Zulal Denaux, PhD

During this time period, I earned the following awards and recognitions:

* 2002 Quality Research Award, Harley Langdale, Jr. College of Business Administration, Valdosta State University, Valdosta, GA

* 2003, 2004, 2005, 2006 Professional Development Grant, Valdosta State University (each year)

* 2004, 2005, 2006 Steele Summer Research Grant of up to $8,000, Harley Langdale, Jr. College of Business Administration, Valdosta State University (each summer)

* 2005, 2006 Quality Research Award, Harley Langdale, Jr. College of Business Administration, Valdosta State University, Valdosta, GA

During this time period, I earned the following awards and recognitions:

* 2001 Teaching Award, MBA Professor of the Year 2001-2002 (first winner) selected by MBA students in Meredith College

Authored by T. Omay, F. Emirmahmutoglu, and Z. Denaux. We propose a nonlinear error correction-based cointegration test in a panel data setting and provide their small sample properties. A nonlinear ECM based cointegration test is proposed. The proposed test is the first nonlinear error correction based test in the panel cointegration literature. The nonlinear ECM with logistic transition functions implies asymmetric adjustment. This study utilizes a sieve bootstrap method for cross-section dependency problem. Simulation results confirm the superiority of the nonlinear ECM-based test in finite samples performance.

Authored by H. Berument, Z. Denaux, and Y. Yalcin. In this study, we examine the responsiveness of exports to the real exchange rate shocks for different countries. Employing a Vector Autoregressive (VAR) methodology, the effects of different real exchange rate shocks on the Turkish export demand is examined by using quarterly data from the Turkey’s 15 major trade partners. The study finds that the depreciation of the aggregate real exchange rate affected the Turkish export demand positively and significantly for three quarters. After accounting for the effect of the aggregate real exchange rate, this study empirically shows that the responses of Turkish exports to individual bilateral real exchange rate shocks are not uniform across countries.

Authored by H. Berument, Z. Denaux, and F. Emirmahmutoglu. Capital inflows are important factor affecting macroeconomic performance, such as the real exchange rate, interest rates, output, and price level. However, the components of capital inflows are also important. Capital inflows in the forms of portfolio investment liabilities, foreign direct investment, and other investment liabilities may affect these macroeconomic variables differently. The main focus of this study is to analyze the behavior of key macroeconomic variables in response to the different components of capital inflow shocks for Turkey using monthly data from 2000:1 to 2012:12 by utilizing a vector autoregression model.

This paper discusses and empirically analyzes the implications of efficiency and innovation offsets for the management of non-point source pollution from agriculture. If efficiency improvements and green innovation indeed combine environmental advantages with economic advantages, these offsets would offer a free lunch adjustment to environmental regulations. A theoretical model of the farm is developed where pollution is a joint output of production, where inefficiency in production prevails and environmental innovations are available. We discuss whether education about environmentally friendlier farming practices is effective in such a context. The empirical analysis addresses pesticide use in conventional and genetically modified cotton production in North Carolina, USA. The conceptual model was implemented by means of the non-parametric directional distance function approach (Data Envelopment Analysis, DEA).

Authored by Zulal S. Denaux and Rebecca Falks. This study empirically examines the effect of exchange rate fluctuation on bilateral trade flows between Turkey and its 5 major trading partners in the European Union. The impact of exchange rate volatility on trade is examined by an Ordinary Least Squares method (OLS) using quarterly data from 1988:Q1 to 2011:Q3. The study finds that exchange rate volatility does not have a statistically significant effect on import demand, that Turkish import demand is determined by income and currency appreciation, and that the 2008 and euro crises did not have a significant effect on imports.

Authored by F. Duncan and Z. Denaux. Periodically referred to as the “cradle of civilization”, an adage reflecting its past economic success and growth, the Middle East and North Africa region continues to serve as an international focal point, albeit a disappointing one in light of its economic potential. Therefore, the purpose of this study is to utilize regression analysis to reexamine the impact of initial conditions, human capital, the investment ratio, macroeconomic performance, trade openness, life expectancy, and natural resource abundance on the growth of the Middle East and North Africa region’s real GDP per capita in light of recent events, namely the widespread civilian protests, demonstrations, and toppled dictatorships across the Arab World where high unemployment, security states, a weak private sector, volatile external revenues, and a disproportionate concentration of power in the hands of a few have been the norm for decades.

Authored by H. Berument, Z. Denaux, and Y. Yalcin. In this paper, we assess the effect of exchange rate movement on macroeconomic performance by differentiating the source of exchange rate movement as either an expansionary monetary policy or a portfolio preference shock using quarterly data from Turkish economy for the period 1987:Q1 to 2008:Q3. Empirical evidence suggest that if the depreciation of the exchange rate stems from an expansionary monetary policy shock, then the effect of currency depreciation on the economy is expansionary. On the other hand, if currency depreciation comes from a portfolio choice allocation, then the effect of exchange rate deprecation on the economy is contractionary.

Authored by H. Berument, Z. Denaux, and Y. Yalcin. With increasing financial integration (globalization), the performance of the emerging financial market has been substantially affected by the performances of major developed financial markets. This study explores how one of the leading Emerging Markets (the Istanbul Stock Exchange; ISE hereafter) and various components of the ISE index are affected by various indices from the US stock markets. The empirical evidence reveals that unexpected shocks in the US stock markets have both contemporaneous and first period effects on the Turkish stock market. The co-movements among the markets are positive and significant. Moreover, importantly, the Turkish stock market closely follows the movements of the US stock exchange which has small-cap companies rather than of the stock exchanges which have similar sectoral weights as in the Istanbul Stock Exchange.

Authored by Z. Denaux, W. Plumly, and C. Lipscomb. This study analyzes public high school efficiency, defined as the maximum level of educational attainment obtained with a given level of school inputs, in the State of Georgia. Using data envelopment analysis (DEA), urban and rural public high school efficiency differences are evaluated using a two-step estimation process. First, a nonparametric Mann-Whitney U-test confirms the significant difference in mean efficiency scores between urban and rural high schools. Second, we use a Tobit regression model to find factors that influence the efficiency differences between rural and urban high schools. The regression results suggest that rural schools operate less efficiently than urban schools.

Authored by H. Berument, Z. Denauz, and Y. Yalcin. This article estimates the effects of monetary policy on components of aggregate demand using quarterly data on Turkish economy from 1987–2008 by means of structural Vector Autoregression (VAR) methodology. This study adopts Uhlig's (2005) sign restrictions on the impulse responses of main macroeconomic variables to identify monetary shock. This study finds that expansionary monetary policy stimulates output through consumption and investment in the short-run. However, expansionary monetary policy is ineffective in the long-run.

Authored by Z. Denaux, Dl. Denaux, and Y. Yalcin. Many studies have been conducted analyzing factors affecting the demand for Major League Baseball (MLB) games. This paper revisits the factors affecting the long-run demand for attendance, employing an unbalanced panel technique for all home games played over the period from 1979 to 2004 seasons for the 12 non-expansion, non-adjustment teams from MLB. Combining both teams and every home game played during 1979–2004 seasons, dimensions provide better understanding of long-run demand for attendance. The study finds that time factors, fan interest, city characteristics, team’s performance, and fan’s attendance behavior have strong influences on the game attendance.

This study focuses on rural-urban public high school efficiency. School efficiency is defined as the maximum level of educational attainment obtained by given level of school inputs. In this study, school efficiency is assessed by means of data envelopment analysis (DEA) with an application to the state of Georgia using data collected on county school. Urban and rural school efficiency is evaluated by a two- step estimation process. First, a nonparametric Mann-Whitney U-test is used to determine whether the differences in mean efficiency scores between urban and rural county high schools are significant. Differences in mean efficiency scores between urban and rural county high schools are found to be significant. Second, by means of a Tobit regression analysis, factors that may contribute to this efficiency difference between rural and urban school are evaluated. The regression results confirm that rural schools operate less efficiently than urban schools. The estimated percentage of adults residing in the county school district with at least a bachelor's degree, number of people residing in the county which recognize their race as "white", and whether the school met adequate yearly progress as by the No Child Left Behind Act contribute to the differences in efficiency scores.

Authored by V. Whittle and Z. Denaux.

Authored by A. Wossink and Z. Denaux. This paper discusses and empirically analyzes the implications of efficiency and innovation offsets for the management of non-point source pollution from agriculture. If efficiency improvements and green innovation indeed combine environmental advantages with economic advantages, these offsets would offer a free lunch adjustment to environmental regulations. A theoretical model of the farm is developed where pollution is a joint output of production, where inefficiency in production prevails and environmental innovations are available. We discuss whether education about environmentally friendlier farming practices is effective in such a context. The empirical analysis addresses pesticide use in conventional and genetically modified cotton production in North Carolina, USA. The conceptual model was implemented by means of the non-parametric directional distance function approach (Data Envelopment Analysis, DEA).

Authored by A. Wossink and Z. Denaux. This paper provides a theoretical and empirical investigation of the simultaneous effects of taxes and government spending on long‐run economic growth in an endogenous growth framework. A two‐sector model is considered: one sector produces physical output and the other produces human capital. Government expenditure is divided into several categories, and several types of taxes are included. The property tax is especially interesting because it is a major source of revenue for local government. The theoretical model is estimated using annual panel data from North Carolina counties. This study finds that state‐level fiscal policies affect economic growth but county‐level fiscal policies do not.

Authored by A. Wossink and Z. Denaux. This study focuses on the quantification of pesticide use efficiency for producers of transgenic cotton versus conventional cotton in order to test for the improvement promised by the genetically engineered crop. The environmental and cost efficiency of pesticide use is assessed by means of data envelopment analysis (DEA) and the external effects of pesticide are quantified by means of the pesticide leaching potential. To account for the fact that conditions other than the ‘treatment” (seed type) are not equal in farm surveys the study employs a second step Tobit regression. The data are from a survey of cotton growers in North Carolina, USA. Differences in environmental efficiency are found to be significant between herbicide tolerant and stacked gene (herbicide tolerant and insect resistant) cotton and between stacked gene and conventional cotton. In contrast, no statistically significant differences are found for efficiency of pest control cost. In the follow-up Tobit regression, differences in production environment and in farm, farmer and field characteristics are accounted for so that the contribution of seed type to efficiency can be observed. The regression results confirm the importance of stacked gene cotton for improving the environmental efficiency of pesticide use in cotton. In contrast, seed type was not significant in explaining differences in cost efficiency among North Carolina cotton growers. The new technology reduces pesticide application but these benefits are curbed by the high price of cotton seed (technology fee).

Authored by W. Plumly, R. Allen, and Z. Denaux in the International Journal of Business and Economics Perspectives, Volume (1), Spring 2006, p 31-40

Authored by Z. Denaux, D. Cunningham, and R. Allen, Journal of Business and Public Affair, Volume 32(1), Fall 2005, p 21-25.

Authored by Z. Denaux, Journal of Business and Public Affair, Volume 32(1), Fall 2005, p 14-20.

Authored by Z. Denaux and M. Walden. What is the net effect of simultaneous changes in tax rates and government spending on economic growth? This question is both of theoretical interest to economists as well as practical interest to public decision makers. Our contribution to the question is two-fold. First, we advance the theoretical content by developing a two-sector endogenous growth model and showing the effects on economic growth of five types of taxes and three categories of public spending. Second, we empirically apply the model and calculate net growth impacts of alternative combinations of tax rate and public spending changes. Our results show the net impacts on growth importantly depend on the tax and spending combination considered. Increasing corporate income tax rates, regardless of how the revenues are spent, retard economic growth. Upwardly shifting marginal individual income tax rates with the added funds spent on higher education raises economic growth, while spending the funds on K-12 public education lowers growth. Finally, simultaneously increasing gas tax rates and spending on roads raises economic growth.

Authored by M. Walden and Z. Denaux. Financing local public goods is a major issue in many communities, especially those that have experienced rapid growth. This paper analyzes problems associated with locally collected real property taxes where the real property tax base is only revaluated at long time intervals. Using counties in North Carolina as the subject of the analysis, we find that effective real property tax rates fall between revaluations. We calculate that a system of taxing market values of real property at a constant legislated tax rate would have yielded additional annual revenues of $320 million for North Carolina counties over 1980 to 1995.

Authored by M. Walden, L. Michael, and Z. Sogutlu. Previous work on understanding the determinants of average teacher salaries has focused on interstate variation. This study addresses determinants of intrastate variation in teacher salaries. Using the model developed by Walden and Newmark, average teacher salaries in North Carolina school districts are related to variation in the local cost-of-living, personal characteristics of teachers, job characteristics of the teaching positions, and local demand factors. A key finding is that, like interstate studies, we find local salaries are related to local cost-of-living measures. Also, after accounting for education and experience characteristics, local teacher salaries are higher in districts with a greater proportion of secondary teachers, in districts with larger average school sizes, and in districts with a greater demand for education.

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