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
In essence, we apply the Granger causality (GC) concept to investigate the empirical relations between current and lagged
endogenous variables and the relative predictive ability of each set of lagged
endogenous variables.
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).