TITLE:
Estimating the New Keynesian Model by Bootstrap Method for Johor Economy Tourism
AUTHORS:
Lola Muhamad Safiih, Hussin Mohd Fadli, Zainuddin Nurul Hila, Ramlee Mohd Noor Afiq
KEYWORDS:
Bootstrap Method, Bootstrap Keynesian Model, Multiplier, Economic Tourism, Simulation
JOURNAL NAME:
Modern Economy,
Vol.7 No.10,
September
9,
2016
ABSTRACT: The use of Keynesian Model (KM)
is exposed to large error value as well as wide confidence intervals, which may affect the accuracy of the results. Therefore,
this paper attempts to hybridize bootstrap approach with Keynesian Model to
obtain accurate estimation results which are known as the Bootstrap Keynesian
Model (BKM). The proposed model is applied to the data of Johor Economic
Tourism. The findings indicate that the Bootstrap Keynesian Model is the best
model compared to the Keynesian Model since
the error produced using the Bootstrap Keynesian Model is smaller and
the confidence intervals are shorter. This shows that the proposed model is
best to use in the measurement of multiplier. It can be concluded that the
application of MK with bootstrap method is very useful to provide more accurate
decisions. Therefore, the multipliers obtained may provide useful information
for policy makers and researchers in the field of tourism.