Applied Economics Journal <p>Applied Economics Journal (ISSN: 2586-9124) is a double blind peer-reviewed journal devoted to the applications of economic theories, concepts and methodologies to analyze well-defined research issues. It encourages empirical analysis, simulation, prediction and forecasting research. While it is aimed at academics and policy makers interested in the Thai and Asian economies, the journal also considers articles that deal with global issues. The primary criteria for selecting papers are originality, quality, and contribution to the field. The categories of articles include commentary, review articles, research articles and book reviews. AEJ is indexed in the Thai-Journal Citation Index (TCI, Tier1), IDEAS/RePEc, CAB Abstracts, Google Scholar, ASEAN Citation Index (ACI) and Emerging Sources Citation Index (ESCI). Two issues are published a year, in June and December. All articles are open access. No submission fee and page charge.</p> en-US <p style="text-align: justify;">Submission of a manuscript to Applied Economics Journal will be taken to imply that the author(s) guarantee that the paper is an original work, has not been published, and is not being considered for publication elsewhere either in printed or electronic form. The author(s) have obtained permission from the copyright holder to reproduce in the article material not owned by them, that author(s) have acknowledged the source, and that this article contains no violation of any existing copyright or other third party right or any material of an obscene, indecent, libelous or otherwise unlawful nature and that the article does not infringe the rights of others. The author(s) will indemnify and keep indemnified the editors and Applied Economics Journal, Center for Applied Economics Research (CAER), Faculty of Economics, Kasetsart University against all claims and expenses. The author(s) agree that the publisher may arrange for the article to be published and sold or distributed on its own, or with other related materials, and could reproduce and/or distribute in printed, electronic or any other medium whether now known or hereafter devised, in all languages, and to authorize third parties to do the same.</p> (Waleerat Suphannachart) (Waleerat Suphannachart) Wed, 11 May 2022 13:08:14 +0700 OJS 60 Contents Waleerat Suphannachart Copyright (c) 2022 Applied Economics Journal Wed, 11 May 2022 00:00:00 +0700 Editorial Note <p>Since the beginning of 2022, <em>Applied Economics Journal (AEJ)</em> has undergone some changes relating to the editorial team, the online system, the front cover, and the content of editorial note. I would like to note these changes in this first issue of the year. First, <em>AEJ</em> has welcomed two new board editors, Professor Hermann Waibel from Leibniz University Hannover, Germany, and Professor Selahattin Dibooglu from the University of Sharjah, United Arab Emirates. Second, we have welcomed Dr. Hongsilp Sriket from the Department of Economics, Kasetsart University as our new associate editor. The expertise and publications of our editorial team can be seen by clicking on the names of editors on our website. Third, our journal management system named ‘ThaiJo’ has been updated and since February 2022 we have been using the new system in which all users must reset their passwords when they first log into the system. More information and instructions can be found on our Facebook page. Fourth, our front cover has been changed to an orange color theme (which is the signature color of our faculty) highlighting the volume and issue numbers with a bigger font size. Fifth, this Editorial Note will be used to keep our audience informed of new announcements and relevant changes. It is no longer written based on themed content with articles of similar topics and areas because most of our published articles cover a wide range of issues in applied economics. This allows the journal to publish up-to-date empirical evidence and increases the chance of new articles being cited. There is also no summary of all published articles as summaries can be read more clearly from the Abstract of each article. For more information on our journal, please visit our website, and in particular, if you plan to submit an article, please kindly read and follow the author guidelines on the ‘Submissions’ page. All articles shall be submitted online via our website. If you have any queries or suggestions, please feel free to contact the Chief Editor, Dr. Waleerat Suphannachart, at</p> Waleerat Suphannachart Copyright (c) 2022 Applied Economics Journal Wed, 11 May 2022 00:00:00 +0700 Effect of Locus of Control on Job Performance: Evidence from Australian Panel Data <p>This paper aims to examine the importance of locus of control for job performance. We draw on Australian panel data and use the fixed effects panel data analysis technique to estimate the causal effect of locus of control on working people’s job performance. Our findings reveal that locus of control positively affects the adaptive performance dimension of job performance. Employees with a more internal locus of control tend to be better able to adapt to conditions and events in the workplace, leading to better performance on their jobs.</p> Nguyen Le Bao Ngoc, Dusanee Kesavayuth, Poomthan Rangkakulnuwat Copyright (c) 2022 Applied Economics Journal Wed, 11 May 2022 00:00:00 +0700 Economic and Social Conditions and Depressive Disorders: Case Study of Thai Provincial Level Data <p>This research aims to discover the impacts of economic and social conditions on depressive disorder in Thailand using provincial level data and in different regions in Thailand. The study uses data from 77 provinces in Thailand from 2015 to 2019. The results of the panel data model show that economic and social factors including economic conditions, poverty, education, technology infrastructure, risky health behavior in terms of drug addiction, and crime problems significantly affect the depressive disorder rate in Thailand. Results from regional levels show that unemployment significantly affects depressive disorder in the southern regions. With regard to social factors, education shows a significant effect on depressive disorder in the northern region, technology infrastructure mainly affects the northern and northeastern regions, risky health behavior in terms of drug addiction significantly affects the northern, central, and southern regions, and crime problems mainly affect the southern region. In conclusion, this study finds that social factors have more effect on the depressive disorder rate than economic factors. Moreover, the depressive disorder rate in the northern region is mainly affected by social factors, in contrast to the other regions. </p> Attasuda Lerskullawat, Thitima Puttitanun Copyright (c) 2022 Applied Economics Journal Wed, 11 May 2022 00:00:00 +0700 Demand for Thai Mobile Telecommunications and Market Power Measurement <p>This research studies how to estimate the demand for goods in the market. This demand-related information will be useful for analyzing competition among operators. The estimation method can use market-level data classified by operator. In addition, demand models using this estimation method must consider the problem of price endogeneity and therefore use the Market Share Inversion method. This method will be applied to Thai mobile telecommunications. From the estimation, it is found that the estimates are consistent with the assumptions of the model. The results of the estimation illustrate that the own-price elasticities of demand are greater than one (absolute value), while the cross-price elasticities of demand are varied. The demand-related information is used to estimate the marginal cost, which demonstrates a downward trend, while the market has larger number of users. This implies economies of scale. When calculating the Lerner Index as an alternative measure of market power, an increasing trend was found, indicating a greater dominance of the market of the operator, with very little change in market structure and tariff, especially for the last ten years. The results of the study can be used for studies of market dominance in Thai mobile telecommunications along with the market share. Regulators can propose various actions to reduce the market power of operators, which is beneficial for the market.</p> Thunwar Phansatarn, Chalita Srinuan, Pratompong Srinuan Copyright (c) 2022 Applied Economics Journal Wed, 11 May 2022 00:00:00 +0700 The Dynamic Relationship of Volatilities and Hedging between Cryptocurrencies and Other Financial Assets <p>Cryptocurrencies have created opportunities and challenges in investment as well as providing higher returns than other financial assets. Despite the unclear role and risks of cryptocurrencies, the opportunities they offer have attracted a number of investors to the crypto market. This study, thus, aims to analyze the dynamic relationship of volatilities and hedging between cryptocurrencies and other financial assets using Dynamic Conditional Correlation Generalized Autoregressive Conditional Heteroskedasticity (DCC-GARCH). The daily data span from August 2016 to December 2021. The result for volatilities showed a low dynamic correlation between cryptocurrencies and other financial assets and the ability to hedge minimal risk. Hence, investors should diversify the risk in their portfolios by investing in cryptocurrencies together with other financial assets without compromising the expected return.</p> Pitipat Nittayakamolphun, Thanchanok Bejrananda, Panjamapon Pholkerd Copyright (c) 2022 Applied Economics Journal Wed, 11 May 2022 00:00:00 +0700 Impact of Monetary Aggregates on Consumer Behavior: A Study on the Policy Response of the Federal Reserve against COVID-19 <p>Consumers have tended to sharply decrease their spending during the COVID-19 pandemic due to pessimistic expectations related to the economic outlook, concerns about their jobs, and a decline in incomes. The Federal Reserve has taken several measures in response to the pandemic, resulting in increases in the money supply and asset sizes. This study aims to analyze the impact of monetary aggregates on consumer behavior before and after the pandemic by employing the bootstrap autoregressive distributed lag (ARDL) cointegration test with an exogenous structural break. The US money supply (M3) and total assets are used as dependent variables and consumer expenditure, consumer credit, and consumer sentiment are the independent variables. The data employed cover the period from January 2003 to August 2020. The results show cointegration relationships among consumer expenditure, the US money supply (M3), and total assets. The effect of the FED’s policy response on consumer behavior has strengthened after the pandemic.</p> Esra Kilci, Veli Yilanci Copyright (c) 2022 Applied Economics Journal Wed, 11 May 2022 00:00:00 +0700 Asymmetry and Correlation of Macroeconomic Shocks: Adjustments within Heterogeneous Union <p>This article aims to identify the asymmetry and degree of correlation of supply and demand shocks within eight European Union countries over the period 2000Q1–2020Q1. We employ a structural VAR model by decomposing macroeconomic shocks into demand and supply disturbances. We define a transformation matrix from canonical shocks to structural ones with reference to the theoretical AS-AD model by imposing a long-run restriction to verify the long-run demand shock neutrality hypothesis on production. The originality of this research paper lies in the method of shock decomposition. Our results indicating the degree of asymmetry in the European countries are relatively significant. The disparities between member countries continue to grow, and recently a form of heterogeneity has appeared that includes the degree of price flexibility and rigidity. The European Union is experiencing a dichotomy. On the one hand, core countries are correctly aligned and maintain a significantly smaller degree of asymmetry of supply and demand shocks. On the other hand, peripheral countries are characterized by flagrant inequalities that have overwhelmed their local economies. However, the various measures adopted by the European authorities remain limited. We demonstrate that to resist the potential challenges of violent fluctuations, the European authorities must move towards fiscal reforms and carefully coordinate their economic policies.</p> Nejma Ghnaya, Aida Bouzir, Saloua Benammou Copyright (c) 2022 Applied Economics Journal Wed, 11 May 2022 00:00:00 +0700 An Economic Analysis of the Law on the Level of Significance of Criminal Penalties and Arrest Probability for the Degree of Property Crimes <p>Crime is a persistent social phenomenon arising from the committing of criminal offenses against the law of the state. Criminals' incentives or motivations for criminal acts are affected by many factors such as the severity of penalties, the chances of getting arrested, level of education, gender, socio-cultural factors, and so on. This research focuses on the correlation between the severity of criminal penalties and the probability of arrest and the seriousness of crime using concepts and processes of economic law. This includes mathematical modeling as well as testing the statistical significance of the models. The results show that it is the severity of legal penalty that reduces property offenses. A person's behavior changes when they feel they may face a high magnitude of criminal penalty. In other words, in judging whether to perform a criminal act towards property, criminals do not consider the probability of arrest but look at the criminal penalty. The Thai legislature will be able to take this conclusion into consideration in order to modify or create appropriate legal measures in the future. One of the most suitable policies is increasing the size of legal penalties in the Thai criminal code. When people perceive severe punishments, they will commit fewer crimes. Increasing the size of legal penalties can be achieved in a number of ways, including increasing the size of fines and requiring longer prison sentences.</p> Sarayut Khemngern, Steven John Bodley, Tanonrat Naktang, Korna Misayyati, Sitanan Khun-in, Pitipong Aroonruviwat, Thatree Chethanom, Tanapat Lekkiatkhachorn, Theerada Somanand, Ekkachai Martwong Copyright (c) 2022 Applied Economics Journal Wed, 11 May 2022 00:00:00 +0700