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The study uses a Markov-switching model (MSM) to investigate the relationship between foreign-exchange earnings from tourism and macroeconomic factors in Taiwan. The MSM decomposes foreign-exchange cycles into a high growth stage (HGS) and a low growth stage (LGS). The steady-state probability remains foreign-exchange earnings from tourism in the HGS and LGS are 0.7486 and 0.8631, respectively. The findings indicate that foreign-exchange earnings from tourism in Taiwan have a high tendency to stay in the LGS state and a low tendency to shift from the LGS state to the HGS state. Furthermore, the results show that macroeconomic factors in Taiwan can continuously affect foreign-exchange earnings from tourism in the HGS. [ABSTRACT FROM PUBLISHER]

Typhoon is one of the most destructive disasters in Taiwan, which usually causes many floods and mudslides and prevents the electrical and water supply. Prior to its arrival, how to accurately forecast the path and rainfall of typhoon are important issues. In the past, a regression-based model was the most applied statistical method to evaluate the associated problems. However, it generally ignored the spatial dependence in the data, resulting in less accurate estimation and prediction, and the importance of particular explanatory variables may not be apparent. Therefore, in this paper we focus on assessing the spatial risk variations regarding the typhoon cumulated rainfall at Taipei with respect to typhoon locations by using the spatial hierarchical Bayesian model combined with the spatial conditional autoregressive model, where the model parameters are estimated by designing a family of stochastic algorithms based on a Markov chain Monte Carlo technique. The proposed method is applied to a real data set of Taiwan for illustration. Also, some important explanatory variables regarding the typhoon cumulated rainfall at Taipei are indicated as well. [ABSTRACT FROM AUTHOR]