We analyze the post-float real exchange rates for a group of OECD countries using the newly developed threshold test and tests for unit roots against stationary but nonlinear alternative by Caner and Hansen ( 2001). These tools help us disentangle the nonlinearity from the nonstationarity rigorously for the first time in the literature. After applying the threshold test and unit root tests: we find evidence for non-linearity of exchange rates. Specifically real exchange rates behave like a unit root in a band and when the depreciation or appreciation of the currency against $US exceeds the boundaries of the band , the real exchange rates are mean-reverting. The threshold value is treated as unknown and estimated in the model.
During the current episode of globalization, capital has flown primarily to high income countries. Attempts to explain this Lucas Paradox have focused on the quality of institutions. We analyze data from a major institutional investor, the Norwegian Sovereign Wealth Fund, to estimate the separate effects of income per capita and institutional quality on international capital flows. After controlling for institutional quality, GDP per capita remains the primary determinant of investment.
Although there is a consensus about time variation in market betas, it is not clear how this variation should be captured. Several researchers continue to analyze different versions of the conditional CAPM. However, Ghysels (1998) shows that these conditional CAPM models fail to capture the dynamics of beta risk. In this study, we introduce a new model, threshold CAPM, which outperforms both the conditional and unconditional CAPMs by generating smaller pricing errors. We also show that the beta risk changes through time with the changes in the economic environment and the dynamics of time variation of beta differ across industries. These findings have important implications for asset allocation, portfolio selection, and hedging decisions.
This study aims to identify whether ischemia-modified albumin (IMA) can be used as a marker in the diagnosis of sepsis in the term patient population.
In the study group 30 sepsis patients and 30 healthy neonatal, control group, whose gestational ages were ≥38 weeks were included. Blood samples were taken for IMA levels at baseline and on the 3rd and 10th days of the treatment. The IMA values obtained were compared with those for C-reactive protein (CRP).
The baseline CRP, IMA, and adjusted IMA levels of the patients in the study group were statistically higher compared to the control group (p<0.05). IMA and adjusted IMA values measured in the study group on the 3rd and 10th days decreased gradually and significantly compared to initial levels (p<0.0001). There was a positive correlation between the baseline IMA levels and CRP values among the patients with sepsis (r: 0.371, p<0.05). The diagnostic cut-off value of IMA in term of diagnosis of the neonatal sepsis was found to be 0.644 ABSU (p<0.0001), with a sensitivity of 93.3% and specificity of 66.7%.
We suggest that IMA can be used as a useful biomarker in the early diagnosis of neonatal sepsis.