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Record W2074882030 · doi:10.5539/ijef.v3n1p44

Mean Diversion: When Getting Back to the Old Economy Isn’t Possible

2011· article· en· W2074882030 on OpenAlexvenueno aff
Azhar Iqbal

Bibliographic record

VenueInternational Journal of Economics and Finance · 2011
Typearticle
Languageen
FieldEconomics, Econometrics and Finance
TopicUnemployment and Economic Growth
Canadian institutionsnot available
Fundersnot available
KeywordsEconomicsStandard deviationVolatility (finance)Labour economicsFinancial economics

Abstract

fetched live from OpenAlex

Policy makers love to speak about restoring the economy and the associated “good” jobs as voters imagine they were in the past. But is such economic nostalgia reasonable in a dynamic global economy? Moreover, has it actually been true that the economy, and particularly the labor market, were ever as stable as we imagine? Our work here suggests that the labor market has been constantly evolving since 1970 and that there is no tendency to return to “normal” if such a normal were to be defined as it was in the good old days. Moreover, labor market policies built on such nostalgia in an attempt to return to the past are misplaced at best and likely to hurt workers more by providing false hopes and also lead to a misallocation of economic resources than if forward looking policies were adopted to adapt workers for the future of the labor market opportunities. Our efforts suggest that since 1970 the mean and standard deviation of employment growth had actually been decreasing for each decade up until the 1990-99. For the most recent (2000-09) period, the standard deviation shows an uptick and a significant reduction in the mean. Moreover, when we evaluate the entire period as a whole, 1970-2009, we find that the trend coefficient is statistically significant and has a negative sign. That implies the employment growth rate has a decreasing pattern over time. In addition, the high volatility in the employment series is evidence by a standard deviation (1.93%) that is greater than the mean (1.63%). We apply the traditional unit root tests, efficient unit root tests, and unit root tests with structural break on the employment series. In addition, we follow Hamilton’s approach and apply an Auto Regressive Conditional Heteroscedasticity (ARCH) approach on the employment series Our results suggest that the level of the employment growth rates is mean-diverting and subject to a structural break. Second, in the presence of the ARCH effect, OLS standard errors can be misleading, with a spurious regression possibility. Finally, the ARCH effect and unit root problem have serious consequences for forecasting and the forecast band could be narrower than the actual. Key Words: Employment; Structural Change; ARCH; Mean Diversion.JEL Classification: C10; J21; J30

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.008
metaresearch head score (Gemma)0.031
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Theoretical or conceptual · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: none
Teacher disagreement score0.015
Threshold uncertainty score0.040

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0080.031
Meta-epidemiology (narrow)0.0010.000
Meta-epidemiology (broad)0.0010.001
Bibliometrics0.0010.002
Science and technology studies0.0070.011
Scholarly communication0.0150.020
Open science0.0010.006
Research integrity0.0050.013
Insufficient payload (model declined to judge)0.0110.003

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.042
GPT teacher head0.201
Teacher spread0.159 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designTheoretical or conceptual
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations3
Published2011
Admission routes1
Has abstractyes

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