• Asian Journal of Business Environment
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• v.8 no.4
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• pp.37-44
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• 2018

Purpose - The artificial intelligence industry plays an increasingly significant role in stimulating the development of United States of America's economy. On account of this background, this paper attempts to explore the impact of artificial intelligence industry on United States of America's macroeconomy. Research design, data, and methodology - This paper mainly focuses on the impact of artificial intelligence industry on GDP, employment, real income, import, export and foreign direct investment. Furthermore, the Phillips-Perron test and Canonical cointegrating regression will be employed to examine the impact of artificial intelligence industry on United States of America's macroeconomy with a sample form 2010-Q1 to 2017-Q4. Results - Via the empirical analysis, the results reveal that the artificial intelligence industry has a positive effect on United States of America's GDP, employment, real income, export and foreign direct investment. Conversely, the artificial intelligence industry has a negative effect on United States of America's import. Conclusions - In summary, the impact of artificial intelligence industry on United States of America's macroeconomy is positive and significant in statistics. Therefore, the government of United States of America should put more input into artificial intelligence industry.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.7
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• pp.241-249
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• 2020

The role of money in the modern economy highly determines the intensity and the development of the macroeconomy. The money supply is assumed to be as much as money demand, which reflects the economic character of a country and indicates the growth and development of macroeconomy. In Indonesia, the money supply (M1) is related to the economic dynamics in either the monetary market or the goods market. This research aims at analyzing factors that influence the money supply and to what extent the economic factors affect the money supply in Indonesia. The analysis method used in this research was Vector Autoregressive (VAR) with some variables, such as money supply (M1), interest rate, and Gross Domestic Product (GDP) from the 1st quarter of 2001 until the 1st quarter of 2013. The data collection method was in the form of data compilation from credible sources, such as Bank of Indonesia (BI), Central Bureau of Statistics (CBS), and International Financial Statistics (IFS). To obtain adequate analysis results, several tests were taken, such as unit-root test, Granger causality test, and optimal lag. VAR analysis formulates the correlation among independent variables, so it also sees the study of impulse response and matrix decomposition.

• Environmental and Resource Economics Review
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• v.29 no.2
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• pp.171-194
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• 2020

We revisit the impact of oil shocks on the Korean economy and examine how this impact varies depending on a business cycle. First, we estimate the probability of a recession through a logistic probability distribution, and correct the probability to match business cycles announced by the Korea National Statistical Office. We set up a STVAR model to analyze the response of macroeconomic variables to oil shocks according to business cycles. We find that oil shocks during the recession have a negative effect on GDP in the mid- and long-term, but during the expansion, GDP does not show a statistically significant response to oil shocks. We presume that this finding is associated with the factors of both the increase in demand for consumption and the increase in current account during the economic boom. Also, we find that the impact of oil shocks on the price level was also observed differently in terms of the persistence of inflation by business cycle. These results highlight the importance of an application of a regime switching model, which has been widely used in energy economics in recent years.

• KDI Journal of Economic Policy
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• v.40 no.1
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• pp.1-30
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• 2018

Ongoing demographic changes have brought about a substantial shift in the size and age composition of the population, which are having a significant impact on the global economy. Despite potentially grave consequences, demographic changes usually do not take center stage in many macroeconomic policy discussions or debates. This paper illustrates how demographic variables move over time and analyzes how they influence macroeconomic variables such as economic growth, inflation, savings and investment, and fiscal balances, from an empirical perspective. Based on empirical findings-particularly regarding inflation-we discuss their implications on macroeconomic policies, including monetary policy. We also highlight the need to consider the interactions between population dynamics and macroeconomic variables in macroeconomic policy decisions.

• KDI Journal of Economic Policy
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• v.34 no.4
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• pp.1-26
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• 2012

Greenhouse gas emission policy in Korea and elsewhere is based on emissions projections, a key element of which is the projected path of structural change from high productivity growth to low productivity growth economic sectors given sector specific labor productivity growth, emissions abatement across sectors and population growth. Thus, it is important to model the source of the structural change to forecast emissions correctly. Using data for the Korean economy, this study constructs and quantitatively evaluates a model of structural change and green growth to generate policy implications for Korea and the international greenhouse gas debate.

• Proceedings of the Safety Management and Science Conference
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• 2007.11a
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• pp.503-516
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• 2007

USA has distinct differences of economic policy by a ruling party. And, USA economy has mainly influenced on it of Korea. So, we examine whether a ruling party of Korea has different regime including rate of return in stock market. The Republican Party and Democratic Party have based on Milton Friedman and Keynes economy at each other's economic policy in the USA The Republican Party and Democratic Party have different interest level and excess return on equity, GDP growth rate, unemployment rate. Also, a ruling party of Korea has different regime and economic activity in this paper.

• Journal of Distribution Science
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• v.15 no.12
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• pp.41-51
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• 2017

Purpose - This study proposes the impact of the US and Korean economic policy uncertainty on macroeconomy, and its effect on Korea. The economic policy uncertainty index of the US and Korea is used to represent the economic policy uncertainty on Korean economy. Research design, data, and methodology - In this paper, we collect the eight variables to find out the interrelationship among the US and Korean economic policy uncertainty index of the US and macroeconomic indicators during 1990 to 2016, and use Vector Error Correction Model. Result - The distribution industry stock index in Korea is influenced by the economic policy uncertainty index of the US rather than of Korea. All variables are related negatively to the economic policy uncertainty index of the US and Korea from Vector Error Correction Model. This study shows that the economic policy uncertainty index of the US and Korea has the dynamic relationships on the Korean economy. Conclusions - A higher economic policy uncertainty shows a greater economy recession of a country. Finally, the economic policy uncertainty of the Korea has an intensive impact on Korea economy. Particularly, the economic policy uncertainty of the US has a strong impact on distribution industry stock market in Korea.

• Environmental and Resource Economics Review
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• v.31 no.3
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• pp.367-391
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• 2022

We develop an energy-economy Bayesian DSGE model with the two sectors of electricity generations-traditional (fossil, nuclear) and renewable energy. Under imperfect substitutability between the two sectors, a technological shock on renewable energy sectors does not sufficient to facilitate energy conversion and reduce greenhouse gas emissions. Technology innovation on greenhouse gas emission reduction is also required. More importantly, sufficient investment should be derived by a well-functioning electricity market where electricity price plays a signal role in efficient allocation of resources. Indeed, market rigidities cause reduced consumption.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.2
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• pp.141-149
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• 2022

Despite the importance of the insurance business for financial and economic development, few studies have looked at the factors that influence its growth. This research adds to the body of knowledge by empirically examining the impact of numerous factors on the development of the insurance business in 15 Middle East and North African (MENA) countries from 2000 to 2017. The study looks at macroeconomic, demographic, and institutional factors as potential drivers of the insurance industry's growth, with the insurance premium as a percentage of GDP as the dependent variable. All variables are stationary at the first difference, according to the IPS panel unit root test. The Pedroni residual cointegration test, Kao residual cointegration test, and Johansen-Fisher panel cointegration tests are then used to look for long-run associations. The cointegration tests strongly suggest that the insurance premium and the various variables have long-run correlations. Findings from the Fully-Modified OLS imply that GDP per capita, gross capital formation, and the KOF economic globalization index have a positive long-term impact on the insurance business. The insurance business is also driven by combating corruption and the rule of law. The population and regulatory quality, on the other hand, have no significant impact.

• KDI Journal of Economic Policy
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• v.36 no.4
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• pp.171-205
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• 2014

This paper investigates the manner in which house prices affect macroeconomic variables through a house price channel by applying the method of Iacoviello (2005) to Korean data, and establishing a DSGE model with complementarity. This paper found that higher LTV ratio coupled with stronger complementarity results in the co-movement in both consumption and housing. For instance, the results show that when the LTV ratio and complementarity stands respectively at 50% and 0.42, an 1% rise in house prices increases consumption by 0.057%, and when the complementarity parameter increases to 0.52 with LTV remains unchanged at 50%, consumption rises by 0.047% per 1% increase in house prices. An increase in house prices leads credit constraints for borrowers to become more loose as value of a house rises as a collateral. The increase in household credit enables more consumer spending, eventually leading to increased consumption. A key link in which house prices are connected to macroeconomic variables is change in consumption. To put it simply, a rise in house prices leads to an increase in consumption, which consequently impacts the overall macro-economy. At this point, complementarity is found, in that the elasticity of intra-temporal substitution between housing and consumption is estimated at 0.42, which plays an important role in the house price channel by amplifying the effects of house prices on consumption.