coefficient. More precisely, we apply the non-dynamic panel transition regression model introduced by Hansen (1999) to a panel of 20 OECD countries over the last three decades. With all specifications applied, the tests lead to the rejection of the null hypothesis...

The aim of this paper is to assess the sign and magnitude of the nonlinear effects of main socio-economic variables as well as the financial development index(measured by private credit to GDP ratio) on the environmental pollution. Specifically, the interaction of the socio-economic variables with financial development as a threshold variable in affecting CO2 emission is studied. In this respec...

This study constructs a panel threshold regression model to explore the price impact of foreign institutional herding of firms listed in the Taiwan Stock Exchange during January 2000 to June 2008. Our panel threshold model is constructed to explore the price impact of foreign institutional investors’ herding in the Taiwan stock market after controlling the firm size. By examining the presence o...

Although identifying the existence and the nature of household-level poverty traps would have important implications for the design of poverty reduction policies empirical evidence is still scant. A small, growing empirical literature has begun testing for poverty traps in the form of threshold points in non-linear welfare dynamics employing a variety of quantitative methods and producing a var...

This paper attempts to re-examine the finance-trade nexus and tests whether higher levels of financial development can reduce trade openness. Using static dynamic panel threshold regression techniques based on 64 countries over period 1970-2014, this study shows that fosters openness until a certain level is achieved beyond level, further increases in lead decline The results suggest there need...