Browsing by Subject "OLS"
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Item Open Access Comparison of several estimators for the covariance of the coefficient matrix(Bilkent University, 1995) Orhan, MehmetThe standard regression analysis assumes that the variances of the disturbance terms are constant, and the ordinary least squares (OLS) method employs this very crucial assumption to estimate the covariance of the disturbance terms perfectly, but OLS fails to estimate well when the variance of the disturbance terms vary across the observations. A very good method suggested by Eicker and improved by White to estimate the covariance matrix of the disturbance terms in case of heteroskedeisticity was proved to be biased. This paper evaluates the performance of White’s method as well as the OLS method in several different settings of regression. Furthermore, bootstrapping, a new method which very heavily depends on computer simulation is included. Several types of this method are used in several cases of homoskedastic, heteroskedastic, balanced, and unbalanced regressions.Item Open Access Devaluation as a balance of payments corrective measure in Turkey(Bilkent University, 1990) Öztürk, ZeynepThe main purpose of this study is to examine emiprically whether or not devaluation could be relied upon as a means fo r correcting the balance of payments deficits in Turkey. The time period is the years between 1968-1984. In this study, an international trade model for Turkey is established to find out price and income elasticities of import and export demands. Restricted form of Marshal 1-Lerner condition (Harberger condition) is applied to see the effectiveness of devaluation. Import and export demands functions are estimated by both Ordinary Least Square and Two Stage Least Square methods to see how Turkey's case fits into the methodological controversy. Another issue considered is the choice between static and dynamic formulations of the export and import functions. It is found that import demand of Turkey is income elastic but price inelastic, whereas export demand for Turkey is elastic both w ith respect to the relative prices and income. Devaluation con be used as an effective tool in correcting the balance of payments in Turkey according to the study’s findings.Item Open Access Export promoting policies in Turkish manufacturing industry, 1980-1986(Bilkent University, 1989) Özyıldırım, SüheylaThis study basically aims at estimating the significance of export promoting policies for the expansion of Turkish manufacturing exports in the period 1980-86. The price responsiveness of export is also analyzed by evaluating the effects of a decline in labor wages on manufactured exports. In this study, export promoting policies are grouped as export subsidies (tax rebates, export credits and foreign currency allocations) and flexible exchange rate policy (devalmtion of Turkish lira since January 1980). As there is several years of data on a number of manufacturing subsectors, the cross-sectional time series models are used to test the significance of these policies. The tax rebates and forcing currency allocations are the most significant promoting policies affecting exports of manufacturing ii^ustry according to the study’s fii:dings. The devaluation of Turkish lira against dollar and mark has also an encouraging effect on the manufactured exports.Item Open Access The impact of merger on stockholder risk(Bilkent University, 1991) Alpar, GamzeThe main purpose of this study is to investigate empirically the impact of merger on stockholder risk. Mergers between LSE firms during the period 1983~1986 are examined. The literature provides three major hypotheses concerning merger and risk. These are tested to see whether the magnitude and the direction of change in risk following mergers is compatible with what is hypothesized. To gai further insight, the discrepancy between the systemati risk of the merged firm and that predicted by CAPM modelled using several market variables.Market model employed to estimate three measures of risk: Systemati unsystematic, total. n Given the limitations of the sample and research design, mergers are found to be associated with an increase in systematic risk over what is hypothesized. The absolute difference of premerger systematic risks of acquiring and acquired firms and financial leverage of the merged firm are found to explain the discrepancy between the actual and hypothesized level. On the contrary to systematic r-isk, unsystematic risk has not changed relative to premerger value of the acquiring company. The findings show that on average market takes a riskier view of the merged firm than its components and risk reduction may not be a valid rationale for mergers. Stockholders must question the mergers justified on the basis of risk reduction alone, since they can achieve the same reduction in unsystematic risk by portfolio diversification and mergers do not provide any benefits in terms of systematic risk reduction.