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Identifying regime switches using causal recipes

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  • Huarng, Kun-Huang

Abstract

This study proposes a new method to identify regime switches in a time series. First, the method uses fuzzy set/qualitative comparative analysis (fsQCA) instead of quantitative methods because studies show that fsQCA outperforms quantitative methods. The new method is unique in that the method examines causes for regime switches instead of outcome as in previous studies. FsQCA explores the relationships between relevant antecedents of energy consumption and gross domestic product as the outcome. Historical events validate the results, which demonstrate that the method successfully identifies regime switches.

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  • Huarng, Kun-Huang, 2016. "Identifying regime switches using causal recipes," Journal of Business Research, Elsevier, vol. 69(4), pages 1498-1502.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:4:p:1498-1502
    DOI: 10.1016/j.jbusres.2015.10.131
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    Cited by:

    1. Kun-Huang Huarng & Tiffany Hui-Kuang Yu, 2017. "Using qualitative approach to forecasting regime switches," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(5), pages 2035-2048, September.
    2. Skarmeas, Dionysis & Saridakis, Charalampos & Leonidou, Constantinos N., 2018. "Examining relationship value in cross-border business relationships: A comparison between correlational and configurational approaches," Journal of Business Research, Elsevier, vol. 89(C), pages 280-286.
    3. Xinze Li & Ronghui Yu & Chenjie Yan & Hongwei Xie, 2022. "A Study on the Path to the Sustainable Development of Sports-Consuming Cities—A Qualitative Comparative Analysis of Fuzzy Sets Based on Data from 35 Cities in China," IJERPH, MDPI, vol. 19(16), pages 1-14, August.

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    Keywords

    Causal combinations; Regime switches;

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