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Record W4292954389 · doi:10.17760/d20409516

Essays in empirical macroeconomics and finance

2021· dissertation· en· W4292954389 on OpenAlexaboutno aff
Wenting Liao

Bibliographic record

Venuenot available
Typedissertation
Languageen
FieldEconomics, Econometrics and Finance
TopicMarket Dynamics and Volatility
Canadian institutionsnot available
Fundersnot available
KeywordsEconomicsExchange rateShock (circulatory)Dynamic factorMonetary policyEconometricsInterest rateFactor analysisBayesian vector autoregressionVolatility (finance)Monetary economicsCommodityFinancial crisisBayesian probabilityMacroeconomicsFinance

Abstract

fetched live from OpenAlex

Essay 1: Exchange Rate Dynamics and Global Monetary Policy Spillovers: Time-Varying Dynamic Causal Effects. We propose a novel econometric approach to estimate time-varying dynamic causal effects of structural shocks using external instruments in a factor-augmented-VAR model. Using the Bayesian MCMC estimation method we estimate a model consisting of output, inflation rates, interest rates, and exchange rates for the United States, Canada, Germany, Japan, and the United Kingdom. We find uniformly strong evidence over time that the exchange rate overshoots in response to an exogenous monetary policy shock. Furthermore, we find that the monetary policy shock played a significant role in the exchange rate dynamics, and its contributions were particularly large during the 2008-2009 financial crisis. Essay2: Commodity Return Comovement, Exchange Rate, and Uncertainty Shock. This paper investigates how the uncertainty shock affects the commodity return empirically, using a time-varying parameter dynamic factor model with stochastic volatility (TVP-DFM-SV). We extract a common factor and eight sector-specific factors from 43 different commodity returns (Ma, Vivian, and Wohar, 2019). The common factor is interpreted as the combination of the shocks which only affects the commodity markets idiosyncratic through the general equilibrium (Alquist, Bhattarai and Coibion, 2019), and is orthogonal to the sector-specific factors and commodity-idiosyncratic factors. Then we show the time-varying impulse responses of the common factor and several relevant marco fundamentals to uncertainty shock identified by the external instrument variable (IV). We find that uncertainty shock decreases the commodity return through the common factor, and this effect is time-varying, specifically, during the recession it is stronger. Besides, the uncertainty shock could be a reason behind the negative relationship between commodity return and the strength of the US dollar. Essay 3: A New Approach to Connecting the Dividend-Price Ratio and Stock Returns. There is a long debate on the performance of dividend-price ratio on the stock returns predictability. Most of the literature argues that the predictability decreases after the 1990s. Since Campbell-Shiller decomposition shows that the dividend-price ratio contains the information of both the future returns and future dividend growth, a linear predictive regression of stock returns on the dividend-price ratio may generate biased results due to the measurement error or omitted variable issues. Therefore, this paper proposes a new approach to study the nonlinear Granger causality of dividend-price ratio on stock returns. We conduct an unobserved component model and connect stock returns and the dividend-price ratio through their innovations. We show that our model can be represented by a reduced-form ARMAX process, and it can increase the in-sample predictability.--Author's abstract

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)0.004
metaresearch head score (Gemma)0.019
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Simulation or modeling · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: none
Teacher disagreement score0.011
Threshold uncertainty score0.036

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0040.019
Meta-epidemiology (narrow)0.0010.000
Meta-epidemiology (broad)0.0010.001
Bibliometrics0.0030.005
Science and technology studies0.0010.003
Scholarly communication0.0040.005
Open science0.0010.002
Research integrity0.0030.004
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 head0.022
GPT teacher head0.259
Teacher spread0.237 · 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 designSimulation or modeling
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

Citations0
Published2021
Admission routes1
Has abstractyes

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