An investigation of export–import ratios in Turkey using spline regression models
Journal Title: Economic Research-Ekonomska Istraživanja - Year 2017, Vol 30, Issue 1
Abstract
This paper examines the use of spline functions in linear, squared, and cubic spline regression models and exhibits the estimation of spline parameters from data by ordinary least squares. Determination of the number and the location of knots is central to spline regression. In this paper, we initially propose a method based on the coefficient of determination R2 related to the estimation of knots in spline regression. This proposed method as applied to export–import ratio distributions in Turkey for the years 1923–2010 determines the knots, and linear, quadratic, and cubic spline regression models are established accordingly. Results reveal that spline regression models offer better results than polynomial regression models, and that the quadratic spline regression model is the best explanatory model for export–import ratio distributions in the smoothest spline regression models.
Authors and Affiliations
Keywords
Related Articles
- EP ID EP321970
- DOI -
- Views 47
- Downloads 0
Investor protection and country-level governance: cross-country empirical panel data evidence
Using a cross-sectional sample of yearly observations covering 132 countries over the 2007–2012 period, this article intends to provide empirical evidence that country-level governance has an impact on the strength of in...
Enhancing growth and welfare through debtfinanced education
Using an overlapping generations (OLG) model, we show how relatively small open economies can enhance their growth through educational subsidies financed via public debt and reduce their fertility rate. We show that subs...
Strategic management accounting in the Republic of Serbia
The transition process in the Republic of Serbia – and the transition from a planned to a market economy – makes managing a company more demanding and sophisticated. In these circumstances, to be competitive, companies m...
Sector-specific gender pay gap: evidence from the European Union Countries
The study aims to determine whether the unexplained gender wage gap varies in the different sectors of the economy and to identify the possible causes of these differences. Firstly, we estimate average treatment effect o...
Does motherhood explain lower wages for women in Macedonia?
The objective of the paper is to estimate the motherhood wage gap and its contribution to the gender wage gap in Macedonia, after considering workers’ characteristics and selectivity bias into the labour market for the c...