TY - JOUR
AU - Prof. Dr. Mohammad M. Alaya,
PY - 2024/05/30
Y2 - 2024/08/05
TI - Simultaneous Equations Modeling: Examining The Relationship Between Money Wages, Labor, And Gross National Income In Jordan (2006-2022).
JF - Revista Electronica de Veterinaria
JA - REDVET
VL - 25
IS - 1S
SE - Articles
DO -
UR - https://veterinaria.org/index.php/REDVET/article/view/600
SP - 196-206
AB - This study delves into the structural simulation equations influencing the interrelation between W (money wages) and GNU (Gross National Income) simultaneous equations. The variables encompassed in both models include W, GNU, P, R, L, M, and the unemployment ratio, with all variable data expressed in percentage ratios, except for GNU, which is in millions J.D. The dataset draws from various sources, primarily relying on the Central Bank of Jordan's annual reports and I.M.F. reports spanning 2006–2022. Employing weighted least squares, two-stage least squares, the instrumental method, and Anova, the study scrutinizes the simultaneous equation models to ensure their fit to the data.In this analytical framework, the structural equations of GNU involve both current and ratio values of affected variables in the structural models of GNU, with predictors and instrumental explanations including W, P, unemployment ratio, R, M, and L. The R-squared value for this model is 97.6%, indicating strong explanatory power. However, despite the high R-squared value, it is noteworthy that not all explanatory variables exhibit complete utility. In the TSLS (two-stage least squares) model, where the dependent variable is W (money wages), the predictors include the Unemployment ratio, P, R, M, GNU, and L. The R-squared in this model is 93.8%, revealing significant relationships between W, P, Unemployment ratio, and M. Notably, we deem the impact of GNU as not significant, suggesting it does not exert a substantial influence on money wages.
ER -