The behavior of real exchange rates: the case of Japan

The study examines the convergence rate of mean reversion by contrasting the estimated half-life of real exchange rate (RER). We employ an extensive monthly consumer price index (CPI)-based product price’s panel for Japan (the U.S. as the num´eraire). We find that the disaggregated RERs are persistent due to the cross-sectional dependence problems. By controlling common correlated effects, the estimated half-life for all goods may fall to as low as 2.54 years, below the consensus view of 3 to 5 years summarized by Rogoff (1996). After correcting the small-sample bias, the estimated half-life of deviations from purchasing power parity (PPP) increase by 1.03 year. Our findings also support that the half-life of mean reversion of RER is about 3.55 years for traded goods, about 0.11 year lower than non-traded goods. We also show that traded goods and non-traded goods perform distinct distributions of persistence

Threshold Effects in Cigarette Addiction: An Application of the Threshold Model in Dynamic Panels

We adopt the threshold model of myopic cigarette addiction to US state-level panel data. The threshold model is used to identify the structural effects of cigarette demand determinants across the income stratification. Furthermore, we apply a bootstrap approach to correct for the small-sample bias that arises in the dynamic panel threshold model with fixed effects. Our empirical results indicate that there exists the heterogeneity of smoking dynamics across consumers.Cigarettes demand, price elasticity, threshold regression model, dynamic panel model, bias correction, bootstrap

Evolution and dimensional crossover from the bulk subbands in ABC-stacked graphene to a three-dimensional Dirac cone structure in rhombohedral graphite

The band structure of ABC-stacked N-layer graphene comprises topologically corresponding flat surface and gapped bulk subbands, as a consequence of the unique stacking configuration. In this paper, the bulk subbands are for the first times ever obtained for arbitrary N. A non-perturbative effective Hamiltonian closed in the bulk subspace is derived and used. The gapped bulk subbands are shown to evolve towards the zero energy with increasing N and in the infinite limit, they touch linearly along a circle. This outcome is a manifestation of the dimensional crossover to a three-dimensional Dirac cone structure known to exist in the bulk of rhombohedral graphite. The Dirac points, forming continuous nodal lines in a spiraling fashion, are projected onto the circle, within which the surface subbands are confined and flatten.Comment: 23 pages, 4 figure