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Are Suicide Rate Fluctuations Transitory or Permanent? Panel KSS Unit Root Test with a Fourier Function through the Sequential Panel Selection Method

Author

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  • Tsangyao CHANG

    (Department of Fiance, Feng Chia University, Taichung, TAIWAN and Department of Business Administration, CTBC Financial Management College, Tainan, TAIWAN.)

  • Yifei CAI

    (School of Economics, Northeast Normal University, Changchun, CHINA.)

  • Wen-Yi CHEN

    (Department of Senior Citizen Service Management, National Taichung University of Science and Technology, Taichung, Taiwan.)

Abstract

The purpose of this study is to examine whether suicide shocks are transitory or permanent in 23 OECD countries. The Panel KSS Unit Root Test with a Fourier Function through the Sequential Panel Selection Method (SPSM) that allow us to control for structural breaks and nonlinearity as well as cross-section dependency and heterogeneity is applied to test whether suicide rates across 23 OECD countries for the period from 1961 to 2006 are stationary. The SPSM classifies the whole panel into a group of stationary series and a group of non-stationary series that is very suitable to identify how many and which series in the panel are stationary processes. The empirical results from several conventional unit root tests indicate that the suicide rates for the OECD countries are non-stationary. Nevertheless, when the proposed panel unit root test is used to test for the unit root hypothesis of suicide rates, we find that the suicide rates are stationary in 7 out of the 23 OECD countries. Our results thereby point out the importance of the proper modelling of both structural breaks and nonlinearities to test for the unit root hypothesis of suicide rates. These findings also imply that suicide rates in these OECD countries are overall not transitory and the government should progressively intervene into unexpected shocks that would increase suicide rates for suicide prevention.

Suggested Citation

  • Tsangyao CHANG & Yifei CAI & Wen-Yi CHEN, 2017. "Are Suicide Rate Fluctuations Transitory or Permanent? Panel KSS Unit Root Test with a Fourier Function through the Sequential Panel Selection Method," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 5-17, September.
    • Handle: RePEc:rjr:romjef:v::y:2017:i:3:p:5-17
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    References listed on IDEAS

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    Cited by:

    1. Izunna Anyikwa & Nicolene Haaman & Andrew Phiri, 2018. "Persistence of suicides in G20 countries: SPSM approach to three generations of unit root tests," Working Papers 1825, Department of Economics, Nelson Mandela University.
    2. Cumhur ERDEM & Mehmet DİNÇ, 2022. "The Socioeconomic Determinants of Suicide: A Panel Data Analysis," Yildiz Social Science Review, Yildiz Technical University, vol. 8(1), pages 1-12.
    3. Mitch Kunce, 2022. "A 'Natural' Suicide Rate, Hysteresis or Suicide Persistence? Evidence from U.S. State-Level Panel Data, 1980-2020," Journal of Statistical and Econometric Methods, SCIENPRESS Ltd, vol. 11(2), pages 1-2.
    4. Durmuş Çağrı Yıldırım & Seda Yıldırım & Seyfettin Erdoğan & Işıl Demirtaş & Gualter Couto & Rui Alexandre Castanho, 2021. "Time-Varying Convergences of Environmental Footprint Levels between European Countries," Energies, MDPI, vol. 14(7), pages 1-15, March.

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    More about this item

    Keywords

    suicide rates; sequential panel selection method; Panel KSS Unit Root Test; Fourier function; policy implications; OECD countries;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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