Marvasti, Akbar and Smyth, David (2008): Barter and Business Cycles: A Comment and Further Empirical Evidence.
Download (236Kb) | Preview
The purpose of this comment is a critical evaluation of the empirical analysis made by Cresti (2005) and her finding that commercial barter behaves differently than corporate barter during the course of business cycles. Here, we correct the arbitrary replacement of the missing observations by filling them with forecasts using the Box-Jenkins ARMA and Kalman filter methods before performing the unit root and cointegration tests. Although the ECM estimates for various measures of business cycle are occasionally inconsistent, overall the inventory measures and capacity utilization results suggest that barter transactions are counter-cyclical regardless of the size of the business. Additionally, we find that barter rises with inflationary trend, dissemination of access to computer technology, tax rates and tax laws requiring disclosure of barter transactions.
|Item Type:||MPRA Paper|
|Original Title:||Barter and Business Cycles: A Comment and Further Empirical Evidence|
|Keywords:||Barter, Business Cycles, Error Correction Model, Box-Jenkins ARMA|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C22 - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
|Depositing User:||Akbar Marvasti|
|Date Deposited:||01. Nov 2009 14:39|
|Last Modified:||14. Feb 2013 12:34|
Cresti, Barbara (2005) US domestic barter: an empirical investigation, Applied Economics, 37, 1953-1966.
Enders, Walters (2004) Applied Econometric Time Series, Second Edition, New York: John Wiley & Sons.
Greene, William H. (2000) Econometric Analysis, Upper Saddle River, New Jersey: Prentice Hall.
Griliches, Zvi, and Intriligator, Michael D., eds. (1986) Handbook of Econometrics: Volume 3, New York: Elsevier Publishers.
Harvey, A.C. (1981) Time Series Models, New York: John Wiley & Sons.
Harvey, A.C., and Pierse, R.G. (1984) Estimating Missing Observations in Economic Time Series, Journal of the American Statistical Association, 79, 125-131.
Kalman, R.E. (1960) A new approach to linear filtering and prediction problems, Transactions ASME Journal of Basic Engineering, 82, 34-35.
Kennedy, Peter (2003) A Guide to Econometrics, Cambridge, Mass: MIT Press.
Little, Roderick J. A., and Rubin, Donald B. (2002) Statistical Analysis With Missing Data, New York: John Wiley & Sons
Marvasti, Akbar., Smyth, David (1998) Barter in the U.S. Economy: A Macroeconomic Analysis, Applied Economics, 30, 1077-88.
Marvasti, Akbar., Smyth, David (1999) The Effect of Barter on the Demand for Money: An Empirical Analysis, Economics Letters, 64, 73-80.
Marvasti, Akbar., Smyth, David (2001) The Impact of Trend and Cyclical Behavior of Inflation and Inventories on Barter, Applied Economics Letters, 8, 351-353.
Marvasti, Akbar., Smyth, David (2006) The Role of Barter in Money-Income Relationship, Pacific Economic Review, 11, 395-408.
Marvasti, Akbar (2006) An analysis of barter in broadcasting industry, working paper.
Ryan, Kevin F., and Giles David E. A., (1998) Testing for Unit Roots in Economic Time Series with Missing Observations, in Advances in Econometrics: Vol. 13, Stamford, Connecticut: IAI Press Inc.