Small-Sample Improved Seasonal Unit Root Tests for Trending and Breaking Series

In this article three unit root tests that allow for a break in both the seasonal mean and linear trend of the data are proposed. The tests, which can be seen as small-sample corrected versions of already known asymptotic tests, are shown to perform very well in simulations, and much better than their asymptotic counterparts.     

DO TERRORIST ATTACKS IMPACT EXCHANGE RATE BEHAVIOR? NEW INTERNATIONAL EVIDENCE

This study examines whether terrorist attacks affect bilateral exchange rates. Using historical 10‐minute exchange rate data for 21 countries' currency vis‐à‐vis the U.S. dollar, we show that exchange rate returns of all countries are statistically significantly affected by terrorist attacks. Some exchange rates appreciate and some depreciate following a terrorist attack, some currencies experience exchange rate reversals while others experience a persistent effect. Generally, the effect declines but persists as terrorist attacks become stale information. (JEL F31, F37)     

Working with Language: A Refocused Research Agenda for Cultural Leadership Studies

This paper critically reviews existing contributions from the field of cultural leadership studies with a view to highlighting the conceptual and methodological limitations of the dominant etic, cross‐cultural approach in leadership studies and illuminating implications of the relative dominance and unreflective use of the English language as the academic and business lingua franca within this field. It subsequently outlines the negative implications of overlooking cultural and linguistic multiplicity for an understanding of culturally sensitive leadership practices. In drawing on lessons from this critical review and the emergent fields of emic, non‐positivist cultural leadership studies, this analysis argues that the field of cultural leadership studies requires an alternative research agenda focused on language multiplicity, which enables the field to move towards emic, qualitative research that helps to empower individual cultural voices and explore cultural intra‐ and interrelationships, tensions and paradoxes embedded in leadership processes. The paper concludes by offering suggestions on methodological approaches for emic cultural leadership studies that are centred on the exploration of language as a cultural voice.     

A new unit root test with two structural breaks in level and slope at unknown time

In this paper, we propose a new augmented Dickey–Fuller-type test for unit roots which accounts for two structural breaks. We consider two different specifications: (a) two breaks in the level of a trending data series and (b) two breaks in the level and slope of a trending data series. The breaks whose time of occurrence is assumed to be unknown are modeled as innovational outliers and thus take effect gradually. Using Monte Carlo simulations, we show that our proposed test has correct size, stable power, and identifies the structural breaks accurately.     

The Determinants of Immigration from Fiji to New Zealand: An Empirical Reassessment using the Bounds Testing Approach

This article re‐examines Gani's (1998) findings on the determinants of migrant flows from Fiji to New Zealand by employing the bounds testing procedure to cointegration, within an autoregressive distributive lag framework. The main findings are that in the long run all variables are statistically insignificant, although correctly signed with the exception of the unemployment differential. In the short run, in sharp contrast to Gani's (1998) findings, political instability is consistently the most important determinant of migration flows while the standard of living and real wage differentials are statistically insignificant across all specifications.