The variable of BI has been considered as endogenous variable
based on literature, whereas, the variables of board size (BSIZE) and CEO duality (DUAL) have been considered as instrumental variables.
Maps in figures 6 and 8 show the estimated classification of countries into groups for G = 4 when GDP and PS respectively is the endogenous variable
. Furthermore, Figures 7 and 9 show the parameter estimates, [[alpha].sub.gt], and average variables by groups over time.
- It is observed that the influences of INMR and OTMR on the endogenous variable
are not significant, which means that the employers do not take into account the immigration and the emigration.
The statistical qualities of the model, such as the strong interdependence between exogenous and endogenous variables
, support this methodological approach and suggest that OCA theory can provide relatively strong support for the calculation of modified OCA indexes (Skorepa, IES 2011, and Finance a liver 2013).
Annual data is employed for the following endogenous variables
(1) Current account as % of GDP, (2) Output gap as % of potential output, and (3) Real effective Exchange rate misalignment
Among two latent variables, 'Physical appearance' ([[eta].sub.1]) influences the endogenous variable
'Fitness of ferry' while 'Service features' ([[eta].sub.2]) influences the endogenous variables
'Riding safety' and 'Comfort level' individually.
where [y.sub.t] = ([y.sub.1t],[y.sub.2t], ..., [y.sub.kt])' is a vector of K observable endogenous variables
Where [y.sub.t] is a vector of endogenous variables
, [[gamma].sub.0] is constant, [y.sub.t-1] is a vector of their Lagged values, [[epsilon].sub.t] is a vector of disturbance terms of variables which reflect exogenous shocks, B is a square matrix of structural parameters, A(L) is the matrix of lag polynomials, M is the matrix that shows the response of endogenous variables
to the structural shocks.
The purpose of this analysis was to observe the direct effects of the two unobserved exogenous variables, knowledge and attitude, on the unobserved endogenous variable
, practice (Table3).